Investing in Real Estate For Beginners

Investing in Real Estate For Beginners

If you have got some extra money, you must
buy a property. Investing in real estate is the best and safest
option. Regardless of what happens, properly prices
will rise anyway and you will still make a profit. Isn’t that’s how people talk about real estate. Unfortunately, that’s not entirely true and
if you ask anyone who invests in real estate, he gonna tell you should think twice before
you throw your money in. That doesn’t mean you can never make money
by investing in real estate but rather there are many hidden rocks that most people aren’t
aware of that might lead you to lose money. do home price always rise? Not really, let’s just take a look at some
numbers. According to NAR, for 36 years from 1968 to
2004, home prices did actually increase on average by 6.4 percent which is good, at least
its much higher than the inflation rate. Unfortunately, that was the last year of healthy
growth. The market suddenly declined and in the following
year, the growth was just 1 percent which is not that great. And we all know what happened then, in 2008
the market crashed, home prices just kept declining year after year. In fact, they fell by more than 30 percent. It took some time for the market to bounce
back, but that healthy growth never came back. since 2010, home price didn’t really increase
if you take into account inflation. however, some people still say that. Even if the prices do not increase much, just
rent it out and collect the payment every month. and in 20 or 30 years years, the rent should
pay off your investment and you still end up with a property that you can keep renting. What a brilliant strategy. Unfortunately, it’s not as great as it sounds. First, you won’t rent it out for 25 straight
years, because tenants come and go and there will definitely be periods where your flat
will just be empty but it will still keep draining money out
of you, it will be like a hole in your wallet. Secondly, real estate isn’t the type of investment
where you just buy and forget about it, it needs maintenance, it needs renovation. And in my experience, people don’t really
take care of a rented property as much as their own. So you will have to renovate it more often
than if you would have lived there by yourself. In other words, your real estate investment
will never pay off, unless you sell it. Even if the value of the home rises, you are
just getting richer on paper. you have to sell that property to materialize
that wealth before prices fall down again. Even after these 2 arguments, some people
still say that it doesn’t matter, its mine, I will just go and live there by myself and
when I will not be around I will just rent it out. In my experience that’s a horrible strategy. because when you buy that home, you buy it
base on your own needs that usually don’t correspond with the needs of the market. so what ends up happening is that you bought
it for yourself and now it’s difficult to rent it out so it just stays there as a liability. Owning a property that you don’t live in
and you can’t rent it out is a pain in the ass. That’s another reason why a lot of people
lose money when investing in real estate because they are not investing, they are just buying
a property thinking that as long as its real estate, its an investment. And lastly, real estate is one of the brutally
competitive industries out there, because it’s one of the oldest industries in history. So to find a good investment, you don’t
only have to know and understand the market deeply, but rather look at hundreds of options
before throwing your money. If you haven’t been in real estate business,
you have no idea how much time and effort it takes to find just one good opportunity. So if you are thinking that, whatever property
you buy, you will be able to rent it out, on the top of that, its value will definitely
keep rising, you are mistaken, my dear friend. And for god’s sake, please do not misunderstand
me and bombard me with comments. You understand nothing about investing, you
just lost money and now you are just preventing others to make money. Yes, I have actually lost money in the real
estate when I just started but I have made much more than I have lost
and the point of the video is to clarify some of the most common misconceptions. So that if you ever decide to get into this
industry, you know what you are dealing with. Anyways, if you found this video helpful,
make sure you smash that like button, subscribe and hit that bell button because more videos
about investing are coming. Thanks for watching and until next time.

69 thoughts on “Investing in Real Estate For Beginners

  1. First comment

  2. why so addict in 1st comment??

  3. Maintenance of property is a pain in the ass

  4. 💪🏼Seriously it would be great if more people were interested in self development like everyone here!!The world would be different!!Have a brilliant day everyone!

  5. In some cases investing in real estate may be the best option for you, get independent financial advise from a reputable advisor

  6. You should make a debate-video with graham stephan

  7. Next video: "Why You Should Never Invest"

  8. Looks like you have no topics. You are making videos which are opposite of you previous ones.

  9. Next video: "Why You Should Just Die Right Now"

  10. 4:19 when people is not open minded an still don't understand they will say anything to back their believe obviously! so you will be right an they still give you wrong just because you oppose their believe💯 typically reactive thinkers on a proactive thinker channel

  11. Strong point💪
    by the way, the announcer seems really kawaii

  12. The moral of the story:
    Don't jump on a bandwagon, before really knowing what you are doing.
    Always do a thorough research before flashing with the big bucks for investment.

  13. It is a real shame you have looked at all the features of real estate investing and put a negative spin on it. Real estate is a tried and true way to wealth. It can be done wrong, it can be done right.

  14. Garbage video . Every investment involves some type of risk.

  15. When pointing out a problem, it is much better to have the solution.
    It's your second video that does not make sense.
    You're looking at one side of the coin brother
    Summing up Real Estate in your 5 min video and coming up with your conclusion makes me laugh.
    I hope people toke your videos lightly.
    I am not hating but get your stuff together and stop pointing out the problems, propose solutions or at least show both sides of the coin

    cheers mate

  16. Personally I Think You Are Wrong, You Should Have Considered The Location, Here In Africa, Renting A House/Room It A BiG Deal, The Price Grow Each Year, Talents Are Forced To Pay Or Leave Because Someone Is Ready To Pay,

  17. You should Make a skype debate with graham stephen. It would be really cool to see both the sides of perspective.

  18. Title does not represent your conclusion imo

  19. Great video..
    Watch the videos on my channel too

  20. These clickbait titles starts to become anoying

  21. It is a pain after hearing all this. Then I remember staying at an airBnB where the owner actually renovated the house where one room is theirs and all the others are small boarding house size 1 person bedroom and the bottom floor have a 2 person bedrooms.

    There were like 7 or 8 tenants all together with a couple of Airbnb. People living in your house that they’re paying for. Lol

  22. I usually really enjoy your videos and more objective view of "typical" ways of thinking, but this is sub par compared to your others. It seems like you're trying to dissuade the "average" person from real estate activities with highlighting only negatives. I agree, one needs education before putting money into anything but that's not suggested here. If anyone is interested in INVESTING in RE and not just speculating on appreciation, find good information from professionals active in the field. Keep learning. Not bashing you- just constructive criticism.

  23. Just watched a video on how you should 😂

  24. Great counter arguments to those real estate die hard fans

  25. What you say is totally wrong . Before you start you need to have a well Financial Education if you read Rich Dad Poor Dad if you listen to Rich Dad Radio Show you will understand how to make millions of dollars by rental properties . And useing good debt . You say that is bad strategy it is not bro you need to search more and have good financial education . The real estate gives money evrey month to start a business or even quit ur job.
    Bro search more before you do this type of videos and plz for evreyone who read this learn well about Financial Education and you will know evrey think . When you know no more risk will be

  26. You don't have to sell your property to make your money back, you can just refinance your mortgage

  27. I know the clickbait makes this seem pessimistic but as someone who loves real estate and has success in it I agree with a lot of these points.

    You have to know what you are doing before you start

  28. Your title is clickbait. Your conclusion is not that revolutionary: consider the risk, do your due diligence, then invest. But then you put a title called "Why you should never invest in real estate" and then wonder why people comment against you.

  29. My father is a real estate agent and he hardly makes ANY MONEY, he makes about 3000-3500 dollars a year.

  30. That's some grade "A" bullshit. One can invest either knowing what he's doing or not and it works with every type of investment
    So I think you're exaggerating

  31. Hey can you make a video on how to start a business at an young age.

  32. Look, I love your videos, But trust.. when I say this, I know 100s of real estate investors & 99% of them do not invest in real estate for capital gains.. they invest for cashflow..
    We as real estate investors do not give a damn about the re-sale value of property, It doesn't matter if it goes up-down-sideways.. fck it.. It simply doesn't matter. You want capital gains ? Go to the Stock Market.
    Last but not least, You do not profit when you sell.. you profit when you buy!

    Thanks 🙂
    Edit: Hey ismonoff, since you have hearted this comment I would like to add few more things,

    1) I can say with 100% surety that you have never experienced a cashflow deal of renting out a property to tenant cause it does not take 20-30 years for your investment to comeback, heck it never goes beyond a time period of 8 years if you know & are aware of what you are doing.. until or unless you have done a really sh*tty research of the location & property demand in the area.

    2) You can house-hack your property & turn it into a condo, student hostel, a mid cap mart, a cluster of shops, mid cap hotel etc. In real-estate the possibilities are endless.

    3) I am sorry, But You are doing a disservice to your subscribers by bad mouthing real-estate, cause if you know what you are doing & have little patience, generational wealth is guaranteed.

  33. "in my experience". You warren buffet?

  34. Real estate is hard to reinvest the profits to get compound interest

  35. Well, there are always risks when it comes to investments. So learn about real estate before investing your money!

  36. I don’t think I’m gonna invest in real estate, it seems that only the stock market, my side hustles, and any skills that I learn is gonna be my ticket to wealth.

  37. Really wish this was called, Misconceptions in Real Estate Investing instead of the actual title. Video makes good points but that title is just deceptive and kinda off putting

  38. If you're Australian and want a free $40 to start micro-investing in real estate, join here: (Yes, this is a referal link but no, you won't get the money unless you use the link. This offer will expire so join today if you want the money.)

  39. What to invest in 👎

  40. Wow . this is a shit video . But love your channel .

  41. Bitter motherfucker….you lost money because you sucked at it doesn't mean everyone will

  42. I have a suggestion for the title of the next video:
    "Why you should never become a millionaire"
    It's about as clickbaity as this one.
    I think it will do the job.

  43. Next video “why you should never have any money”

  44. Next vido: Why you should be an average person and retire at 65 with just barely $100k, especially if you're a minority.

  45. Until this video i was followed. Now im out. This channel will go down because one stupid video. I have excel file that show exactly how much profit i make from real estate and i make 15% a year from my investment. Good luck

  46. Says his experience.
    Doesn't give anecdotes


  48. I guess it's fine if you buy something you'd live in.

  49. , yes i agree with my brother😌😌😌😌😌🤗🤗🤗🤗🤗🤗

  50. , my little brother is so smart about different industries🤗😌😊🤗🤗

  51. , yes real estate can make you money or you can loose money,

  52. pointed the way you could loose monei in real estate, so persons can know the negative also, all industries have both benefits and potential moneiloosing.

  53. I think real estate is the long game and for someone who can buy multiple properties…’s not a get rich quick scheme it needs patience

  54. Use little positive title…like ( thing u dont know about real estate )

  55. Which software are you using to create this videos ?

  56. So your logic is “don’t invest in the real estate because the capital growth won’t keep up with inflation, instead keep your money in a savings account so that you earn even less”. The stock market is also off limits as you have to go ‘all in’ or not at all (as per your previous video) and the average person doesn’t have the motivation to go all in. I used to like your content but the last few videos have been not been thoroughly researched. A quick ten minute Google search would have revealed you can invest in an ETF of a stock market index with very little long term risk (or multiple different ETF’s to reduce this risk even further) and many people are able to at least make a better return than a savings account by owning investment properties. Of course as with any investment people can lose money but both of these videos imply that most people lose money when investing over the long term. This is not true.

  57. You should never invest in real estate if you don’t do your research. Unfortunately most people don’t do their research before investing.

  58. Plz make video on "how to find/think bussiness ideas"

  59. Thanks for sharing your favorite book I really like it👍

  60. Sources please

  61. I got it for $50k put 10 in it upfront. Spent $3000 in 10 years so I'm in it for $63K, but I collected #120,000 in 10 years and still have an asset worth $118,000 Yea! I crying all the way to the bank>

  62. Depends where you live, sometimes selling is a bad idea as the taxes will collect around 35% of your property

  63. Moral of the story.Nothing is easy even when it is real estate

  64. Then in what should I invest in
    If it's not
    Stocks or Real Estate????
    May be ur next video.. 😅

  65. Nice! Looking Forward To More Content. Liked Video 🙂

  66. I knew you lost money in real estate before you said it.

  67. I loved some of the tips you gave and have followed a couple of them. Nice work!

  68. This channel is making people billionaires.

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