Thinking of Getting started in Real Estate this 2014? The Five Best and Worst reasons to Invest

[Corey Dutton]

I just love this recent blog post by Ryan Moeller, "Five Best and Worst Reasons to Invest in Real Estate", so I want to share and highlight some points from the post in this discussion.

We can all think of the most obvious reasons why one would want to get started in real estate investing, e.g. wealth, cash flow, etc. But the less obvious is why you wouldn’t want to invest in real estate. Or better put, what are some of the worst reasons to get involved in real estate investing? I like the way Ryan Moeller lays it out in this article, so I will share some of the main points here. But I encourage you to click on the link below and check out the entire article and then come back and comment below.

What are some of the worst reasons to invest in real estate? My two favorites are the following:

1.“The News Says My Market is Hot” – If the news is picking something up, it’s usually already passé. Invest in your market because of opportunity, wealth creation, or cash flow. Don’t invest because the market is hot and you probably should.

2.“If I Don’t Now, it Will Be All Gone” – This is a scarcity tactic used by good salespeople to make buyers think if they don’t buy now, they will lose out big. Don’t buy simply because you feel this. Look at all of those who lost out big because they invested right before the meltdown in 2008. Don’t you think they wish they would have waited instead of succumbing to the scarcity mindset?

If you’re thinking of getting involved in real estate investing this year, I encourage you to check out this article and enjoy the read. Find it on Moeller’s real estate blog here: http://www.realreturnrealestate.com/?p=740&option=com_wordpress&Itemid=125

Do you agree, disagree with any of the points presented in the article? If I would add anything, I would also add the following “worst reason” to invest in real estate. And that is, thinking you will have so much more freedom and time because you can quit your day job. Real estate investing is a lot of work and those who know will agree with me on this. It’s a full time job and a big commitment so make sure you’re ready and don’t invest because you think you’ll have more freedom! That’s not a good enough reason in my opinion.

What would you add to this list? Please share.

Posted by Corey Curwick Dutton