Last week Walter posted the beginning of his series about what retirement from real estate looks like. This week we are going to start looking at the steps to start building your foundation for retirement by buying real estate.

Make no mistake – this is not a manual on how to steal real estate with no money down!

As you read, there will be decisions to be made.  Where does the money come from?  Will you invest for appreciation or cash flow?  Will you be a speculator or business owner?  The answers will give you the exact direction of where you need to invest and when you need to invest.  “Where” has a lot to do with risk aversion and “when” will be compounded by where you are today in terms of the market, your down payment ability, and whether you have already filled “insider” bucket one necessities.

Bucket one investments include your business insurance, savings accounts, improvements made to your business ensuring future cash flow growth, non-secured debt held to absolute minimums, and tax-deferred retirement accounts like SEPs, IRAs, Keoghs, Roths.  The real estate investments that we talk about in this system should be accomplished after bucket one investments are started and partially funded.  Real estate is a bucket-two investment.  I can hear the “sighs” already from the beginning investors/real estate agents!

Bucket two investments, where your “insider” insights are most likely to lead you, are real estate.  As a real estate professional, you are the wholesale purveyor of the world’s greatest investment product and since you work within the “bowels” of real estate central, it only makes sense that bucket two investments would include investments that you have the greatest chance at being successful at.  This book is all about leading you to unprecedented success, using your “insider” abilities to garner a substantial real estate portfolio and advantage!

Bucket three items include a second home, expensive collectibles, or setting up an annuity for foundations, charities, or your family.  It is important to know where you are in life.  Bucket one, which is your foundational safety blanket, needs to be considered before real estate investing.  In my opinion, you need to have six months’ earnings in the bank, insurance in place (life, medical, and disability), non-secured high interest rate debt paid off, your source of income secured and growing, and all tax-leveraged investments maxed out before you consider investing in real estate.  Work in your real estate business to first provide a foundation before you move to the riskier bucket.

As we get into the information of investing in real estate, you will find that I am EXTREMELY conservative, even though using “insider” secrets.  I will show you how to invest in real estate as a business so that no matter where the market goes,  you will be safe, poised for all break-out appreciation cycles.

This is not a book about real estate speculation; however, real estate speculation can be utilized, if appropriate.  The real estate professional has many advantages over the average investor, and this book highlights and incorporates those advantages.  Your real estate brokerage business, real estate investing business, and most importantly, your net worth are about to change…for the positive!