A Millionaire Real Estate Investor’s Guide To Making a Good Investment

…Mey here blogging on a Thursday evening after enjoying a wonderful glass noodle tofu salad and a Thai curry shrimp (yum), chatting with old and new friends at a Christmas party, and now at home with tonight’s blog A Millionaire Real Estate Investor’s Guide To Making a Good Investment…

…if you are like the many people who want to invest in real estate then this post will help you figure out how to find a good deal…

…my friend who taught me this formula is a millionaire real estate investor…

…he follows this formula when he finds deals in Hawaii…

…so pay attention and use it for yourself!

8% Return Rule

…when the house we are living in went up for sale, I thought it would be a good idea to buy it…

…unfortunately, I didn’t have the capital to buy it (asking was $1,000,000+)…

…so I calculated what the cost would be and profit that would be made through renting and asked him if an investor would want to go in for half…

…he looked at my numbers and said, no, because the return was only 4%, and real estate investors will only put in big bucks if they are getting back at least 8% per year…

…so that’s when I learned the 8% return rule…

Calculate Real Return

…in order to figure out how much we would really make, I had a good grasp of the cost of maintenance and repairs, as well as other costs…

…a lot of investors in real estate start out without calculating all of the costs of owning real estate…

…that included the mortgage, the cost of maintenance and insurances, rental vacancy rates, cleaning up after tenants, eviction costs, etc…

…after calculating the real cost, you can subtract that from the rent, and you get your real return on investment…

…the only reason I could calculate it for the house I lived in was because I lived here so long…

…since it wasn’t a good investment, we didn’t buy it, and someone else did who is renting it to us…

…what can I say, not everyone makes good investments…

Conclusion

…hope you enjoyed this article…

…I’ve read stories of people who are now poor due to their bad real estate investments…

…be a smart real estate investor and work the numbers and do your homework!

…and if you like reading this article, write me a comment below!

…I loved writing it…

…actually, I love blogging about financial freedom…

…it’s a way to make money doing something that I love to do!

…if you want to learn how to make money blogging, then just CLICK HERE, watch the free video and get started =)