Investing In Real Estate For Maximum Retirement Wealth

Investing in real estate could be by far the fastest way to accumulate the wealth you need for your retirement portfolio.

Of course you gotta know what you are doing...or you could land in hot water very quickly. But don't let this warning scare you. The truth is investing in real estate is a very forgiving business with even the most basic knowledge. Which means, you have to try real hard in order to not make a substantial profit on a deal (even if you do almost everything wrong).

There are many facets to this business. As such, there is no absolutely no excuse to sit on the sidelines. It doesn't matter if you have a Ph.D or barely graduated grammar school. Age doesn't matter. You could be 90 years old or a recent high school graduate. Your risk tolerance is also irrelevant.

Here are just a few of the various niches you could invest in. You could choose real estate investing with foreclosures, tax liens, commercial real estate investing, lease options etc. The list goes on and on. And when you add the various exit strategies with each investment, the list is even longer.

If you don't want to deal with commercial or residential properties, you could simply buy and hold land or explore opportunities in note buying.

Whether the economy is up or down, whether the real estate market is hot or cold or just lukewarm, there are tremendous wealth building and money making opportunities when you're investing in real estate.

In the current real estate market, you wouldn't believe the amount of money investors are making with what are called short sales. Short sales are nothing more than when a bank or a mortgage company decides to accept less than what is owed on a property as a payoff.

As an example, let's say your brother-in-law (you know, Mr. Know-it-all) came to Florida and decided that all of a sudden he was a real estate investor. So he walked into a Real Estate office where he met an agent who gladly gave him a tour of Cape Coral.

The agent takes him to a new development where your brother-in-law decides to invest in a pre-construction. He figures he'll find a buyer who will pay him more for the house than he agreed to purchase it for. Or at the very least, he'll rent it out. Either way, he's now a big real estate investor (at least in his own mind).

Let's fast forward the clock to end up in the market we're in today. Nothing is moving. Real estate is slow. There are more houses to sell than there are willing and ready buyers (exactly the type of market we have now in Florida thanks to speculators).

Anyway, let's say when your big shot brother-in-law signed his contract with the builder, he bought at the top of the market, and overpaid for the house. Say he signed a contract for $350,000. But now, he can't rent the house because it won't cover the mortgage and he can't sell it because the house isn't worth $350,000 anymore. BUT, he can get $300,000 for it easily.

Guess who walks in to save the day? Yes. You. With the little knowledge you have about short sales, you call the mortgage company, and you negotiate and offer to purchase the house for $245,000. The bank agrees because it would rather have the money than have the house sit on the market.

Since you just purchased a $350,000 house for $245,000, you call a local Realtor and have her put the house on the market for $280,000 (a great deal to any buyer who starts out with $20,000 in equity the day he buys...provided the house appraises for at least $300,000).

When you sell the property, you will have made $35,000. More importantly, you are now the family hero who got your wife's brother out of foreclosure and saved his credit from getting ruined. $35,000 richer, hero all in the same day. Because you know about short sales. How many transactions like that do you need to do in any given year to live comfortably in retirement?

These types of deals are in every market every day of the year. You just have to know how to find them. Investing in real estate is super fun, and rewarding at the same time. Just keep the greed glands under control though.

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Learn as much as you can about investing in real estate. It's a fun, easy and profitable business. If you do, I can promise you that you will be the envy of all those around you (both now and in retirement). More importantly, you will leave behind more wealth for your heirs than they'll know what to do with. Get off the sidelines. Get in the game and have fun.

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