Sep 29, 2005 -- The odds of getting rich off real estate
Clark has long believed that real estate is a key to building long term wealth. He’d like it to be about a quarter of your assets but no more than a third. But in recent years people have started investing a lot more in real estate. Some people are betting the entire farm on real estate, and “get rich” seminars are popping up all over the country on how to make money by owning property. Sometimes that works but it’s rare. In fact, Money Magazine has a new article out entitled “Reality Check,” which is about how difficult it is to be a landlord. If you’re planning to be a landlord, be honest with yourself and be prepared for a challenge. Screening tenants is your first priority, and you should charge the potential tenant for that check. If you don’t think you’ll be a good landlord but you’d like to own property, have someone manage the property for you. You’re also better off owning individual homes as opposed to condominiums. It’s a better bet, even though you don’t have lawn maintenance and other property issues with a condo.
