#112 - What you Should Know About Investing in Real Estate

Welcome once again to another great episode of The Retirement Answer Man, I’m Roger Whitney, your host. I have been getting a lot of questions about real estate investing and I have to admit that I am not the expert on that subject. So, what I decided to do was to reach out to someone who was. On today's episode you are going to hear from Mark Ferguson,  a real estate investor from Colorado who has been doing this stuff for a very long time and really knows what he's talking about. So if you've got real estate investing questions as it relates to retirement planning, this is the episode for you to listen to. How you can stop, drop, and roll for more happiness in your life. I have noticed a tendency in my own life, where I get excited about the things that I want to purchase and the moment I get it my interest in it seems to wane. It's almost like the purchase itself decrease is the urgency with which I felt I needed that item. On this week’s “Happy Segment” of the show I'm going to suggest a three-point strategy for how you can address issues like that and I call it “stop, drop, and roll.”  I think you'll find this very helpful. Have you ever considered “I” bonds as part of your financial portfolio? You don't hear investment advisors talking a lot about the treasury issued “I” bonds. Why don't people talk about them? I think it's because nobody is making money from them. You can only purchase them from the United States Treasury. But that doesn't mean it's a tool that is worthless. On today's episode I am going to give you the background on what these bonds actually are, how they work, and why they might be a great tool for you to consider for certain aspects of your financial management. Real Estate Investing for the rest of us. Late night infomercials and reality TV flipping shows lead us to believe that real estate investing is one of the best ways to make a lot of money. And I get lots of questions about this aspect of investing almost every week. I decided that since I don't know a lot about the subject I would talk to someone who does. On today's episode of The Retirement  Answer Man I'm going to chat with Mark Ferguson, an expert on real estate investing who is going to give us the pros and cons of using rental properties as an investment strategy. This episode is full of great information that I know will benefit you. Be sure you take the time to listen. Why are rental properties such a great investment? Today’s guest, Mark Ferguson, is convinced that investing in rental properties as part of your financial plan is a great way to generate cash flow and profit in the long run. On this episode I get into the details with Mark about how to purchase properties with the right margins and numbers in mind, what to consider when you think about expenses and costs to the whole arrangement, and how rental properties can serve as a casual opportunity now and a great investment for the future. Mark's expertise is so helpful to hear and learn from so I encourage you to listen in to our conversation to get an idea how you can get started in real estate investing. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN [0:32] My welcome to you, to this episode of The Retirement Answer Man![1:00] Introduction to today’s episode on Real Estate Investing.THE “BE HAPPY” SEGMENT [2:15] The tendency to buy instantly and never follow through on the promise behind the purchase.[5:40] The need to stop, drop, and roll. :)HOT TOPIC SEGMENT [6:37] The positive turn on the S&P 500 and the price of oil.[7:46] The political climate is beginning to calm down.[8:10] What does all of this change mean to us?[9:26] The reality that there will always be drops and corrections.WHAT DOES THAT MEAN? SEGMENT [10:46] What is an “I” bond?[12:30] The two ways “I” bonds pay interest.[14:11] The maturity range of “I” bonds and what happens if you get out early.[15:50] Why would you even consider an “I” bond?PRACTICAL PLANNING SEGMENT [16:40] Learning about Real Estate from Mark Ferguson.[18:15] The basics of investing in real estate.[19:32] How rentals can make you money (being cash flow positive).[20:19] Where most of the mistakes happen.[21:34] How to buy rental homes that are cash flow positive.[22:58] The costs on rentals that can eat up your profits.[23:45] The biggest mistakes investors make on rental properties.[25:54] The necessary checks you MUST MAKE when finding tenants.[26:48] What you can do if you’re not in a great rental market.[28:06] The biggest problems with investing in rentals in unfamiliar areas.[29:56] How Mark handles properties in other areas that he’s interested in.[31:12] How to find the right team to help with necessary things.[32:19] The WRONG person to get into real estate rentals.[34:40] What Mark means when he says you have to “buy it right.”[36:20] Mark’s articles and resources to help people learn how to invest in real estate.TODAY’S SMART SPRINT SEGMENT [37:57] What is an “affirmation” and how can they be used effectively?[39:53] What truthful mantra could you come up with to set you up for a great day?RESOURCES MENTIONED IN THIS EPISODE www.TresuryDirect.gov - where you can purchase I-bondswww.InvestFourMore.com - where you can connect with today’s guest, Mark FergusonMark (at) InvestFourMore (dot) comContact Roger: http://www.rogerwhitney.com/retirementanswers/Roger’s retirement learning center: www.RogerWhitney.com/learnThe Retirement Answer Man Facebook page: www.Facebook.com/RetirementAnswerMan