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...
- 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.
Real Estate Investing
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 over thinking.
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.
Real Estate Articles.
How to Really Declutter Your Home for Buyers
Your real estate agent has come to your house to assess what needs to be done to sell it the quickest. The word, "declutter," continues to come up. You assure your agent that you are a very neat person and that everything will be clean when the potential buyers come to view it. Many sellers encounter the same situation each day. ... More
Wholesale Real Estate Investing
Consider these parameters for a real estate deal:
Property Value: $250,000
Purchase Price: $160,000
Repairs: $2,500
If you analyze the numbers, you see that the equity available in this deal is $87,500 (Property Value minus Purchase Price minus Repairs).. More
Tips for a Successful Open House
You're having the jitters. Your open house is tomorrow. And first impressions count!. Help your Tampa Bay Florida real estate agent make it a smashing open house. Help him clinch that sale. The rule of thumb is to prepare well in advance, and not 24 hours before. Twenty-four hours will not be sufficient time
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