I am not alone in my fascination with the 30year fixed rate loan . Warren Buffett , who was in touch with me in 2012 about buying rental homes using these wondrous loans , is also a proponent . There is a recent article in Entrepreneur magazine by Cheryl Snapp Conner , called “ Want to Become a Millionaire ? Follow Warren Buffett ' s 4 Rules .” In the article , the writer refers to the interaction Warren Buffett and I had regarding these loans for investment properties .
I also have several simple criteria of where to buy rental singlefamily homes :
Photo by Lukas from Pexels
fixedrate loan , letting a property manager rent it out , and then proceeding to do … nothing , will change your future . Doing nothing , by the way , is one of the hardest things for us . We always want to sell , exchange , wheel and deal , and complicate matters .
Given this , the savvy investor can relax and go where there is inventory . During COVID there have been inventory shortages in many markets . Since the exact market is of secondary importance , the investor can feel freer to go to any good market where inventory exists .
" I am not alone in my fascination with the 30year fixed rate loan . Warren Buffett , who was in touch with me in 2012 about buying rental homes using these wondrous loans , is also a proponent ."
investor should jump into investing in rental homes at this time .
ABOUT ICG AND ADIEL GOREL :
Sunbelt States ( based on longterm demographic studies ), the suburbs of large metropolitan areas , places with a decent ratio between rents and prices , and brandnew homes . I explain the rationale behind these criteria in a series of articles ( which I ’ ll be happy to share with readers ).
The 30year fixed mortgage is so special , and it is so dominant in changing an investor ’ s financial future , that it is of primary importance when investing in rental homes . Exactly which city or what location , or even which house you buy , becomes secondary . That is , of course , if it follows the criteria I just presented .
Thus , it is not as important which market you choose . Over the past 38 years , I have seen it time and time again on the hundreds of homes I bought , and on the many thousands of homes that my investors bought . The powerful effect , over the longterm , of simply buying a good home ( see criteria above ), financing it with a 30year
A corollary to the question about market choice is the question I get often these days about home prices . I am asked whether the home prices , having gone up in the COVID rush , should preclude jumping into rental home acquisitions . People wonder whether they should sit on the sidelines until some market prices go down .
Not only is it not clear that prices will be heading down soon ( building materials are getting more expensive and supply chain issues makes building houses more expensive , although that may abate ), but , once again , the investor has to consider the fortuitous window we are in : extremely low 30year loan rates AND an increasing bout of inflation . Missing out locking these rates forever , while also running into higher inflation would be a “ primary miss .” Waiting for a possible price slowdown would be a “ secondary possible optimization .” Thus , I believe the smart
ICG ( International Capital Group ) Real Estate Investments was established in the 1980s . Adiel Gorel , founder and CEO , has been helping people achieve financial security for over three decades , and in that time has worked with investors to purchase over 10,000 homes . Gorel is a real estate broker in several states in the U . S ., an international keynote speaker , and notable author of three books : Remote Controlled Retirement Riches – The Busy Person ’ s Guild to Real Estate Investing , Invest Then Rest – How to Buy SingleFamily Rental Properties and Remote Control Retirement Riches – How to Change Your Future with Rental Homes . He has been featured on major television and radio networks across the country and in Fortune Magazine . He has also been featured on Public Television with his show , “ Remote Control Retirement Riches with Adiel Gorel .” To invite Adiel Gorel to speak for your group , email
info @ icgre . com and visit
AdielSpeaks . com . For more information on ICG Real Estate Investments , visit icgre . com .
64