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Session 7: Real Estate Investment Basics



Session 7: 

Real Estate Investment Basics


Fun Entrepreneur Icebreaker


Name Pictionary:  Have students write their names (or make up names if the class already knows everyone) by drawing pictures of objects that start with the correct letter, either on paper or on a whiteboard. For example, someone with the name Ann would draw an apple, a nose, and a nest. Then, have the group try to spell and guess each person’s name.


 


Objective: To introduce students to the concept of real estate investment, explore different investment strategies, and understand the balance of risks and rewards.


Let's embark on an exciting journey into the world of real estate investment. This field is not just for adults with briefcases; it's a fascinating world that you, too, can understand and maybe even participate in one day. Real estate investment can be an excellent way to build wealth, but like any adventure, it comes with its own set of risks and rewards. Let’s dive in and explore what real estate investment is all about.


What is Real Estate Investment?


Real estate investment is much like playing a strategic game where the properties are your game pieces. Imagine buying a house or a building not just to live in, but to make money from it. This can be done in two main ways: 


1.  Rentals:  Renting out property to tenants or 


2.  Flipping:  Buying properties, fixing them up, and selling them for a profit, which is known as 'house flipping.' 


The Game of Risk and Return


Just like any game, real estate investment comes with its risks and potential rewards. It's not always predictable, and that's what makes it both exciting and challenging.


Risks: The market can go up and down. Sometimes, properties can lose value. Also, unexpected things can happen, like a sudden repair that's needed, or you might find it hard to find tenants.


Returns: On the bright side, if you make wise choices, your investment can grow in value. That house you bought and rented out? Its value might increase over time, and the rent you collect can add up to a nice sum.


So, as you think about real estate investment, it's essential to weigh these risks and rewards. It's like deciding whether to take a safe path or a risky shortcut in a board game. Both choices can be exciting in their ways, but the key is to play wisely.


Remember there is always a risk of losing money in any investment and it is always a great idea to seek advice from parents and professionals and always try to make smart decisions.  And please know that everything we teach is for educational purposes only.  If and when you are ready to start investing, seek the advice of the professionals.  Now that we got the disclaimer out of the way, let’s get into how regular everyday people can make money with property investments. 


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