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As a general rule, real estate investing is an excellent way to build a solid financial foundation and get out of debt.
But -- you have to do it under the right circumstances, and for the right reasons.
One of the most common scenarios that I see among the new and inexperienced, who have gotten themselves into big trouble with real estate investing, is jumping into a deal that they don't understand Nike Air Foamposite One España , in hopes of earning a chunk of money quickly so that they can pay off existing personal debts.
Someone along the line gave them the idea that they could solve all their financial problems by jumping into a real estate deal to make quick cash.
If you are desperate for $20,000 and you're trying to think of a way to come up with it in the next 30 days, you can use real estate as a strategy, but you should be willing to get advice or consult with an independent professional who can give your deal an honest evaluation that is in your best interest.
Many folks get into deals that they barely understand and wind up in a worse financial situation than they had to begin with. I recently counseled with a young man who had excellent credit, documented income and had a "friend" who is an appraiser. The friend approached the young man and said Nike M2K Tekno España , " I can set you up with some good real estate deals, I've got the connections in the business, we can make some big money quickly".
So our young investor jumped in, assuming that his friend had everything under control. He also assumed that he was soon to be on the fast track to financial security. He signed paperwork he barely read. He did not understand how the deals were to work, or how the money would actually be made. He committed his credit as the buyer for the properties Nike React Element 87 España , while his friend, the appraiser, would be responsible for all the confusing details the young man did not know anything about.
With no legal advice from an attorney, and without consulting with anyone ahead of time, he signed paperwork that was so poorly written and so vaguely worded that I was shocked when I read it. If only he had contacted me first Nike Odyssey React España , this never would have happened.
This young man made three critical mistakes.
A: He thought he was going to make easy money because he had "a friend in the business".
B: He committed his credit and signed as the buyer for deals that he did not understand.
C: He failed to get an independent evaluation of the terms of the deal.
Turns out, his friend the appraiser was engaged in a bit of loan fraud. He inflated the appraised value of the property so that the lender loaned more on the properties than they were actually worth, pocketed the extra cash, and left this young man holding the bag on properties worth about $200,000 with loans outstanding of about $300 Nike LeBron James España ,000.