There Are Only 3 Reasons To Buy Real Estate in Bellingham OR Elsewhere

This is the start of a series on basic real estate investing. Even if you’re a pro, it doesn’t hurt to review.

There are 3 and only 3 ways to make money buying real estate as an investment medium.

 1. Equity – Buy and hold. Rent pays mortgage and expenses. Property appreciates over time.

2. Cash Flow – Have an income stream in the form of rental income.

3. Cash – Buy short term and flip for cash.

Any opportunity you’ve seen or thought about, fits into one of these categories. Those are your options.

Sometimes you can get two of them to work at the same time like building equity and collecting more rent then the mortgage payment. But it’s pretty much impossible to have all three outcomes at once.

It’s best to pick one: Equity, Cash-flow or Cash and learn the rules of that plan. No need to re-invent the wheel. Like most things in life, it takes some effort and some time for you to work out the kinks. You are not usually perfect your first time out. I’ve seen people try one real estate investment transaction and it didn’t work out and now they are afraid to try again. Not every real estate investor has a perfect score. Keep that in mind.

Let’s define what each plan is, starting with The Equity Plan.

 Part 2: How To Get Someone To Buy A House For You.