If you’ve been listening to the podcast for a while, you’ll know that there are numerous ways to invest in real estate. However, there is one destructive investing mistake you can make.
On this episode of Investing in Real Estate, I’m sharing the worst way to invest in real estate. I’ll explain two examples of the worst way to invest, and how you can get in the right mindset to start earning a passive income.
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I talk to a lot of investors, and one of the things I always ask is how they purchased their first property. I find that many people end up holding onto a home that they used to live in, simply because they love the property.
For instance, I recently spoke to a couple based in Philadelphia who owned one property. It was their first home, and when they had to move, they couldn’t bare to let go of the house.
When I asked them about their return on investment, they said they were in the process of paying down the mortgage, and that they were basically breaking even. They projected that they might begin to make a profit in ten years.
This is a huge red flag for me; the whole point of investing is to make money! If the return on investment is low or non-existent, it’s simply not a good investment.
This is why the worst way to invest in real estate is emotionally. When you invest in a home or a neighborhood solely because you love it, chances are, it’s not a profitable investment.
On today’s show, I’ll give another example of emotional real estate investing. I’ll also discuss the importance of being honest about the numbers in a deal, the disadvantages of emotional investing, and how you can get started achieving financial freedom.
We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- What should you do if you want to keep a property that isn’t profitable?
- How to release emotions and focus on the numbers.
- The one metric that matters in real estate investing.
- And much more about buy and hold real estate!