3 Things Every Real Estate Investor Should Know
As you get more immersed in real estate investing, you’ll hear it over and over – real estate investment isn’t like any other kind of investment. Yes, at the core of all investments, there’s money and risk involved. The major difference is that in real estate investing, you are responsible for the work required to make a return on your investment.
If you want to be successful in real estate investing – and you wouldn’t be involved with it otherwise – there are some key pieces of information you need to know. This information holds no matter which area of investing you get involved in.
How To Locate Properties
Properties are the lifeline of real estate investing. Without them, there’s no money to be gained. Your success hinges on your ability to find properties. Not just any property, but solid investment opportunities, better known as deals. Just because you see a property for sale doesn’t mean it’s a good real estate investment. You’ll need to find out more information about each potential deal before you can say with certainty whether it’s a good investment deal or not.
How To Negotiate Deals
Once you start finding investment properties, you must be able to negotiate a deal that works in your favor. Otherwise, you’ll make little to no profit. In some cases, you might even incur losses. If you’re not good at negotiating, take some time to read a few books on the subject. Once you learn core negotiating skills, you’ll have the ability to go into a deal and work out the terms so everyone walks away happy, mostly yourself.
How To Invest
In its simplest form, investing is all about putting money in and getting more money out. In real estate investing, there’s quite a few ways to do this. Some investors like fix-and-flips, while others invest in distressed properties, or foreclosures. It’s best to decide early on the strategies you’d like to use. Learn as much as you can about those strategies – who has ownership of the property, what’s their goal, how much money is at their disposal. The better you understand the strategy, the easier it will be to invest in real estate.
The sooner you learn these key skills, the sooner you can start making money in real estate investing. There’s a lot of information available in books, magazines, and on the internet. Use as much of it as you need to learn the skills you need in real estate investing.
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Great tips, Bill! Very simple and easy to understand yet so true. Thanks for sharing! 🙂
@Rachel – Thanks for stopping by my blog. I appreciate your comments 🙂
Good post Bill! My biggest tip to people who are new to negotiating is to leave your emotions out of it. Decide what range is acceptable before you go in and then stick to it. If you feel yourself getting emotional remind yourself that you need this less than the person you’re dealing with. The person with the higher need has lower control.
That’s my two cents for today!!
Excellent point Julie! Becoming a “motivated buyer” and trying to make the numbers work is never a good thing!! 🙂
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