Basically, real estate investors can earn from three very lucrative business avenues and these include property management, joint ventures and wholesaling. To be successful, however, would-be investors need to be more than crafty in order to make it happen in a very competitive real estate world like ours today.
Real estate investment, just like every other business requires a special skill set combined with discipline and true leadership in order to really make it out there. Given that real estate investments come in different forms, One has to choose the desired form and become an expert in their chosen category. In this article, we shall be looking at steps to becoming an expert real estate investor, some of which are offered by one of the greatest real estate investor alive today, Robert Kiyosaki. Read on.
Eliminate The “Saving Mentality”
It is often said that if you want to get something for yourself, all you need do is save enough money in order to afford it. Well, as a real estate investor, you definitely have to eliminate this mentality. Robert Kiyosaki believes that the accumulation of wealth through real estate lies in one’s ability to invest in real estate. As a matter of fact, he went on to state that “ the money-saving mentality is what keeps a lot of people poor.” Should you learn and master the habit of investing rather than saving, you’d be able to make your money work for you than just sitting there in the bank.
The difference between a novice and an expert real estate investor is partly the amount of education between them. Having set your mind towards investing rather than just saving, education and getting updated in the real estate world comes next. The pair of Alexander Romanov and Viktor Rybachuk, real estate buyers and Cofounders of Iwillbuyhouse believe that hanging out with like-minded people is a key habit of people who want to become successful investors. You’d want to read books, attend seminars, and of course take advantage of the internet to acquire your needed education.
Understand the Basics
Before pouring your hard-earned cash into your first investment, you have to understand the basic advantages of investing says, Mr. Kiyosaki.
a. The Monthly Rental Gains
b. Tax advantages
c. Investment Property Appreciation
d. Easy Investment Property Financings
Understanding these key basics is the bedrock of your money-making journey.
Study Your Chosen Market
Studying your market could prove daunting as the market is often hard to predict. But, it remains a very important thing to do. Thanks to real estate giants like CoreLogic, Zillow, Redfin, and the likes. You could really depend on top-class analysis from these firms to navigate your way through the market.
Seek Only the Right Investment Property
As a new investor on the block, you’d want to pounce on your very first deal as quickly as possible. But this is no different from cashing in on a lottery ticket of which the probability of losing is really high. Just like the saying goes, you don’t marry the first man/woman you see. You have to date a couple before your final commitments. The bottom line remains that you have to find a list of potential deals, get to know those with a good return on investment before making the giant move.
Buy Below Market Value
Now that you’ve got your eyes on the target property. You’d want to learn how to buy below market value. As an investor, you should be on the lookout for short sales and foreclosures. These are the kind of properties that are normally sold below market value due to broken mortgage agreements. Buying below market value decreases the amount you pay for the property and increases your equity.