Hipster thinks real estate investment is the height of cool. Why? We approach investing as a way to connect with the things we love most – the things we really want to do. It’s an amazing feeling – owning property, letting it appreciate it, and getting real cash-flow from your work. Turnkey real estate investing has legs that take you from where you to be to where you want to go. That being said, it’s not always the easiest market to break into. The real estate investing world is flooded by gurus who promise you the world and who, in all actuality, deliver very little. The truth is simple: there is no simple, sure-fire way to become a millionaire tomorrow. If there was, Hipster would tell you allllll about it. The only way to get reliable cash-flow is to focus on it, to do what it takes to get it – not to find short cuts that leave you stranded. Consider today’s Hipster post a warning on what to avoid as you navigate investing’s choppy waters and hit some turbulence from time to time!
If It’s Not Cash Flow, It’s Not Worth It
There’s no point in having ten or twenty homes if you can’t make them work for you. Don’t get caught up in deals that don’t generate cash. Simple, but so important.
If It’s Too Good To Be True, It’s Too Good To Be True
Another simple one but don’t forget it. For example, Hipster loves turnkeys that come fully renovated – often with tenants in place. The catch? These amazing deals don’t go for amazing prices – they go for really, really good prices, but they aren’t too good to be true.
Pay Attention To Your Margins
If you can’t afford some loss – whether it’s a tenant suddenly moving out or a new repair that pops up – you’re not ready. You need to have some ‘margins for error’ to keep you afloat when things don’t go as planned (and sometimes they don’t). For example, at Hipster we use a very precise method for calculating costs on a property (check out some of our WAW posts to get an idea). We factor in the margins to ensure your estimated ROI is right on.
What Are You Standing On?
How’s the ground look? Is it firm? If it’s not, that’s a problem. Don’t balance on anything – be sure you have a firm stance. If you can’t comfortably move about with ease, you need to reevaluate. You shouldn’t get into a deal that makes things so tight you can’t move. Deals help you grow – they don’t squeeze you in or put you in a box!
Real estate investing is exciting. It’s glamorous. Best of all – there’s the potential to bring home some serious cash. Hipster says this: the hip way to invest is to focus on what’s most important : sustainable cash-flow. Forget the glitz. Ditch the glitter. Invest in a calculator, not a guru.