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Are You a Real Estate Investor or a Speculator?

Are you a real estate investor or a speculator?

A real estate investor uses education and skill to make sound investments with substantial returns. A speculator invests with the hope that the investment will actually work and make money.

A real estate investor understands that money is made when you buy, while a speculator gambles on hoped-for future appreciation (or other miracles).

Sometimes a speculator gets lucky and makes money, but the real estate investor sleeps much better.

Speculators Often Die Broke

speculatorOh, it might be more fun to be a speculator…. More action and excitement as you wait to get rich or go broke.

Think back in history to the Gold Rush of the 1840s. Thousands of speculators went to California to get rich. Some did, but the majority sat cold and wet on a mountain and died penniless.

Today’s speculators are sitting in bars crying in their drinks over what “could have” been and the money they “could have” made, while savvy real estate investors are looking at the slowdown as an opportunity that comes along once in a lifetime.

The savvy real estate investor understands that the slowdown of the real estate market creates an unprecedented level of foreclosure properties and a huge opportunity.

In today’s market, you must have the knowledge and skills to be in the game. So please, don’t speculate when buying properties. Don’t count on appreciation to realize your profits, because it may not be enough, and it may never happen.

Acquire the Skills and Learn the Ropes

The golden rule when buying investment properties is to understand the exit strategy. You need to figure out all the holding, selling, and repair costs, and the deal needs to make you money even if the market stays flat or goes down a bit.

In addition, I advise you to learn how to buy houses without using any of your money or credit, since that will further minimize the risk and increase your investing leverage. You’ll be able to buy more properties with no risk and create wealth more rapidly.

So you really have two choices: acquire the skills and learn the ropes… or don’t play. You are better not playing–than playing with fire!  One “speculative” decision may put you in a position where you risk your credit, money, or even your assets.

It’s a mistake not to play at all.  You would miss out on one of the best times in history to create wealth in real estate. The opportunities today are endless.

I say, jump in, learn the ropes and get rich. The wealth you can create over the next few years will change your life forever.

You need guidance, you need knowledge. You’re on the right website so dive in and read, study, and implement. You’ll do well!

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About the Author...

Marko Rubel is a leading authority on creative real estate investing, specializing in pre-foreclosures. He is known for creating automated systems that enable investors to skyrocket their profitability quickly.

He is an active, full-time investor who has bought and sold more than 300 properties. Using his proprietary automated systems, he earned profits exceeding $1,000,000 in a single year, while working only a few hours per deal.

His web site is MarkoRubel.com, and he is also the host of the Real Estate Investing Forum at CREonline.com.

Comments

  1. Barbara Williams says:

    This article was very informative. I have fully enjoyed the wealth of information that is offered by you. I am new at this and don’t want to go in blind. I am a 50 year old, single woman/mother of 4 adult children and have been trying get back on my feet after being terminated from my job in April of 2010 for missing too many days when I was hospitalized with a blood clot in my lungs. Now working at McDonalds, earning minimum wage, many medical bills, am about to have surgery which will have me off work for a minimum of 3 weeks and I’m tired of working for others, making them rich and being paid pennies. I truly appreciate the help, information and willingess to share this education and experience. Please keep the info coming.

    Thank you

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