Want to Be a Successful Real Estate Investor? What You Need to Do

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Are you looking to make money through real estate investing? If you are, you are not alone. However, real estate investing is a tricky business. There are some real estate investors who are successful, while others are not. If you are interested in becoming a successful, profitable real estate investor, you will want to make sure that you know exactly what you are doing, when buying real estate investment properties. That is why it is advised that you do your on research or signup to take a real estate investment course or class.

When it comes to taking the time to thoroughly examine real estate investing, there are many hopeful real estate investors who wonder why they should bother. Many assume that buying real estate properties, fixing them up and then renting or selling them isn’t a complicated process, but there is more to being a real estate investor than just putting a purchase offer on a property and doing a few repairs.

One of the reasons why research increases your chances of seeing success and profits is because there are many real estate investing tips out there, just waiting to be found and used. What many do not realize that is many real estate investing tips, which include both dos and don’s, are composed by successful real estate investors; those who have seen profits themselves. Getting your information from a successful, proven real estate investor is your best chance of success.

7 Simple Steps To Real Estate Investing

Whether you are BRAND NEW to real estate investing or an expert in the game, it’s critical that you understand these 7 Simple Steps to real estate investing.

First things first…

o Real Estate is NOT a get rich quick scheme. However, if you learn the foundations and put them into practice, you will make more than enough money to realize any and all of your dreams and goals.

o The real estate bubble is not going to burst! The real estate market will, however, shift and the real estate market will change – just as it always has! What’s “hot” now may turn ice cold in the next 3 years (or perhaps even 3 months). But, there are ways to “bubble proof” your real estate investments. It’s actually quite simple.

Did you know that in the United States, in 1975, the median home price was $33,300? In 2005, the median home price was $195,000. Historically, the average home doubled every 7 years. If you do the math, it should be well over $200,000.

OK… Now, having said that… The real estate market WILL change and what is “working” today in real estate may not in the future… The rental market was strong a decade ago, but has been soft in recent years. We are getting ready for a turn once again.

Real Estate IS a cycle… and cycles have some degree of predictability. With predictability, you can grow your real estate business into a cash-producing, profit-pulling machine that runs itself WITH the changing real estate market trends. It is still possible to make money in real estate. In fact, now is just as good a time as any to get started in real estate investing.

But, you’ve got to make wise investments. Sure, you may make some SERIOUS cash in pre-construction, but what happens if (no, not if – when) the market shifts and there are suddenly 35 identical properties on the market for sale in the same building? How long can you afford to carry a negative cash flow on the property?

Or how about taking over property ‘subject to’? Sure, it’s a great strategy and lenders may be inclined to turn the other way and not exercise the “due on sale” clause as long as the interest rates are at rock bottom prices (You know, those sellers that you’re usually taking property subject to from usually don’t have the lowest interest rates, right?) If the interest rates spike to 10-11%, don’t you think lenders might be MUCH MORE inclined to exercise their option to make you pay off the 6.5% note?

What this means is simply that you must be experienced in the basics – the tried and true techniques, strategies and systems that have worked in the past, are STILL working and will work in the future. You’ve got to have all the tools in your bag so that you can go with the flow and not be affected when real estate markets begin to shift (which they are already in the process of doing, in case you’ve missed that memo! ;-)

Step #1 – Set your plan: Figure out what your long term real estate goals are (aka retirement and wealth building) and figure out what your short term needs are with regard to making money in real estate. Then, set up the proper entities and put the plan in place.

Step #2 – Determine what your target market will be: You cannot be all things to all real estate markets. If foreclosures appeal to you, start investing in the foreclosure market. If you want to be a landlord, look to out of state owners to focus your real estate marketing efforts.

Step #3 – Be consistent and persistent: Real Estate is not a get rich quick scheme. Real Estate is get wealthy over time and put some quick cash in your pocket today. You’ve got to follow your plan and stick with it to see real results in real estate. You’ve also got to continue to increase your education and your experience.

Step 4 – Don’t fall into the “Analysis Paralysis”: Learn to analyze properties quickly. Don’t get caught up overthinking. It’s quite simple actually: What’s the property worth? What does the property need for repairs? And how much can you get the property for? It all comes down to numbers!

Step 5 – Become a master of finance!: Real estate is the business of marketing and finance. You must learn about mortgages and interest rates and loan programs that are out there. You must know how to use finance to negotiate your deals and to sell your properties.

Step #6 – Become a skilled problem solver: The reason you will get real estate deals that others don’t, is because you are able to solve people’s problems. Anything goes on the real estate playing field. You’ve got to be ready!

Step #7 – You must continue your education: It is important that you are always investing in your education and learning new tactics, strategies and tips that will help you make more in real estate.

If you enjoyed this article, make sure to look up the other articles discussing The 7 Simple Steps To Making Money on Real Estate. The next article discusses Step #1 – set your plan in further detail!

Five Key Principles to Real Estate Investment Riches

Real Estate Investing is the craze today with people involved in the Carlton Sheets program spending money on courses to find out how they can make money in no money down real estate investing. This article hopes to help you create some sort of mental picture of five key principles that can help you make more money with real estate today.

Principle #1- The money is made in the purchase

Real estate investing is like value investing in stocks and you want to purchase the real estate during a period of a real estate slump. The reason for this is so that you can get a huge capital appreciation when the real estate market heats up again.

Spending time doing real estate valuation is critical since if you cannot satisfy yourself on the maths that is a viable proposition, there is no way that your real estate investment would be a good one.

Principle #2- Monitor Cash flow

Real Estate investment typically have a monthly rental income which then is used to pay for mortgage installments and other problems with the building like a roof leak. You would thus have to keep a close watch on interest rate hikes since they can potentially erode any calculated return on investment quite quickly. Once you have enough cash coming in, it is suggested that you then keep some of it in a rainy day fund in case some of the rental tenants do not renew their property and then take the rest and consider investing in another real estate investment property.

Principle #3- Leverage on other people’s time

Remember that no one can do everything, so the key is to focus on what you do best. If your strength is in negotiating deals, spend time looking for property and then get professionals and contractors to handle all the rest of the deal for you. Similarly, if you are good at decorating property, then find deals and focus on the interior design of the property. By focusing on what you do best and getting other people to do the rest of the work, you are leveraging on their time and you can then make more money from each new real estate investment that you undertake. Spend your time to build your team of advisers and employees who work for you and you will see your profits start going up. Remember that by rewarding them financially, you will get a group of dedicated people helping you make more money from your real estate investment.

Principle #4- Learn how to use leverage with a good rainy day cash balance

Did you know that many real estate investors started off with very little money to invest? Even large real estate developers like Donald Trump have learn the power of leverage when investing in property deals. You want to leverage as much as you can so that you can control property worth many times more than what you own. Remember however to keep a rainy day fund containing a portion of the rental payments so that you can hedge yourself against a possible period where unit occupancy of your real estate investment is low. Leverage when used well can make you lots of money but if managed badly, will bankrupt you. Thus planning your cash flow and learning how to use debt is critical before you start serious real estate investment.

Principle #5- Spend time networking with real estate professionals

Do you want the latest real estate investment deals? The best way to learn of them is to break into the local real estate professional group and make friends with them. Learn some real estate investment lingo and spend time making friends with them because they are your eyes and ears on the ground and they can tell you about recent developments and changes in rental, property and infrastructure of their geographical location. Having the first player advantage is what many large real estate investors have and by spending time to network with real estate brokers, you will substantially close the gap.

In conclusion, spend time looking at these five principles and determine how they can be applied to your real estate investment and you might start seeing an increase in your real estate income.