Free Advice for Successful Real Estate Investing
If you don’t know or if you have already found out, real estate investing can be a bit nerve racking. It can be pretty hard to stay focused with all the rat race sounds, go-go-go tempos of the industry, all the blogs, media commotion and just plain old real life.
Successful Real Estate Investing
What I did was gathered some of the most qualified and experienced real estate agents that I know. We put together a list of tips and Free Advice that you can use as a platform to gain success. Your journey to becoming successful financially, statistically and personally starts here with theses helpful tips.
Remember this…the things that you need to know can only come by doing. But at the same time, if you have an idea of what to expect prior to stepping out into the field, you will have a bit of an upper hand. This is the reason why I came up with the idea to create this list. To help you reach that success.
This is just a small list of Free Advice we have learned on our way and hope they’ll assist you in your journey to success in real estate. Here are some of our favorite tips for beginners in real estate investing.
1.) In Real Estate Investing There is No Real Expert
People get overwhelmed by the massive amount of information there is out there. I read an article once called, “The Top 100 Ways to Make Money in Real Estate” by Brandon Turner. This article puts together the careers and methods that some investors use to acquire wealth through real estate. People send emails after emails asking questions on real estate, and I try to help as much as I can. The thing is, nobody knows it all. There is no real expert in real estate.
2.) Know What You Are Talking About.
If you don’t know what you are talking about, you’ll look very silly trying to fool someone who does. Don’t think that talking like an investor to an investor makes you more credible. You’ll look foolish and ignorant. Just be honest and let that person know that you don’t know then trying to be something you are not. Here are some frequently used terms and definitions….
3.) It Really is Cool if You Finished School.
It doesn’t take a rocket scientist to be in real estate investing. Real estate math isn’t difficult. It is basically elementary school math. For example: you minus income from expenses and that equals cash flow. This is the basic math that you will need to get good at. But don’t take it for granted. Instead, make sure that your deal is a solid one. Use your math and a basic spreadsheet (if you need to just to double check a deal) or use an investment calculator to analyze every single deal you do. Once you get that figured out, keep it the same way. Don’t let your pride cloud your judgement. This is a game of numbers and you can mess a lot of things up if you forget it. Here is an example calculator to familiarize yourself with, and also use.
4.) Be Resolved.
Real estate is not an impulse kind of field. Being an investor in real estate is a lifestyle that will assist you in your financial future. Becoming an investor has a lot struggles that you will have to overcome. You will mess up, you’ll fail and you will struggle from time to time. Investors who are successful are the ones who take a licking, uses those experiences and use them to improve their skills.
5.) Sacrifice is Necessary..Learn it
If you want to live the life you’ve dreamed of, then you are going to have to learn how to sacrifice some things. You may want to move in order to build up enough money to begin investing. Or you may need to take a vacation and use the money toward a down payment instead. You may need to learn how to use a paint brush and do your own work. Investing in real estate is the most rewarding thing I’ve ever done, but it hasn’t always been easy. There were years of sacrificing (time, money, and opportunities) to get financially free. If you are looking for a get-rich quick scheme – look elsewhere.
6.) You Have To Start Somewhere.
It isn’t necessary to go and purchase an apartment complex . You might want to invest in a home first, or you could start off with getting a partnership on a small flip. Don’t get too excited by the big deals these internet folks speak about. They had to start from somewhere too.
7.) Start To Enjoy Reading.
So you obviously know you can read or you wouldn’t be reading this, would you? Reading is important in real estate. If you don’t like to read, at least learn to listen to the recorded versions. Even though books contain a lot of information. It’s a shame that so many people are losing their love of reading good books.
8.) Create a Game Plan.
Now ask yourself this. Would you take a trip across country without a map or GPS? Then why would you take a trip through financial independence without one? I actually began creating a plan to get from where I was to where I am when I first started investing. Though I didn’t stick to the exact plan, I did stick to its principles.
9.) You Are Who You Surround Yourself With.
Start hanging out with investors and go where they hang out. Ask them to show you some their properties. A majority of investors that I know love to show off their accomplishments. Soak up every ounce of information that you can retain. The local investors have a bit of a better advantage to what actually works in your community than any other investor.
10.) Don’t Be Shy Get Creative
Did you know that “lasting wealth is built through creativity.” If you change the way you think from “I can’t” to “how can I” you will change the way you view conflict especially in real estate.
11.) Don’t Be Foolish. Have Something To Fall Back On.
Real estate investing has two sides to it: the career side and the investment side. Use real estate as both. Believe that if there was a better career I would do that and focus on investing. Flipping houses is part of the “career,” the same goes with “wholesaling.” But buying cash flow properties and reinvesting in that property, turning it into something bigger and better is how you create investments for your future. Setting up a system to manage that business also creates investments for your future. This is called “The Minimum Wage Millionaire” principle which states anyone, regardless of salary, can become financially free if they invest smart. If you prefer the “career side” of real estate then make it your job and your investment. If you prefer teaching gym classes at a high school, then do that instead and invest on the side. Whatever job makes you happy, do that. But use real estate as your investment to gain financial freedom.
12.) Business is Business…Treat it as Such
Treat Real estate as a business and keep it organized. Learn how to build systems to manage your life, and learn how to increase your worth. Many landlords hate their role because most of them treat it as a hobby or a job. When actually they are business owners and such is your job to manage that business to standards which is best.
13.) Keep Track of Your Paperwork.
One major mistake I made when I was real estate rookie, was that my paperwork was a small dot on a wall. As result, my paperwork became a mess. Creating a system that works would have significantly lowered stress levels. Meet with an accountant and a lawyer when you purchase your first property. Start planning your bookkeeping, taxes, and legal status and you will thank me in the future.
14.) Don’t Forget To Follow Trends.
Investors who heard about real estate being a great investment, jumped in with both feet naked not knowing where they were going to land. A lot of times investors get lucky and hit big. Unfortunately, majority of the time investors fall and fall like rocks. Do your research and study what you want to invest in and learn all you can about that subject. Don’t be on the opposite end of the wall.