real estate investors Archives

Who Can You Trust?

May 5, 2010 by Marco Santarelli

Our "favorite housing economist" Dr. Bob Shiller thinks the market (especially housing) is already overheated. "We are in a very unusual circumstance," says Shiller, "because of the massive bailouts, the homebuyer tax credits, the Fed's purchase of mortgage-backed securities – and these things are coming to an end. I don't trust the trend we have."

"So the question is, are we at risk for even more price increases, and another bubble? I think we are at risk, but I'm not predicting it," says Shiller. "I think it's more likely we don't do so well from here," Moneynews reported Shiller telling The Motley Fool.

So is that "a yes, a no, I know, or a maybe?"

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How to Create Your Own "Luck"

April 8, 2010 by Marco Santarelli

Are you lucky? Research shows that few people answer in the affirmative when presented with that basic question. Of course, even the most preliminary reflection would demonstrate that “luck” is highly subjective at best – yet when asked about “luck” everyone seems to have a clear idea of what it entails… and who it seems to bestow itself upon.

Upon closer inspection, it appears that those considered “lucky” by themselves and others actually share several important traits. Savvy real estate investors would do well to adopt these easy to implement practices in their personal and professional lives:

1. Proximity – Like the old adage “success breeds success” it seems your mother was right. The company you keep DOES matter! Learn how to put yourself in the right place at the right time with the right people by creating opportunities to learn from others, network and form strategic relationships that create ‘win-win’ opportunities for all involved.

2. Practice – You’ve heard it before but we'll say it again…practice really does make perfect. It’s one reason we bring in experts for our webinars as well as put together all the tools you need to get started. Rather than having to start from the beginning, you have the advantage of using our experience (and practice) to jump-start your own portfolio of properties.

3. Persistence – If at first you don’t succeed – try and try again… it’s actually good advice. Most “lucky” individuals are actually highly motivated and simply don’t stop. When evaluated by their number of failures, many are not extra-ordinary whatsoever. Instead, they simply persist when others stop.

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5 Common Mistakes of New Real Estate Investors

April 6, 2010 by Marco Santarelli

For new real estate investors, learning what mistakes to avoid can reduce risk and prepare you for success. Often these mistakes can be easily corrected with the right education.

"Real estate investing fever" has hit like a plague. Zillions of "newbie" investors are jumping on the bandwagon trying to make a profit after losing big in the stock market. I meet them all the time, and many are making big mistakes!

Mistake #1: Stock Market Mentality

You'd think after losing $7 trillion in the stock market, people would have learned! Nope, they are making the same mistake, which is assuming that what happened yesterday will happen tomorrow. Nine out of ten new investors I meet say they are interested in real estate because they saw someone else make money from the rapid appreciation of the market in the past.

But, buying real estate solely for short-term appreciation is often a big gamble! If you buy investment property to hold for ten years or more, chances are that you will come out on top. If you buy a property and flip it in within a year, you'll probably do fine, too. And, despite the risk, many people can intelligently time the "boom" of a local market (or subdivision within a market) and make a profit. But, if you buy a rental property for full-market price with break even or negative cash flow, you'd better have a backup plan if the market doesn't keep going up. Investing is a lot like surfing; if you don't know how to ride the wave, you can drown!

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