Re: \"Service\" franchises
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Regardless of positive cashflow from a property, at my age and with my job it seems like I'd need to be putting 20% down on any property
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Well, this may or may not be the case. Putting 10%-20% down is pretty much par for the course. However, many banks don't really care too much where that 20% comes from, i.e., it doesn't have to come out of your pocket. Sometimes the seller of a property will put up the 20%. Sometimes another bank will put it up. Sometimes you can take it out of another line of credit that you have.
A lot of what you need to know in real estate is where to get the money. I put almost none of my own money into a RE deal, and when I do, I have a 25% cash on cash return on invested money. Most of my deals have much higher COCR than 25%. If I get my money into a deal, I want it back out quickly. Its not that I'm special - anyone can do this. You get there by a combination of experience and relationships. There are lots of people that want to passively invest in RE at high returns.
It also depends quite a bit on what kind of RE investing you do. Some requires substantial capital (i.e., investing in apartment complexes or developing retail rental property). Other investments require very little capital (i.e., flipping houses). But to make money in RE, you don't need to have money necessarily. All you need is to think creatively enough to solve people's problems. This is the knowledge portion of the REI puzzle.
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Thanks for the advice, you give me something to think about. Real estate probably is a better choice for me (I have no problem doing exhaustive research when interested in something,) however I am concerned how I can come up with capital in the future.
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Look, in RE investing, money is the least of your worries. There are lots and lots of people ready to hand you the money when a deal is great. And besides, an RE investment business will grow automatically. Properties bought today appreciate over 5 years, you borrow against the equity in your property to buy more properties. It's time-honored in REI. Get rich slow.
For now just focus on learning more about REI. Go down to the library and grab one or two books, and spend an hour or two per day with them. It doesnt' matter which ones you grab, just pick two at random and get started.
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