Being a Landlord

Buy Commercial Real Estate?

Want a good way to build wealth? Own commercial real estate. But only if you are willing to undertake due diligence that may not be readily available online, make a big hands-on commitment to mind the investment and exercise enormous patience.

Real estate is one of the largest asset classes in the world. The family home is the largest asset many middle-class Americans own. And real estate makes up a significant portion of the net worth of many wealth accumulators.

Your IRA and Rental Homes?

A lot of investors are tempted to become landlords nowadays, sinking their retirement funds into rental property. Resist the temptation. The landlord business is risky, capital- and labor-intensive. There are more efficient ways to profit from real estate.

Real estate is a great investment right now, and my firm is currently increasing exposure to this sector. It might seem that becoming a landlord is the best way to profit. In the wake of the housing bust, credit for homeowners is scarce, leading many to ditch the American Dream for a rental apartment.

How to Be a Landlord

So you want to be a landlord? Owning rental homes can be rewarding financially. It also comes with a lot of headaches.
Landlord. The very word implies wealth, authority and status. Maybe that's one of the reasons there are so many books and seminars claiming to teach you how to build wealth by owning rental property.

Your Home Is No Investment

Many believe their house, even after the real estate bust, is an investment. Unless the property produces rental income, it isn’t. Just because something costs a lot doesn't mean it is an investment. An investment is something that pays you money.
For most families the largest purchase they make is their house. It is crucial to understand how to consider real estate holdings in every aspect of wealth management, from asset allocation to retirement planning.

Opportunity: Be a Landlord

While housing prices are still well off 2008 levels and likely won’t recover for some time, you can make good returns investing in real estate. How? Buy a foreclosed house and become a landlord.
Purchase these single- family homes on the cheap, on your own or as part of a private partnership investment (it may require you to put up $100,000). Not to be left out, some publicly traded real estate investment trusts are also eyeing foreclosure plays, a way for you to be a housing landlord indirectly.

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