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fall prey to schemes and scams that promise fast riches without risk but in reality, do little more than pass along outdated information.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.