The Game of Monopoly

When it comes to real estate investing, Monopoly is the name of the game!  The object of the game (as defined by the actual game) is to become the wealthiest player through buying, renting and selling property. If we take the principals of Monopoly and apply them to real life real estate investing here's what we have: He who owns the most little green houses and red hotels WINS! 

If it is your goal to be come wealthy I believe that real estate investing is a great avenue be on.  In the rules of Monopoly it also states that "you may buy and erect at any time as many houses as your judgement and financial standing will allow".  You must exercise caution and use your best judgement, even some of the greatest real estate investors in history have been bankrupt a few times. As with any investment, there is a certain amount risk involved.

Here is my light hearted approach to explain what you need to become a real estate investor using the game of Monopoly as an example:


1. Decide if you have enough money to purchase a property (pay with cash or give a mortgage to the bank)



2. Identify a property

3. Purchase the property

4. Collect rent


5. As time goes on, decide whether it is in your best interest to sell or improve the property

6. Repeat



Believe it or not, I actually use this as a model in real life!  My husband and I often say to each other, "little green houses, BIG red hotel, little green houses, BIG red hotel".  It is our goal to someday own commercial real estate (red hotels) as a passive income generator.  To achieve the goal of being a wealthy real estate investor you need to start somewhere by buying your first little green house.  Once you own one piece of income generating property it makes it easier to buy more by leveraging what you already have.

For most people, getting started by buying that little green house is the hardest step.  Often it takes creativity on the investors part to make it work financially. One great way is to look at the assets you already have and figure out if you can use them as leverage to make your first purchase. 

You always hear people saying, "Man, I wish I would have bought real estate back in the '90s."  Don't make that mistake again by missing out on one of the best buying times in our history, you can hear yourself saying it now, "Man, I wish I would have bought back in 2012!"

For a list of little green houses in the area email me at mandy@firstrealtybemidji.com today!