For instance, you might become an expert in buying, holding, and renting small, one and two-bedroom apartment buildings in a particular area of town.
Perhaps you used to live in an apartment in that area years ago and understand the needs of that community and that type of resident.
Some decide to downsize their homes in order to free up some money for investment, while others may opt to rent out their existing home and move to a smaller home to generate cash flow, increase passive income and decrease expenses.
Only you can decide how to address your financial situation.
One final point about why it’s a good idea to stick to the same game plan when you’re investing in real estate: When you assemble your team of advisors, one of them will be your real estate agent.
He or she will be an expert in one particular sector—the one you’re investing in—but most likely won’t be an expert in other sectors.
Beyond that, you have other decisions to make: What kind of properties you’ll invest in, where, and what to do with them. Are you looking for properties nearby in your town, in a neighboring town, in another state, near water, urban, rural? You could: The Rich Dad strategy is buying and renting, which maximizes short- and long-term income potential.
The following are your numerous real estate options: Each of these has its own choices as well—apartment complexes vary in size, so are you interested in 20-unit complexes, 100, or more? Because the real estate world offers so many options, it’s a good idea to focus on a particular area of specialization.
Essentially you’ll want to determine something specific—how much you want to save, how much of an initial investment you plan to make, what you’ll do with that initial investment, and over what period of time.
For example, maybe you’ve decided that within six months, you want to save ,000, which you’ll then turn around and invest into a piece of rental property by the end of one year. From there, perhaps, you might decide that within ten years you want to have five rental properties. Then you must decide where you want your properties to be.