Yes, You Can Still Retire Comfortably- By: Patrick Esposito
About five years ago, many people had dreams of retiring comfortably. If you were a real estate investor, you probably had dreams of retiring very comfortably. When that day came, and you were ready to reap the fruits of your labor, it was just of matter of selling off your investment property. There was plenty of equity, and there was no shortage of buyers. After all, real estate was the true way to wealth, and was a no lose proposition. Why sell, just wait until you need the money, the equity will always be there, and of course, keep increasing.
Ok, now wake up. The dream is over. The equity that we counted on for our retirement is gone. Or is it? The equity is gone, but the dream does not have to end. Real estate will go up again. There will be a demand again. The people who hold on and the people who purchase now will reap the benefits. The dream only ends when you decide to end the dream. Remember what Napoleon Hill has said: ďEvery adversity, every heartache, every failure, brings with it the seed of a greater or equivalent benefit.Ē Now letís find the benefit of the real estate collapse that has happened over the past 4-5 years.
First of all, when someone loses their life savings, and retirement money, it is difficult to find a benefit, but letís see what we can salvage from all of this.
- Learn to never give up the dream. We all want something to look forward to. We want a reason to wake up each morning. We want to know that no matter how good or bad our life is now, we have the power to make it better. We may want a bigger house, or a better neighborhood. We may want more time to spend with our family and friends or to enjoy our favorite activity. No matter how tough things get, we should never give up our dreams.
- The real estate market has its ups and downs. If we learn this now and remember it, we will benefit when it has its next down turn. Of course it will go through an upturn before then. The best learning is through experience, and the past few years have been an excellent teacher. There will be other opportunities, start to prepare now.
- Take some profits along the way. It is great to build a portfolio, and know that one day your real estate will be worth much more that you paid for it. Remember though, there is nothing wrong with taking a profit. After all, that is why you are doing this in the first place. Take your profit when appropriate, and you will be in a better position to buy when the next good deal comes along.
- You may lose money, but never experience. The experience you gain from your real estate transactions is something you will always have. You will be able to take your knowledge and experience wherever you choose. There will be other opportunities, and you will be a better investor the next time around.
- Prepare for that rainy day. When times are going well, it is natural to think it will continue to go well, and keep getting better. Now we know better. Rainy days will come, be prepared, stash cash, donít over leverage, donít be in a position of too much real estate and not enough cash. Always keep building a cash reserve fund.
Start to set your goals now. Start the dream over again. No excuses, the opportunities will be around for a while. Real estate still has many benefits, and could still be that great retirement vehicle. Remember to always be an informed investor.
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Pat Esposito has been involved in real estate for 28 years as an investor, trainer, and consultant. He is the author of The best Investment You Can Make, and The Informed Real Estate Investor and is the founder of www.TheInformedRealEstateInvestor.com