Make Money With Real Estate: An Introduction

By Richard Reis

Why Talk About Real Estate?

If you venture deep enough down the “early retirement community” rabbit hole, you’ll find most people got rich in one of two ways: Entrepreneurship or Real Estate.

Principles For Buying

1. Mindset

Make no mistake, buying a house is a business transaction.

2. Timing

The most obvious advice here is to buy when the economy is down (yup, this means that post 2008 was the best time to buy houses in the US).

  1. Look for a house that’s been on the market for at least 3 weeks.
  2. Do your research! (this is a great time to use that list we talked about) Does this house meet all your criteria? All of it? Are you sure? If so…
  3. Tell the seller you will buy the house today if she accepts your price.

3. Location

Don’t worry about deals all around the US. I did this for some time and realized how silly it was.

4. Learn To Recognize A Good Deal

A good deal is one that is likeliest to make you money.

  • If a house costs more than 20 times the annual rent, it’s probably too expensive.
  • The majority of buyers and renters prefer a 3-bedroom, 2-bathroom house. This will increase your demand.
  • Look for a house with a garage or basement (people looooove their storage space).
  • Small yards will attract more families with children and pets.
  • Stay away from busy streets or corner lots (those houses sell less on average).

Principles For Renting

1. Look For Long-Term Tenants

When asking possible tenants how long do they plan to stay in the house, most will say “one or two years.”

2. Look For Ethical Tenants

This means you want to make sure that a) tenants won’t ruin your house and b) tenants will pay on time.

Next Steps

This letter barely scratches the surface of the real estate universe. But it gives you a good, general idea of what it’s like.

“Buy one investment house a year for 10 years, and then buy the house of your dreams for cash.” — John Schaub

And that’s it for today!

  • The two best ways to get rich are entrepreneurship or real estate.
  • What principles you need to know before buying a house.
  • What principles you need to know before renting out a house.
  • What are the next steps you need to take if you want to further your real estate education.
Thanks for reading! 😊If you enjoyed it, test how many times can you hit 👏 in 5 seconds. It’s great cardio for your fingers AND will help other people see the story.You can follow me on Twitter at @richardreeze to find out whenever others just like it come out.📚 Do you like books? If so you might enjoy my latest obsession: 
Most Recommended Books.📚

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Richard Reis

"I write this not for the many, but for you; each of us is enough of an audience for the other." - Epicurus https://www.richardreis.me/