Can anyone become a successful real estate investor? According to industry experts…the answer is a resounding “Yes”. Average Americans and heavy-hitting investors alike have historically embraced real estate as one of the most reliable methods available to generate real wealth. If anyone can succeed at real estate then it only stands to reason that there must be a series of steps or guidelines to be followed; a “formula” for success….and there is.
Research indicates there are five essential elements involved in becoming a successful real estate investor; steps available to almost anyone. Although they are not easy, they are very “do-able” with a bit of determination.
- Learn how to recognize real estate investing opportunities. Sounds simple enough but putting this into practice often requires the ability to think independently and go against the prevailing wisdom of the day. For example, tough economic times like those in the current fiscal crisis lead many to believe that real estate is a bad investment. Others see a major buying opportunity with historically low prices and the lowest interest rates in decades. Which are you?
- Discover the advantages of using other people's money. Contrary to popular opinion, it doesn't take a lot of money to get started investing in real estate…in some cases it takes nearly nothing. Using other people's money (OPM) isn't just a good way to get started, it's the preferred method of investing in real estate.
- Utilize buying techniques that reduce your risk. Newbie real estate investors fall prey to schemes and scams that promise fast riches without risk but in reality, do little more than pass along outdated information. When evaluating buying techniques it's important to get the most up-to-date and reliable information possible about financing, legal issues and other related topics.
- Position yourself as a real estate insider. Becoming a real estate insider doesn't require you to rub elbows with the likes of Donald Trump. Instead, keep it realistic and focus your efforts on becoming an insider within your own local market. Plenty of average people make millions without ever leaving their own hometown. In fact, research on the wealthy conducted by Charles Stanley found the majority of “self-made” millionaires tend to stay close to home, invest in real estate or a small business and form strong local networks.
- Utilize selling methods to maximize profits. Last but not least, successful real estate investors know how to utilize selling methods to maximize profits. This also entails more than the mere use of leverage; legal considerations, tax implications plus literally dozens of other issues are routinely scrutinized in order to determine the maximum ROI for every transaction.
100% agreed – If anyone can be a successful real estate investor, the time is now! Great article.
When i started to get in real estate industry i felt very small and weak,we all know that this is not easy job.You need to spend money where you don’t know if you will be succeed or failed.Thanks to those people who shared their knowledge.
Hello… enjoyed your post
Can I give your readers another quick tip
Before investing money, invest some time. Think about what financial goals you want to achieve and over what time frame. Be realistic. Easy to say, hard to do — especially when home prices have been rising for several years and still are. But like any market, real estate values may go down, and when they do it’s usually a sharp, steep drop.
Once you’ve decided how much of a time and money commitment you want to make, write it down. Make a one year to five year business plan in as much detail as you can, and then review it after six months and again after two years.
Part of that plan should be an estimate of how much capital you’ve got to invest, which will differ depending on whether or not you plan to use your primary residence as your first investment. Just as one example, if you have less than $10,000 to start with you are definitely looking at either using your own home or buying a ‘fixer-upper’ as your first venture. Hope this helps …Good luck in your investing.
This article has explained some of the points that i did not know in the market such as must of the self made millionaires invest in real estate market . This can be really helpful article for the real estate agents.