Investment for beginners

35% Of The US Population Are Renters — Why This Is An Opportunity For You?

Why Inflation Is Your Best Friend When It Comes To Real Estate Investments
In the mid-19th century, life expectancy was about 40 years. In 1950, that rose to about 65 years. Today, that life expectancy has grown to about 81 years, and it continues to go up. We are having longer retirements than ever before in history. Medical science progressing at the rate that it is, those retirement years are going to stretch even further! We are living longer, healthier lives than ever before, so shouldn’t your financial health reflect this? Here’s how you can ensure it.

It is never too late to invest in real estate.

I have in the past connected with Warren Buffet, and we have communicated now and then since. Now this financial whizz isn’t known to be a big investor in homes, but even he saw the wisdom of buying single family homes in the aftermath of the 2012 recession.
If you think that this is something you should have started when you were younger, let me tell you, you can start to invest in real estate at any age. We have had people that have started the process well into their 70s or even later. There is the story of Mindy, a school teacher who bought a rental home in her 50s. She finished paying for her 30-year fixed rate loan in 16 years, so now at 70 she has free and clear ownership of a property that earns her a steady passive income from rent. There is also the story of Brad who lives in the San Francisco bay area. He started investing in the 1990s, ended with 16 homes in the Phoenix area and retired early!

Invest in the Sun Belt states.

About 35% of the US population is renting – that is over 110 million people! A massive potential for passive income right there! For a number of reasons the sun-belt states suggest themselves as the places with the best growth potential right now. In these areas, the larger metropolitan areas with a lot of commercial activity are great choices.
This is where young professionals and their families are coming to work, where they are looking to rent properties, live, study. So if you want to make the wise decision to invest in real estate, I always recommend single family homes in good areas rather than apartments or condos. You are setting up your present as well as your future.

Let inflation be your friend.

Usually inflation is a bad word, but not when it comes to real estate investments. Firstly, I recommend the 30-year fixed rate loan – and that you make the lowest down payment possible. While your outgoing seems high right now, after some years it will be roughly the same as a nice dinner out somewhere. While your loan repayment amounts remain the same, your rental incomes go up over the years because the cost of living (with inflation levels) goes up!
So, what size of home should you buy? New or pre-owned? What type of property is going to fetch you the best rental incomes and what will appreciate over the long term? Who will manage properties so far from where you live? I have the answers to all those questions and more. Check out this video where I answer some of these vexing questions – and more.
inflation and real estate investing

Workforce Millionaire

ICG 1-Day Live Expo 12-5-20

ICG 1-Day LIVE Online Expo–Sept, 12, 2020

Adiel Gorel: Updates. Covid-19. Strategies. Financing. Interest Rates. The Economy.

Raleigh-Durham: New homes in the Research Triangle. Jan Wynns

Oklahoma City: New homes. Great Areas & Cash Flow. Low taxes. Joe Pryor

Orlando & Tampa. Growth corridors in Central Florida. Space Coast. Jean Gillen

EXPERT: 1031 Tax Deferred Exchange and Reverse Exchange. Weiming Peng

Atlanta: New homes in Atlanta Metro. Tyra Connor

Jacksonville: New homes in Jacksonville & Ocala. Brian Scrone

Baton Rouge: New homes, High Rents, Growth. Michelle Ruston

EXPERT: Insurance as 1st line of defense for the RE investor. Joyce Feldman

EXPERT: Tax updates and optimizations for investors. Joshua Cooper, CPA

Adiel Gorel: Recap of day. Extensive Q&A. Covid-19 . Loans. Inflation

The Best Real Estate Investing Advice Ever

I was interviewed by Joe Fairless on his Podcast “The Best Real Estate Investing Advice Ever”.

You can find my interview on Joe Fairless’ podcast website:  https://joefairless.com/best-ever-show-2/

My interview can be found under:  JF2152 or via a search on my name.

The interview title is:

JF2152: Which US Markets Shine for Rental Homes and Why With Adiel Gorel

Joe was a great interviewer, and I enjoyed our talk. I didn’t only discuss the best markets. I talked about the awesome power of the FIXED 30-year financing we get only in the U.S. (it doesn’t exist in other countries, to the best of my knowledge).

Getting a mortgage with a fixed rate means inflation becomes your best friend, as it constantly erodes the real value of your monthly payment, as well as your loan balance. You usually don’t have to wait for 30 years. About half way through the loan term, the balance of the loan usually looks like a joke, and so does the monthly payment. I go into more detail about this important (and overlooked) point in articles I had written, in my books, and in my television show, the PBS Special “Remote Control Retirement Riches”. I’d be happy to send you the articles, as well as a link to the PBS show. Just email us at info@icgre.com.

I talk about the future financial transformation that buying new single family homes as rentals in the right markets. You buy in a good area. Local brokers help you and local property managers handle the home for you.

Over the past 35+ years, thousands of investors have bought over 10,000 rental homes in the best markets in the country. We have people from across the ocean investing as well. Clearly, the idea is that local managers do the heavy lifting for you. Now you can be as busy as you probably are, and still build a future-changing portfolio.

We started with me as a busy Silicon Valley engineer. I needed managers to handle the properties for me. Now they help you as well.

Joe asked me towards the end about losing money. I forgot to tell the story of how I “lost” money by simply having to learn the “art of doing nothing”. It took a few recessions for me to finally learn that when a recession is in progress, the best action for the owner of a rental home to do is “nothing” (the hardest thing for us to do , or “not do”).

Until I learned how to do nothing, I got rid of homes during recessions, and while that was not a direct loss, it prevented me from benefiting from those homes in the future, to the tune of a lot of money.

I enjoyed the interview very much, and I hope you find it useful. I hope it can change your future.

May 16, 2020: 1-Day Online Expo

 

Adiel Gorel: Updates. Covid-19. Strategies. Financing. The Economy.

Tonya Debnam: Raleigh-Durham: New homes in the Research Triangle. Tonya Debnam

Joe Pryor: Oklahoma City: New homes. Great Areas & Cash Flow. Low taxes.

Jean Gillen: Orlando & Tampa. Growth corridors in Central Florida. Space Coast.

(EXPERT) Mary Joe Lafaye: Create reserves during Covid-19 w Reverse Mortgages.

Tyra Connor: Atlanta: New homes in Atlanta Metro

Brian Scrone: Jacksonville: New homes in Jacksonville & Ocala

Michelle Ruston: Baton Rouge: New homes, High Rents, Growth. Michelle Ruston

(EXPERT) Joe Merante : Make sure your credit does not suffer due to Covid-19

(EXPERT) Brett Lytle, Esq. : Asset Protection, entities. Covid-19 Risk avoidance.

Adiel Gorel: Recap of day. Extensive Q&A. Covid-19 Loans. Inflation.

Adiel Gorel on April and May 2020 Rent Collections

 

Adiel Gorel on the Online ICG 1-Day Expo

For more information or to register go to https://icgre.com/events/icg-real-estate-1-day-online-live-expo-saturday-may-16-2020

Banks’ Loan Forbearance Under The CARES Act

Tenants, Stimulus, and Inflation

One of the worries landlords have these days, is that due to the Covid-19 situation, some tenants who may lose their job, will be unable to pay rents.

We have already addressed this (banks also allow leeway in mortgage payments etc.). However one point to consider is the following.

Unemployment benefits have been beefed up aggressively by the government. Once people who are unemployed or partially employed start getting their unemployment benefits (hopefully any minute now), and due to the enhanced payments, many people will earn about as much as they did while they were employed. Especially in the median income territory, where a lot of our tenants live.

This is something to consider, as the fears may have been over-blown. The unemployment payments are slated to be serious, and make a big difference. The idea behind them is that unemployed or partially employed people, could pay rent, buy food and gas etc.

On the issue of the government stimulus overall, the US government has just come out with a stimulus of over 2 trillion dollars. The Fed is also injecting liquidity into the financial markets, to the tune what appears to be 4 trillion dollars. The Government is already seeking a second stimulus (possibly having to do with massive infrastructure once people can be out and work), also seemingly to be about 2 trillion dollars.

With all these trillions of dollars essentially just being “printed by the government”, any economist will tell you that it will very likely create inflation. Possibly a strong one, once things are recovered.

At the same time, interest rates are close to being the lowest in history.

Once again, you can buy a single family home now, with a 30-year fixed rate loan at maybe the lowest rate ever. Then the home price is likely to go quite a bit higher just due to inflation (not even counting real appreciation). The mortgage does NOT go up with inflation, of course. Thus, as I always say, the 30-year loan gets eroded by inflation, and your equity gets built up faster thanks to inflation. Hard assets benefits during inflationary times, and are usually the safe havens investors go to. Single family homes are not only a hard asset , but an undeniable necessity (as opposed to office buildings, for example, since people can work from home. From HOME! Yes they need a home). Also, they are the asset class on which the fixed rate loan, which never changes with inflation for as long as 30 years, can be obtained.

When inflation hits hard, you will likely feel pretty smart having bought single family home investments, with fixed rate loans.

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