==== ====Check out this link for Real Estate Investors:http://tinyurl.com/7qzt3mr==== ====Have you ever wondered why some real estate investors seem to make it all look so easy? Wehave all heard the stories about how one investor made over $100,000 in a week by flipping ahouse. Or maybe about how another one bought a multimillion dollar apartment complex andwalked away with cash at closing.So how do these people do it? And is it something the average person off the street can learn todo? Well, those are some of the same questions I had when I first started in the business. So Ispent months of research and tens of thousands of dollars to learn what strategies thesesuccessful people use that the rest of us do not. What follows is a brief summary of what Ilearned. Some may surprise you, others may not. However, I found these to be common words ofwisdom from every successful investor.1. Real Estate Investing is a Business, Not a HobbyEvery successful real estate investor I know operates their endeavors strictly as a business, evenif its just a part-time thing. This means setting up a Corporation, S-Corp, Limited LiabilityCompany, Limited Partnership, General Partnership, or typically some combination of theseentities. Notice I didnt mention Sole-proprietor? Talk to a knowledgeable real estate attorney inyou area for a better idea of which ones are right for you and your goals. Not only will the rightentities protect you and your ASSets, but will allow you to take advantage of certain taxadvantages you would otherwise not have. If you stop reading here and take no other advice fromme please, please do this one.2. Build A Team of ExpertsFew, if any, business owners succeed without a team of experts to guide them. These people cansave you a tremendous amount of time and money and possibly even legal problems. Yourbusiness team should consist of a good real estate attorney who understands the state laws andan accountant. I recommend finding an accountant who is also a real estate investor if possible.You should also have a realtor in each area you are considering investing in, an appraiser, a homeinspector, an escrow company, a mortgage broker, other investors, a general contractor, and aninsurance agent. There are other specialist would should also consider for special cases such asan architect, a surveyor, environmental company, etc.3. Have a PlanDevelop a business plan for your real estate investing venture even if you are not new to it. Afterall, this is a business and few really reach their potential without a good plan. I promise you,
spending a few hours putting it down on paper will be well worth it. And its always good to revisityour plan often to keep you on target.4. Network, Network, NetworkReal estate is people business. If you havent done so already, get good at smoozing. Now I dontmean the used car salesman type where you do all the fast talking. Join your local real estateinvestment club, become a member of a church if you arent already, volunteer with Habitat ForHumanity, just get involved! Get to understand what the sellers or buyers needs are. This meanslistening! Get to know what other investors are looking for and who the local "players" are. Youmay be able to do a partnership on a deal or refer them to a deal that may not be exactly whatyoure looking for. Above all, treat everyone you meet with respect whether theyre your team,sellers, or buyers and they will respect you. If you do these things, more deals will come your waythan you can possibly handle. I can think of a lot worse problems to have!5. Know Your MarketSpend some time getting to know the areas where you plan to invest. Go to some open housesand talk to the agents. Drive the neighborhood and look for the "For Sale By Owner" signsotherwise known as FSBOs. Look for homes that appear vacant or in disrepair. Learn how muchhomes go for in the area and what the local trends are. Talk to some the local residents and learnwhat the community is like. Is there crime in the area, how good are the schools, is the areagrowing, what are the local demographics? This information will serve you well when it comes timeto invest.6. Never Buy A Property Without At Least One Solid Exit StrategyIn real estate, you make your money when you buy, not when you sell. So what am I trying to sayhere? For each offer you make, you should know exactly how you are going to make your moneyfrom it. It could be as a rental for which you should have a positive monthly cash flow. It could beas a rehab and flip for a profit. Or maybe you may offer it as a lease with an option to buy. Or, itcould be hold for the equity growth. Run your numbers for each strategy. If the numbers dontwork, dont do the deal no matter how much you like the property!7. Treat Your Agents Like GoldReal estate agents can make or break your business and a good one is worth their weight in gold.They will do much of the legwork for you and bring you potential deals. They know their areasinside and out and can steer you away from potential problems. They will even find you buyers foryour properties as well as show it while you are out looking for more deals. And, they work only forcommissions based on the sales price of properties that sell.However, most real estate investors dont buy and sometimes dont sell property at full marketprices. This could directly affect your agents commission and their motivation to support what youwant can diminish. I suggest paying your agents commissions based on market price regardless ofthe ultimate sales price. Yes, it may impact your profits some but youll have a very loyal agent.And guess who gets the first phone call when hot property comes up!
8. Dont Be A HogThe old saying goes, "Pigs get fat, and hogs get slaughtered." The saying holds true in real estateinvesting as well. Many new investors make the mistake of trying to squeeze out the maximumprofit out of every deal and then wonder why they cant find any buyers. Dont be afraid to leavesomething on the table for the next guy, especially if youre selling to other investors. Its better tomake a lot of smaller profits over and over than it is to make one big profit. This strategy shouldhave potential buyers lining up at your door when you have a property to sell.9. Give Away 10-15% of Everything You MakeI can hear you now, "He said what?!" Thats right, give away 10-15% of everything you make. Howyou decide to do it is up to you, but I warn you, you may have to get creative. Steve, a mentor ofmine follows this rule like a religion. In fact, on his very first deal he made about $5,000 which heneed desperately, since he had recently lost his job. He was nearly bankrupt but still decided togive away some of his profits. He decided to buy his pastor a new suit, something he had neverhad in his life. Even though Steve was excited about making the money, the look on his pastorsface when he wore it for the first time made him feel ten times better. By the way, word got aroundvery quickly and before you know it, he had three more deals in the works that profited much,much more.10. Offers, Offers, Offers!Youll never make any money if you dont first start with an offer. But for some reason, this seemsto be the biggest hurdle for most new investors. I like to use the "Fire, Aim, Ready" approach tomaking an offer. Dont spend a lot of time trying to figure out what the perfect offer will be, justmake one. Most of my offers are made without ever having seen the property. Remember, if thefirst offer doesnt embarrass you, its too high. I know of a very successful real estate investor inthe Tampa area who once offered $1 for a $14 million golf course! Okay, so he eventually boughtit for a little over $2 million and the resold it a couple of weeks later for a tiddy profit. Its only afteryou have the property under contract that you should spend the time to determine if the price isright or not. Most successful investors will make 25 or more offers a week of which maybe onlytwo or three may eventually end being accepted. Of those, maybe one will make it to closing. Butlets see, one deal a week, $5-10,000 profit each....you get the picture.11. Have FunLike any business, real estate investing has its challenges. Sometimes deals fall through at thelast minute, renters can be a real pain, or you find out about the sewer line collapsing at one ofyour properties that needs $15,000 in unexpected expenses to fix it. There will always beobstacles to overcome but the rewards can be well worth it. So have fun with it! If you truly enjoy it,it will show on you and suddenly the problems dont seem like such a big deal anymore.There are many more tricks to the trade depending upon which niche you decide to invest in. Butthe basics are the same across the board. Apply these secrets and you too can become the nextmultimillionaire!
Troy Thomason is a professional real estate investor and business owner investing in theSouthern California and Mid-West regions. He began his first business as a house painter at theage of sixteen where he learned to rehab houses. He also holds an MBA from PeperdineUniversity and frequently publishes real estate and wealth creation related articles. To findadditional information on this and other real estate topics, go tohttp://www.HassleFreePropertySellers.comArticle Source:http://EzineArticles.com/?expert=Troy_A_Thomason==== ====Check out this link for Real Estate Investors:http://tinyurl.com/7qzt3mr==== ====