Real Estate
Investment
How to get started in Real Estate
Investing
Get into
'good company'
'Creative' real estate
is non-traditional, which means that most investors don't do it this way.
Thus, most people you speak to might tell you that it won't work. Telling
them that you heard it in an informative session will probably prompt them
to laugh and call you 'gullible'. Attorneys and other professionals will
probably denounce it, because it sounds unusual. Keep in mind that these
people are either threatened by their own lack of success or are looking
to protect their own ideals.
Therefore, the first
thing you should do its join a local real estate association since these
associations will help you keep your thoughts in the right place and prove
to your subconscious mind that it really does work, despite the opinions
of the various self-proclaimed 'consumer watchdogs.' If you cannot find a
group, form a 'mastermind' group instead that meets for breakfast once a
week.
Have a core
team
It is best not to wait
until you have a deal brewing to find the players. You need to find the
following players on your team to be effective:
o Attorney who that does real estate deals for himself as well as
others
o Title or Escrow Company that caters to investors who
understand double closings, land contracts etc.
o Insurance Agent
who understands land contracts, landlords, etc.
o CPA that is
aggressive and owns real estate
o Contractor who will give you
free estimates and knows how to 'cut corners' in the right
places
o Mortgage Broker who is savvy, creative and experienced
with investors
o Partner who you may need for money or
experience
o Mentor who
you can call to smooth out the rough spots
Avoid Unmotivated
Sellers
This is the biggest
mistake I see beginning investors make. They waste time talking to sellers
who are marginally motivated or else completely demotivated. Still worse,
they drive by the house and look for comps without even talking to the
seller first; one must never visit a house before speaking with the seller
over the phone.
It helps to be
Persistent
Anyone who has
experience in sales will vouch for the fact that few deals are ever made
on the first try and in reality, most deals are made after contacting a
prospect for the fourth or fifth time.
Have a follow up
system ready like a salesman to schedule follow ups and keep a running
history of calls and conversations.
It helps to be
Educated and well informed
You can lose more
money with a mistake than you can while learning how to avoid one hence,
even if you have been at this business for years, you need to keep up with
current trends and laws.
It helps to Have a
Plan
One should not just
wander around looking for deals, but should instead have a plan. Make
phone calls and spend money on advertising while making several offers per
week and pass out business cards each day. Eventually, your efforts start
to get paid.
It helps to be Treat
this as any other regular Business
People who get lured into real estate
because of the quick buck that it promises are bound to be disappointed
since this is not the case. You need to treat real estate like any other
business and give it time, effort, attention and professionalism, and it
will flourish before you know it.
