Many people love to be mystified. Art mystifies them, so they ooh and ahh and compliment the creator on his talent.
| They find science mystifying, and so they aren’t even interested in what researchers are doing. Real estate mystifies them, and so they make the assumption that it’s a big odds game and that certain people either are very lucky, or that they possess an inborn talent. |
These people are unwilling to accept that succeeding in each of these disciplines is just a matter of formulating a series of steps and following your plan through to fruition. Anyone who reads the Rich Dad, Poor Dad book series by Robert Kiyosaki know that, in real estate investing, there are five important steps necessary to succeed. Investor should:
| 1. Understand the language of real estate investment: This means to have a working knowledge of basic accounting and finance and learn to read financial statements. These skills will give you the ability to distinguish between assets and potential drains. |
Also, it’s important to learn about tax law, not only in order to avoid mistakes, but in addition to know where the great tax deductions for real estate are. Understanding the basics of these subjects will also make it possible for the investor to know what questions to ask his accountant and lawyers upon hiring them, and to understand the significance of what they tell him.
2. Surround himself with experts.
A successful investor will network socially in order to study the people who may wind up on the team of real estate experts which he will hire to help him find and evaluate real estate. The smart investor will get to know the community of real estate experts in the city in which he is looking to invest his money, and thereby get to know the city.
3. Study the real estate markets consistently.
He should study up on various cities and see what the experts say about them, but he should additionally evaluate them personally. He should do this double time in his own city, if that is the he is planning on investing there. The investor should get to know economic factors and which areas are more and less profitable. He should study what the rents in his marker and determine if a property in that part of town would help him reach his goals. He should and walk through as many pieces of property as he can with his team of experts, regardless of whether or not he is actually prepared to buy.
4. He should know the right and wrong way to negotiate.
Many people have misconceptions about negotiation. These people believe that the purpose of every negotiation is reach a closing by any means necessary, and to strong-arm the seller into ceding to his demands. If it turns out that the purchaser can work the relevant numbers to his advantage, and the seller agrees to his terms of sale, that is the point at which the purchaser should go ahead with the purchase . If not, the {investor should refrain from closing on the deal. According to Ken McElroy, writer of “The ABCs of Real Estate Investing,” the investor should go into every negotiation assuming he will walk away in the end.
5. Nurture your properties.
This comprises just what you would expect. Make the required repairs and improvements on the property and get the vacant units filled. Make sure the renters’ needs are addressed.
This description represents a simplification of the process, however these five simple steps show that real estate investment is a process which can be learned by anyone. Nothing about it is really magical or mystical about it.
Alex Anderson Specializes In [http://minnesota.greatinvestmentproperty.com ]MN Investment Property And Helping People Locate [http://greatminnesotarealestate.com/contact/ ]Real Estate In Minneapolis. Download A Free Copy Of The Investors’ Rental Guide At http://www.GreatInvestmentProperty.com
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