Have you ever thought about how much lost opportunities are costing you because you haven’t started investing in real estate or aren’t going as hard as you should?
For those unfamiliar with the term ‘lost opportunity costs’, it refers to how much individuals are losing by failing to take advantage of the real estate investing opportunities available to them.
According to the New York Times’ calculator, and based upon current factors, average individuals in most areas stand to lose over $100,000 by continuing to rent versus buying their own home over the next several years. When applied to real estate investing and acquiring or flipping multiple houses that loss is obviously magnified and multiplied many times over.
As a rough example, imagine the difference between holding onto $100,000 in savings versus using it for flipping houses, and turning that money over every 30 days with a modest 10% return per deal. Then imagine compounding that added yield over for the next 10 years. That is your lost opportunity cost.
It is understandable that some may make excuses about perceived risk and want to hide every penny they have. Of course most of those in this group fail to take into consideration the huge risk to the safety of money hidden under their mattresses or even stashed at the local bank, not to mention how much those sums will have devalued in a couple decades from now. However, the biggest risk of all is not making moves and remaining paralyzed by unfounded fear.
There has never been a better time to invest in real estate. There will always be opportunities to make money in this field, but times like these don’t come often and the potential for going really big shouldn’t be wasted.
If you just aren’t sure how to get started or need help to take it to that next level; make that investment in your real estate education or even coaching and stop missing out on lost opportunities.