Real Estate Investing - Dave Ramsey - Baby Step 7 Farmington, NM

Ryan Brown is your Dave Ramsey Endorsed Local Real Estate Agent in Farmington, New Mexico. Please contact us today for a free market consultation. 


You may have heard Dave’s story about how he became a millionaire in real estate and then lost everything. Maybe that story convinced you to stay away from real estate as an investment.

The truth is, real estate isn’t what caused Dave to lose everything. It was debt. Dave still believes real estate is a great investment—for the right type of investor at the right time.

Time It Right

At first, you might think real estate investments should be part of Baby Step 4. Actually, it is best to wait until Baby Step 7 when you have no debt, your retirement and college funding are well underway, and you’re ready to build wealth (and give some away).

 

Why wait? People call Dave’s radio show all the time to ask if they should buy one real estate opportunity or another. If they currently have a mortgage, but have the cash to make the deal, Dave always asks, “If you owned your home outright, would you borrow against it to buy this property?”

Of course not! You should never invest—even in real estate—with borrowed money. And, essentially, that’s what you’d be doing if you didn’t pay off your mortgage and used your savings to buy an investment property.

Cash is king in the world of real estate. Whether you plan to flip a house—buy it cheap, fix it up and sell it for a profit—or keep it as a rental property, you should only buy with cash.

The Right Fit

Real estate investments can give you a greater return than a mutual fund investment, but it’s a lot more work, too. Dave calls this the hassle factor.

 

To find out if you have what it takes to be a landlord, Dave recommends you start with low risk—one small house or condo. Your renters will likely be lower income, and that can be good and bad: Good because they will probably be low-maintenance, but bad because collecting rent from them may be difficult. But that’s the best way to learn the ropes of being a landlord.

If you don’t want to be a landlord, you can invest by flipping houses. In addition to saving up the cash to do a flip, you'll need to study the market and have a realistic budget for repairs.

Some Final Tips

Keep these tips in mind while you’re considering real estate as an investment:

  • Be patient and look for deals. The better the deal, the better your potential return on investment. Buying foreclosures is a good way to get a deal if you shop smart.
  • Don’t buy an investment property for the tax write-off. You’ll make more money investing in mutual funds.
  • Consider better tax advantages. After you’ve done 30 or more deals, you can consider buying and selling real estate within a self-directed IRA. That means your investments grow tax-deferred. Talk to an investment Endorsed Local Provider about this option.
  • Work with a real estate professional you can trust. With all the experience Dave has in real estate, he still uses a real estate agent. If you’re ready to buy or sell property, talk with one ofDave’s real estate Endorsed Local Providers today!

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© 2017 San Juan County Board of Realtors . All rights reserved. The data relating to real estate for sale in this web site comes in part from the Internet Data Exchange ("IDX") program of SJCBR, Inc. Real Estate listings held by brokers other than R&B Real Estate Group are marked with the IDX Logo. All data in this web site is deemed reliable but is not guaranteed. Information last updated on 2017-08-22.

SJCBR, INC. MAKES NO WARRANTY OF ANY KIND WITH REGARD TO THIS MATERIAL, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. SJCBR, INC. SHALL NOT BE LIABLE FOR ERRORS CONTAINED HEREIN OR FOR ANY DAMAGES IN CONNECTION WITH THE FURNISHING, PERFORMANCE, OR USE OF THIS MATERIAL.

R&B Real Estate Group
1305 E. 20th St., 
Farmington, NM 87401
Office 505-427-2288 
Ryan Brown, Lead Agent/Owner
Brandy Brown, Manager/Owner

Contact Us 
Ryan@OwnFarmington.com
OwnFarmington.com
Keller Williams Realty 
Misty Hensley -New Construction
Leah Thomas - Buyer Specialist

 


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Ryan and Brandy Brown Real Estate Group
Ryan Brown, Owner / Lead Agent  |  Brandy Brown, Owner / Team Manager |   Contact Us

Keller Williams Realty  | 1305 E. 20th St., Farmington, New Mexico 87401 | Call us today 505-427-2288 

The Four Corners Home Team. LLC. DBA Ryan and Brandy Brown Real Estate Group