In today’s episode, our guest, Ron Phipps, joins Monica to talk about how to get involved in real estate investing, and to discuss the benefits and the best ways to get started. Real estate investing is a great way to build wealth and to prepare for long-term cash flow for the future. This is a great opportunity for real estate agents, investors, and the general public. In addition to the benefits, Monica and Ron talk about some of the downsides to real estate investing, and the risk involved with different kinds of units. The big picture: Why is it so great to invest in real estate? The history of real estate investment goes all the way back to the founding fathers and their recognition of the value of private property rights. They understood that self-reliance for citizens was important, and property is a very effective tool by which the citizens can become financially self-sufficient and independent. Ron talks about the difference between the net worth of families that own property versus renting property, as well as the difference between generations, to show how real estate investing can be an effective tool for saving. Ron and Monica talk about the importance of real estate for your overall long-term savings portfolio. Real estate has a lot of functionality beyond monetary gains, since it provides one of our basic needs. The demand will continue to be there, as we all need a place to live. Ron breaks down some numbers in terms of population size and family size to support the increase in demand. It is important to work with a real estate agent who understands the investment piece and the demographics to be successful (understanding which types of units are necessary, amount of space, etc). Some of the benefits of real estate investing: First and foremost, it is a very good way to create wealth and also have flow. You don’t always need a lot of money to put down, up front. It is one of the few vehicles where you can leverage the money for a more expensive asset, and use money earned from rent or other expenses to pay off the mortgage. In these situations, you have appreciation and depreciation at the same time. Additionally, you have an asset that in the longer-term will appreciate. Real estate is a great way to build wealth and be able to pass it down through generations. For some, the fact that real estate is a tangible asset can provide a great sense of comfort and relief to those who invest. What are the different motivations when picking a property? Some people opt for a property that cash flows all the time, where other people are maybe more concerned with a property being easy to manage, and not make as much. You have to decide what you’re trying to do by investing. Ron talks about the aims of international investors, as well as some different factors to consider when deciding how you are going to invest. Once you know what your end goal is, it is critical to find a REALTOR® that knows about the investment side as well as the market area. It is also critical to be a real estate agent that knows about the investment side. The National Association of REALTORS® has come out with a course that has two focuses: the first is to encourage REALTORS® to make investments, and the second is to train them on the vocabulary of real estate investment and what strategies they can use to help their clients. The investor is a more reliable (and frequent) customer than a family looking for a house. As REALTORS®, becoming an investor can help you focus back on your core business, and can also help you be more qualified to help your clients make sound investment decisions. This includes providing your clients with a network of resources to help when problems arise, as well as discussing disadvantages with their clients. Some of the disadvantages of investing in real estate: 1) lack of liquidity, 2) you can’t sell the property overnight, 3) there are risks and expenses, and 4) the variability of market conditions. As an investor, it is