10 Secrets Every Real Estate Investor Should Know
Success in any business is the direct result of your experience and the knowledge you have. Regardless of the industry, there are key elements (or secrets, if you are partial to buzz words) that will insure success. Of course, you have to know how to utilize the information; otherwise you’re on the fast track for failure. This is especially true for a real estate investor.
To get started on the right foot, here is a list of 10 things that everyone investing in real estate should be privy to.
- Utilizing the knowledge of others – This article is a prime example, and if you’re reading it you’re already on the right track. There are only two distinct ways that a Real Estate investor can gain knowledge, and that is from learning from the mistakes you make or the mistakes that others make. If you cannot or will not learn from the mistakes of others, you are certain to repeat it on your own. The secret is to learn from others and avoid the pain of learning the hard way. Making your own mistakes can be costly, especially when you are involved in buying real estate. Jump start your success by finding a good real estate mentor, reading all the available content that is available to you, and listening to audio files or podcasts from industry leaders involved in real estate investment.
- Make quality offers – One of the secrets to success is to make quality offers consistently. You cannot be successful if you do not put your foot out there. It is essential that you place numerous offers. If they are accepted, you end up with multiple deals on the table to profit from. Consequently, if you are not offering anything, then there can be no good deal. A good deal is the building block of success in real estate investing. Without it, you are spinning your tires and you make nothing because you get back exactly what you put in when it comes to investing in real estate.
- Finding good deals – Making a good deal is important, but what is just as important is finding good deals. There are some points of investment within the market that require you to simple walk up and hang your hat on it. Others are a good deal waiting to happen; you simply need to know how to target the person on the other end of the deal to focus on their desires. Revealing what they want in a deal can give you a big bargaining chip toward a profitable real estate investment.
- Obtaining the Money – There are not too many people that keep a shoe box full of money hidden away with enough money for a good investment. It pays to have networking ties in various positions. These organizations and/or individuals can be tapped when necessary to create a chain of financial backing for your real estate investing projects. It is vital to know that the money is there before you try to secure any deals. This will help you produce a faster turnaround on closing a deal.
- Damage Control – Every home on the market needs some TLC. When you are involved in real estate investment or you are flipping real estate, you need to take the time to fix up the property so the property is marketable. The more care that has been put into a home, the higher that ultimate value to a consumer/home buyer.
- Marketing the Property – You could have one of the nicest homes within the city limits. You could have your money tied up in some fantastic property waiting to sell. You could be waiting a long time depending on the marketing method. While no particular method is sound, a bad marketing strategy (poor photos, bad ad placement, poor content writing) can cause more disinterest than if you had done nothing at all. Real Estate investors should market a property as carefully as they completed the work on updating the home. Why throw the investment and time away at the last stage?
- Property Management – It is exactly what it sounds like. Homes require maintenance, even when they are empty. That falls on the real estate investor and agent. Homes (even foreclosures) need to be managed regularly and tended to so they are in proper shape when a walk through or sale is forthcoming.
- Prepare offers for acceptance – Making quality offers is important, as mentioned above, but it is also important to make offers that have a chance of being accepted. When it comes to investing in real estate, a balance has to be maintained. Make offers that are low enough to be accepted, but high enough to ensure a substantial return on your time and money.
- Appraising – You can make valuable, viable offers if you have no idea what you are getting yourself into. You need to be able to determine the total value of property when you are involved in buying real estate or real estate investment. The fastest way to determine true value is by paying a professional appraiser to review everything. It’s effective, but not the most logical choice when you’re trying to maximize your payout. Sometimes it’s best to find an inexpensive way to deal with this issue. Thankfully, there are pro-realtors that work with investors on issues such as this to provide accurate information for similar properties. This helps you determine the value of the property you’re examining.
- A desire for success – Not just any desire. You need to be on fire for it. There is a lot of time, energy, and work that goes into managing real estate investment. Your own attitude can make up for many early mistakes that would sink a lesser real estate investor.
Keep your eye on task and these tips in mind when you consider your next real estate investment and you will see a change in your investment conversion, guaranteed.