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...
- 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.
- 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!
Author Bio
The Next Level Institute is dedicated to helping real estate investors - whether
a brand new or a seasoned investor - become more successful with less effort.
Get your free 4-part mini-course on finding deals AND learn the 7 keys to
sucking in the deals faster than a "Hoover" vacuum! Get your free
e-book at: www.7steprealestate.com.
Article Source: http://www.ArticleGeek.com
- Free Website Content
Home Real Estate Tips and Articles:
Home Staging: 50 Tips - Get Started on Your Home Staging Journey
- How to Really Declutter Your Home for Buyers
- Flipping Real Estate: Calculating Costs
- 7 Simple Steps To Real Estate Investing
- Thinking About Selling Your Home?
|
