If you’ve been watching late night television, you’ve surely come across many infomercials that tout the promise of real estate riches. Six-figure incomes are promised — on just one single-family home — with the use of massive amounts of leverage. To hear the pitchmen, you can simply have the renters pay off the mortgage. It’s a persuasive argument, but one that falls apart in action. #-ad_banner-#My own experience buying single-family (SFR) houses started in 2002, and by 2006 I owned as many as six homes. I still own a few rentals after selling most just before the housing bubble burst,… Read More
If you’ve been watching late night television, you’ve surely come across many infomercials that tout the promise of real estate riches. Six-figure incomes are promised — on just one single-family home — with the use of massive amounts of leverage. To hear the pitchmen, you can simply have the renters pay off the mortgage. It’s a persuasive argument, but one that falls apart in action. #-ad_banner-#My own experience buying single-family (SFR) houses started in 2002, and by 2006 I owned as many as six homes. I still own a few rentals after selling most just before the housing bubble burst, but in my experience, I found that real estate is far from passive income. Calls come in at all hours for repairs and the bookkeeping can be a part-time job itself. I now prefer a simpler way to invest in real estate: real estate investment trusts (REITs). Until just a few years ago, REITs exclusively focused on commercial property. In 2013, new REITs were launched that focused on single-family properties. I’ve found one REIT in particular could be a perfect substitute for managing your own portfolio of houses. A Great Time To Get Your Start In This Popular Investment… Read More