MAPPING OUT YOUR ROAD TO WEALTH . . .

Wealth means different things to different people.   I was watching Oprah’s Big Give show when it was on, and they introduced a family who had lost the father tragically and they were concerned about being able to keep their home.  The mother described it as their dream home.  Now from what little I could see, it seemed like a modest 3 bedroom 2 ½ bathroom home that may have cost $200,000 in a well kept middle class neighborhood.  Yet, this was their dream home.  It may not be yours or mine, but that just proves my point that wealth is relative to the individual.

It’s your job to determine what your wealth goals may be.   What sort of lifestyle would make you happy and content?  It doesn’t have to be lavish or it can be right out of the pages of a luxury magazine.  Whatever it is, you need to write it down.  Not just say, “I want to make lots of money.”  But actually put down a number.  You can’t help yourself and no one can help you reach that goal unless it is very specific.  My husband has a hard time with something like this because he feels like he’s bound to that number.  Your dreams and the actions you take to fulfill them are flexible.  The number can be three thousand dollars today and you can have a new baby and that number needs to change to four thousand dollars.  You could lose your job and that number could change to eight thousand dollars.  You need to pick that number and write it down today!

And then you need to write down what that monthly dollar amount will afford you.  Will it allow you to pay down debt?  To quit your job?  To buy a new boat?  To take exotic vacations every year? To pay for your child’s college education?  Be specific in what your goal will realistically afford you and modify it as needed.

Now it’s time to start thinking about how you’re going to get to that number.  Being wealthy means you need assets that are passively generating enough income to meet your target dollar amount.  If that amount is three thousand dollars per month and your bills are paid and you have the life you want, then you’re wealthy in my book.   I believe in following a layered investment approach.

You should have stocks, bonds, etc.   Real estate investments, however, will give you the passive income on which you can actually live.  When the media compares investing in the stock market and investing in real estate, they are comparing appreciation of the value on both.  Appreciation is nice, but you can give me cash flow any day because in a down market as many investors and home owners are currently experiencing, paper profits can disappear quickly.  But cash flow from rental income, commercial leases and note payments remain a lot stronger in a down market.

So you know real estate can provide you with the wealth you seek, now you’ve got to pick the type of real estate investment on which you’ll focus. Below are some of the most common strategies, but do know that there are combinations and twists to each one of these:

• Buy and rent residential property (Single Families to 4 units)
• Buy and rent apartment buildings (5 Units and more)
• Buy and lease office buildings, strip malls and commercial space
• Buy mortgage notes
• Invest with a group in any of the investments noted above(TICs, Syndicates, Funds, etc.)

Now become an expert in your chosen investment field.  Read as many books, study guides and articles you can about that investment type.  Invest in your education so that you can save yourself thousands of dollars in costly mistakes.  But please don’t spend money attending seminars, conferences and boot camps only to let the information you learned and the materials you purchased collect dust on a shelf somewhere in your house.

Find a partner, join networking groups both online and offline and stay motivated.  Any one who tells you it’s going to be an easy road isn’t telling you the truth.  No business is easy, to be successful everything takes work.  So be prepared to give it your all.  Go out there and start.  Don’t sit on the sidelines while others are making thousands of dollars every day in the real estate investing game!

Nechelle Vanias is a full time investor having completed over 400 real estate transactions since 2005.  She specializes in simultaneous closings, the Buffalo real estate market and residential and commercial development in the Charlotte, NC metro area.  Nechelle is the mother of five children.  She graduated from the University of Pennsylvania and current resides in Charlotte, NC with her husband and children.