Making Millions through Real Estate

Written by Posted On Sunday, 12 March 2006 16:00

Many of the richest people in the world have earned their wealth through real estate. That's why real estate investing is touted as the avenue to riches, but while it is estimated that 80 percent of the world's wealth is held in real estate it is owned by a very small percentage of the population -- less than 20 percent, according to a new book on real estate.

Lisa Vander is founder of Pacific Blue Investments, a real estate investment advising company, and author of The Real Guide to Making Millions through Real Estate: Start Your Own Portfolio With as Little as $3000.

Her nearly 300-page book details how to begin the investing process. Filled with tangible information, worksheets, and hot tips -- you have a wealth of knowledge in one resource book.

Here are some tips from the book on what investors need.

Have an understanding of the timing of the market.

"You've got to understand how the market cycles so that you're not disappointed or having unmet expectations when the market is going to do what it is naturally going to do, which is go up and down," says Vander.

Have an understanding of how to analyze real estate numbers.

There are four parts of understanding the numbers of real estate: appreciation, cash flow, loan reduction and tax benefits and how they work together to produce a rate of return on equity that you have in a property.

"You're shifting your mentality from an 'Oh, the property is gaining in value' which is appreciation to how hard is the money, that I have in the property, working for me," explains Vander.

Have an understanding of the economic environment where you hold real estate.

"How diverse is the economy that I am putting my money/capital into and what's the likelihood of my investment being there today, tomorrow and into the future," says Vander. She says there are six economic indicators to consider that help to determine the health and viability of a market where you plan to invest in real estate. They are: mortgage interest rates; affordability indices; supply and demand; demographic information; commercial real estate; and health of the job market.

Vander also points out that, savvy investors take time to research both macro and micro economics when purchasing real estate.

"Macro economics is the study of how large economic forces impact the health and stability of an economy," writes Vander. She says things such as: recessions/depressions; nationally based loan interest rates; wartime; and demographics of the nation are areas that investors should research.

Micro economics is a look at individual sectors of the economy, concentrating on local and regional areas. Vander names the following as factors that will affect real estate: local and regional recessions/depressions; local or regional disasters; age; seniors; youth; diversification of the job market; unemployment rates; affordability indices; supply and demand; new housing starts; existing housing for sale; permits being pulled; commercial real estate; types of vacancies.

Making millions through real estate is possible and with the help of Vander's new book -- how to do it is no longer knowledge just for the wealthy.

Rate this item
(0 votes)
Phoebe Chongchua

Phoebe Chongchua is an award-winning journalist, an author, customer service trainer/speaker, and founder of Setting the Service Standard, a customer service training and consulting program offered by Live Fit Enterprises (LFE) based in San Diego, California. She is the publisher of Live Fit Magazine, an online publication that features information on real estate/finance, physical fitness, travel, and philanthropy. Her company, LFE, specializes in media services including marketing, PR, writing, commercials, corporate videos, customer service training, and keynotes & seminars. Visit her magazine website: www.LiveFitMagazine.com.

Phoebe's articles, feature stories, and columns appear in various publications including The Coast News, Del Mar Village Voice, Rancho Santa Fe Review, and Today's Local News in San Diego, as well as numerous Internet sites. She holds a California real estate license. Phoebe worked for KGTV/10News in San Diego as a Newscaster, Reporter and Community Affairs Specialist for more than a decade. Phoebe's writing is also featured in Donald Trump's book: The Best Real Estate Advice I Ever Received and The Complete Idiot’s Guide to Buying Foreclosures. She is the author of If the Trash Stinks, TAKE IT OUT! 14 Worriless Principles for Your Success.

Contact Phoebe at (858) 259-3646 or phoebe@livefitmagazine.com. Visit PhoebeChongchua.com for more information.

www.phoebechongchua.com/

Agent Resource

How to capture your next prospect - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.