Are You In A Position To Invest In Real Estate?
By Paul Esajian on August 7, 2015
Is investing in real estate right for you? Does your current situation leave you wondering if residential redevelopment is the next step to take?
Everyone knows the perks associated with investing in real estate wisely. We know that when done right, it is one of the safest investments you can make. Yet, everyone is at a different stage in their lives. So are you having a hard time jumping into real estate investing because it is genuinely bad timing? Or is it time to kick the fear and excuses to the curb and get going to improve your situation with real estate?
Here are 10 situations in which people often second guess whether investing in real estate is the best move for them or not:
What if I am in the middle of a divorce?
Talk to your divorce attorney. Making new investments or buying any major new items can complicate divorce settlements. If this is your career or normal course of business, it shouldn’t matter much at all. This is just regular business income. Those separating couples that can amicably and quickly come to an agreement can normally have everything ironed out and finalized in a matter of a few months. So if you are just looking at getting into real estate, this is the perfect time to spend on learning more about investing, and scouting for deals.
What if I am in bankruptcy?
This varies widely depending on where you are in the process. With some types of bankruptcy, you can have just had it discharged and still qualify for an awesome mortgage loan. Your credit score may even be sky high if you have discharged debt. If you are in the process of filing bankruptcy, making big expenditures can obviously be a big red flag. However, there may be exceptions for those that have organized themselves as a business.
What if I owe back taxes?
Getting behind on your income taxes is never a fun situation to be in. However, most will find that it is easier to work with the IRS than they think. There are various settlement and payment options that can provide a resolution and get them off your back. The bottom line is that investing in real estate is not only often the best way out of the financial hole, but a great way to cut future tax liability, so that you don’t fall back into the same situation again.
What if I am not handy with tools?
Contrary to what you may see on reality TV, not all real estate is about home improvement projects. In fact, fixing up houses is just one of many real estate investment strategies. Wholesaling or turnkey real estate investing are both great options that don’t require you to lift a hammer.
What if I have bad credit?
Having ‘bad credit’ or a low credit score is a lousy reason not to invest in real estate. You really don’t need to use your personal credit to buy property, or flip it.
What if I’m in college or have student loan debt?
This is the perfect time to get started in real estate investing. Perhaps your investment activity can help fast track your college credits. Maybe an investment in student housing can make going to college even cheaper, or become a profit center. Invest early and you can pay off your student debt earlier.
What if I love design, but not crunching numbers?
If you love interior design, architecture, DIY, and renovating, real estate could be an awesome choice for you. However, there is no escaping the numbers. At least not if you are doing it for profit. The good news is that between a good accountant, bookkeeper, and a coach to assist with business planning, you really don’t have to be stuck in spreadsheets every day.
What if I don’t have the time?
If you feel that you already don’t have enough time in the day, you are not alone. In fact, that’s one of the main reasons that many start investing in real estate in the first place. Yes, you might have to put in a few extra hours a week at first, or cut back on other things to make real estate a priority, but once the rewards being kicking you should have both plenty of money and free time. If you don’t make the time now, you’ll never find it.
What if I already have a job I love?
That’s great. Whether you are already in another career you love, or dream of doing something else entirely, real estate can be one of the best ways to fuel your current passions.
What if I don’t have any extra cash or savings?
Having a down payment, reserves, or some emergency cash is great, but not necessary. If you haven’t been able to get money together any other way, then real estate is definitely the answer to this situation.