According to Ido Fishman, having a few investments in the stock market can be a great thing for you. It could in fact prove to be the key for your financial success in the future. That being said, you really have to be responsible about it and should also focus on starting it in a way that gives you as much advantage as possible.
In addition, most of you have probably given real estate investment a thought some time or the other. It is arguably the best way to secure your finances. Some experienced real estate investors would even go as far as saying that it is the best tool for making investments out there.
The Real Estate Investment Landscape Is Full of Opportunities
Ido Fishman time and time claimed that he was completely convinced that investing in real estate is perhaps one of the best ways to lay down a foundation that will give rise to an independent financial future. In case you know a little bit about traditional forms of investments, you will know that there are several major advantages associated with them especially during the initial stages.
That being said, traditional forms of investment, no matter how convenient and easy they might seem initially are often misunderstood. You will be surprised to find out that things could go wrong with them pretty easily. Therefore, if someone does not have any knowledge regarding real estate investment, it would be a wise choice to stay away from it. Ideally, you should take as much time as possible to learn how real estate investment works. Take inspiration from people who have ample amounts of experience in this field (like Ido Fishman). Once you learn the small intricacies behind it and find out what you need to do in order to become a successful real estate investor, only then should you proceed with it.
In case you have not dipped your feet in the real estate investment river, you may be surprised to find out that there are tons of cases where people make massive sums of money who started from nowhere. Some real estate investors even started while being under serious debt. However, through smart trading strategies, and clever implementation of them, not only did they eliminate the debt they were in, they also ended up becoming millionaires in a matter of weeks and in some cases, days.
Ido Fishman – Fresh Take on Real Estate Investing
This article will thoroughly discuss the take of the one and only Ido Fishman. He has been in the real estate business for a long period of time and earned massive profits through his smart ways of making investments. As a matter of fact it would even be fair to say that a major chunk of Ido Fishman’s fortune is there because of his success with real estate investments. Therefore, it would be highly recommended for any real estate investing enthusiast to give this article a thorough read as it will point you towards the right direction of where you can get started and how you can start earning a considerable sum of money by making smart real estate investment decisions.
Beginner Real Estate Investing
As mentioned earlier, Ido Fishman has an abundant amount of experience with real estate investment. He has flipped his fair share of homes and also made investments in the construction of newer ones time and time again. As of now, Ido probably owns more than 40 single family homes, all of which are paid off.
First of all, real estate investment is a game of extreme patience. No one, not even Ido Fishman would have made it so big without making a large amount of sacrifices, patience, and deep knowledge about the field of real estate investing. Moreover, you have to prepare yourself for mistakes as they happen a lot of the time. If you think that all of the real estate investing greats reached their heights without making mistakes, think again. Even Ido Fishman has time and time again testified to the fact that there will be a considerable amount of mistakes in your real estate investing journey. Therefore, it would be wise to learn from them as much as you can. Only the people who learn and take lessons from the mistakes they make with their crypto currency dealings end up in a respectable profit earning position in this field. If you take the mistake to heart, you will never learn or improve. People who take things like these to heart often lose their will to make investments again and end up leaving real estate investing altogether.
Therefore, as Ido Fishman says, grow a thick skin and prepare yourself for good times as well as bad times as the world of real estate investing is full of them. Let us get a little deep into the basics and essentials that are involved behind real estate investing. There are some prevalent misconceptions that we will discuss down below. Learning about these misconceptions will help you to avoid a ton of mistakes and clear out a large number of obstacles from your trading journey. This will also allow you to make wise financial decisions regarding any property that your plan to buy for the purpose of investment or even buying for yourself.
Getting Acquainted With the Numbers Game
You will be surprised to discover that there are a plethora of concepts and rules that will most likely change the way you perceive real estate. Most of you might probably have heard of this somewhere or the other, however, the most vital rule that most of the top real estate investors follow, is the one percent rule.
As soon as you learn how these concepts and rules work, you will notice that real estate investing is not as intimidating or difficult as it may have initially seemed to you. The rule will give you the ability to monitor and understand the various prices of different kinds of homes in an instant. You will also find out whether you are getting the house for a good price or if you are overpaying the money. You can use this ability to your advantage to get the best possible deals for ther houses that you plan to buy.
The 1 Percent Rule
Ido Fishman has been talking about the one percent rule or as long as he could remember. It is what gave him the success that made him into a financial success that he is today. With that being said, the one percent rule is essentially this – any property that rents for a minimum of one percent of its acquisition cost, that property could be considered to be a good investment. In addition, the acquisition cost also takes into consideration the remodeling or various other costs that are involved for preparing the house to be ready to move in.
It is important to keep in mind that the 1 percent rule is essentially a rough estimate. As soon as you figure out if any deal will turn out to be good, you will perform some more research and take a closer look into it. You will also go to all the depths necessary to be equipped with all the necessary information to give you a fair idea of the actual expenses and income. It will give you a proper estimate regarding your potential future ROI (returns on investments).
The High Costs Associated With Living Areas
One of the biggest mistakes that real estate investors make is that they do not take into consideration the high costs associated with a large number of living areas. Sure, the properties that they come across could be cheap but there are tons of things that should be taken into consideration before actually buying the property. One of those things is the high cost of the particular area the property is present in.
Let us say for instance that you buy a certain house for 100,000 Dollars, however, you loan it out for just 10,000 dollars per month. Do you think that it will make up for your initial investment? certainly not! This is where the one percent rule will come into play. Sure, you will reach the point of breakeven after a few years, but that is a significantly long time, long enough to make you feel that the deal you made was not worthwhile at all.
The Myth that Surrounds Cash Flow
A large number of people who invest in real estate already own a rental property of some kind. In most cases, these people think that they are getting decent money form the property that they own. Sure, it may seem like it, but in reality, they could be earning a significantly higher amount of money than what they are currently getting.
In order to get a better understanding of this concept, Ido Fishman talked about his second favourite rule in real estate investing, and that rule is the 50 percent rule. So what is the 50 percent rule? Well, here it is. The 50 percent rule is essentially approximately fifty percent of the total rent that you get on a single family. If fifty percent of the rent goes into expenses, it will fall into the category of the fifty percent rule.
There are tons of examples that surround the fifty percent rule, these examples are property management, capital expenditures, HOA, repairs, insurance, and taxes. There are tons of other examples but these are the ones that stand out the most. It would be also important to keep ion mind that mortgage payments are not a part of the fifty percent rule.
The sum of money that you end up bringing to your home which you consider as cash flow or extra income after paying the mortgage and after fifty percent. A large number of people tend to ignore the fifty percent expense whenever they talk to someone about what their actual cash flow is. This does not in any way mean to imply that they are hiding it from them, in most cases they actually forget it or simply are not aware about it.
Setting Realistic Expectations for Your Investing Journey
Now most of you up and coming real estate investors will be thinking about finances. When will we talk about them? What do we have to do in order to own a investment home?
Well, as we discussed earlier, Ido Fishman is a proud owner of a large number of single family houses. He said that telling people to start paying of their mortgages as early as possible is not the right way to go about things. However, it does have several advantages that surround it.
Ido Fishman did extensively talk about things that he considered to be irresponsible or aggressive in the world of real estate investing. He said that it would be a wise choice to start investing in real estate when you are financially strong. Your finances should be in proper order before you dive into the world of real estate investing. Now you may be asking yourself, why is that so? Well, if you think about it, the answer is really simple. Real estate investing, although as lucrative as it can be, does sometimes prove to be a fairly risky endeavor. People tend to invest a considerable sum of money to a property even if they do not have any back up money to feed their families and keep their houses running. Ido Fishman says that this is never a wise thing to do as you never know what is wrong with a certain property.
Sure, you may check it as thoroughly as you want to and it may initially seem that the property will end up earning you a sizeable sum of money. However, sometimes even the best tend to miss out on small details that end up costing them big time in the long run, especially if they do not use their money wisely.
Although these tips may seem basic, they will make all the difference in the world. They worked for Ido Fishman and they will surely work in your favor as well.