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Financial advisors are important. The problem is, many financial advisors are not rich nor are they successful investors. In a major US publication, a credited financial planner had this to say about advice on real estate. Lots of people have made lots of money in real estate but primarily in places like California or Connecticut. Clients who are here in the Midwest have not experienced that kind of thing.
Her clients should fire her. The reason her clients in the Midwest have not made any money in real estate is because they have her as an advisor. If you understand real estate, tax laws and corporate laws and have a good broker and accountant, you can make money in real estate even through the property done not increase in value or turn a profit from rental income. Her report about property increasing in value only in California and Connecticut is also wrong. If she knew her property market, she would know that the fastest growing real estate markets in America were Las Vegas, Nevada for small cites and Phoenix, Arizona for large city growth. She only hear about California and Connecticut because she only knows what is in the news and investment news is about paper assets. She does not know what professional real estate investors know, yet she gives advice as she does know.
The rich said, never ask an insurance salesperson if you should buy insurance. Most financial planners are primarily insurance salespeople, not investors. Insurance is a very important investor product but it is not the only investment product.
I am often asked, how do I find a good real estate investment? My answer is, you must train your brain to see what others cannot see.
How do I do that? The answer is, the same way any shopper finds a good deal. The same is true for real estate or for any investment. You need to become a professional shopper.
You should analyze 100 properties, make offers on ten of them, have three sellers say yes and then buy one. In other words, it takes shopping and looking at over 100 properties to buy one property.
