December 30th, 2011 | 
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Anyone who becomes a professional at their job has been educated to do so real estate investment is no different. Landlords believe they can jump into the rental property business without an education. If you do not educate yourself properly you will lose your shirt. You may even quit the business before you really get rolling. The most important principle to realize is that every inventor or even millionaire had failures along the road to success.
It is the people who press on and learn from these failures that really become successful. People are amazingly never taught this concept from our peers or parents. It is so important to know that most people do not succeed on their first attempt. Many people quit because they are never told this huge truth. Sports legends are another example of this concept. Peyton Manning, Quarterback for the Indianapolis Colts, was revered highly when he got drafted to the NFL. He really struggled his first two years, but then became one of the greatest quarterbacks to ever play the position. He failed but then learned from his mistakes and became a huge success.
The evidence is all around us, but we tend to ignore this fact. Real estate is the greatest investment because it always goes up in value over time. Commercial real estate is even better because banks will lend to you on the strength of the asset, not your credit strength. You are also able to leverage other investors money, and the bank’s, to get huge cashflows and appreciation over time. If you purchase a stock, you buy $1000 of a stock, that is its value. You could buy a million dollar property, with none of your money, and it could be worth 2.5 million.
The value of leverage is incredible, and allows you to create wealth through real estate using little or none of your own money. There is no other investment where the yield is so incredible. You can also make huge money partnering with other investors. They can use your experience and knowledge to find the deal, while you use their money to purchase the deal. It is a win-win for both sides. These are some of the many reasons why ido not know any millionaire or billionaire that does not have a huge real estate portfolio. Wealth is created quicker with commercial real estate than residential. If an investor flips house, it would take more houses to purchase and resell to build their wealth. If a commercial investor owns 30 large apartment buildings,the gains are a lot bigger for just owning the buildings. He also gets huge monthly cashflows, appreciation, and large acquisition fees at property takeover.
In summary, it is easy to see why the wealthy choose real estate as their number one investment. You can too, just make sure you educate yourself and do the necessary research about your niche.
