February 4, 2016 by Jeff Lowen
The first couple months of the year always offers a great opportunity for a little introspection. Many of us set goals and intentions wearing a the disguise of fleeting New Years’ resolutions. Is it any wonder that exercise gyms are jam-packed from January 2nd up until about mid February? Somehow, we all lose a little steam and the song that B.B. King made famous comes to mind; “The Thrill Is Gone!”
Well, here’s something to get excited about that may just prove to keep the fires burning. The real estate investment market is heating up and there are some great opportunities for would-be investors to join in the fun.
Depending on where you are in the country, the methods of acquiring property and the strategy of what to do with it when it’s yours may differ a little, but no matter where you are, there are great deals to be had.
Are you excited yet? Here’s 5 tips to get you started:
- Cardinal Rule: Everything you want is either owned or controlled by someone else. So, doesn’t it make sense that we spend a little time learning how best to get it? Figure out what you want and go from there. Go back to school. Learn everything you can about real estate investing. Bird-dogging, wholesaling, flipping, buying and holding, being a landlord, positive cash flow, and the list goes on. Sponge it, baby!
- Decide which category do you fall in. There are really only two types of investors. Those that have cash to invest and those that don’t. Which one are you? Sometimes you’re better off when you’re first starting out to Not have the money. This way, you’ll be a little more open to learning about it than just pulling the trigger on a would be deal, only to lose your ass (and your nest egg) in the process.
- Create your plan. Once you decide what you want out of it, e.g. more money, early retirement, part time income, tax bennies, or a full on business; then learn everything you can, and continue to learn; now comes the fun part. If you have a little money, then the best way to protect it is to partner up with someone who knows how to invest and has had a little success in the process.
- Cardinal Rule #2: You make your money when you buy. Some would be investors look at potential properties as if they like the neighborhood, whether it has hardwood flooring, etc. As if they would live there… A true “investor,” is all about the ROI. Period. It’s a vehicle to grow wealth.
- Don’t get all emotional about it. Tenants may scratch the wood floor, put holes in the wall or spill oil on the carpet; it’s all the cost of doing business and a good investor will “Buy Right” so that whether she is holding the property for a rental or quick turning (Flipping) the property in less than a year, she’s purchased with that in mind and can absorb the costs. Else, she walks and looks for another.
Now, there are more ‘rules of thumb’ here, and if you’re truly interested in getting in the real estate investment game, stay tuned. You can go attend a seminar that countless gurus are giving and many of them have had an amount of success, just be careful because many have found that selling wares with their model of investing in real estate is more lucrative than the act of real estate investment, itself! In other words… Leave your credit cards at home! 🙂
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