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Booming Real Estate Profits From Baby Boomer Investing
In last week's article, called "Irrational Exuberance, Part II?," I discussed some of our concerns about what is happening in the preconstruction investment real estate market. What many people have asked me is "if you're so concerned about the...
How To Start Investing For Financial Independence, Part 2
Last week, we started a multi-part series about how to go from being a beginning investor to being “financially independent” in a steady and predictable way. Many, many people want to overly complicate this process so let's briefly, let's recap...
Investing in China
Investing in China can have a high pay off, but is usually a very high risk.
Investing in China can be a risk if you're not careful and depending on what you intend on investing in. For instance, if you are going to invest in the stock market,...
Investing in New Zealand - Learn how to Find Unique Investment Opportunities
Copyright 2005 Ofer Shoshani Investing in New Zealand might be much easier than investing in other western countries, thank to the excellent infrastructure, the low taxes and the assistance of the supportive NZ government. Technological Face of...
Online Investing - The road to a fortune or to ruin?
Online investing is becoming more and more popular with each
passing day, but is this really the way to make your fortune and
should you rush to join this online investing crowd?
Investing in individual company stocks and in...
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7 Simple Steps To Real Estate Investing
Whether you are BRAND NEW to real estate investing or an expert
in the game, it's critical that you understand these 7 Simple
Steps to real estate investing.
First things first...
* Real Estate is NOT a get rich quick scheme. However, if you
learn the foundations and put them into practice, you will make
more than enough money to realize any and all of your dreams and
goals.
* The real estate bubble is not going to burst! The real estate
market will, however, shift and the real estate market will
change - just as it always has! What's "hot" now may turn ice
cold in the next 3 years (or perhaps even 3 months). But, there
are ways to "bubble proof" your real estate investments. It's
actually quite simple.
Did you know that in the United States, in 1975, the
median home price was $33,300? In 2005, the median home price
was $195,000. Historically, the average home doubled every 7
years. If you do the math, it should be well over $200,000.
OK... Now, having said that... The real estate market WILL
change and what is "working" today in real estate may not in the
future... The rental market was strong a decade ago, but has
been soft in recent years. We are getting ready for a turn once
again.
Real Estate IS a cycle... and cycles have some degree of
predictability. With predictability, you can grow your real
estate business into a cash-producing, profit-pulling machine
that runs itself WITH the changing real estate market trends. It
is still possible to make money in real estate. In fact, now is
just as good a time as any to get started in real estate
investing.
But, you've got to make wise investments. Sure, you may make
some SERIOUS cash in pre-construction, but what happens if (no,
not if - when) the market shifts and there are suddenly 35
identical properties on the market for sale in the same
building? How long can you afford to carry a negative cash flow
on the property?
Or how about taking over property 'subject to'? Sure, it's a
great strategy and lenders may be inclined to turn the other way
and not exercise the "due on sale" clause as long as the
interest rates are at rock bottom prices (You know, those
sellers that you're usually taking property subject to from
usually don't have the lowest interest rates, right?) If the
interest rates spike to 10-11%, don't you think lenders might be
MUCH MORE inclined to exercise their option to make you pay off
the 6.5% note?
What this means is simply that you must be experienced in the
basics - the tried and true techniques, strategies and systems
that have worked in the past, are STILL working and will work in
the future. You've got to have all the tools in your bag so that
you can go with the flow and not be affected when real estate
markets begin to shift (which they are already in the process of
doing, in case you've missed that memo! ;-)
Step #1 - Set
Associated Websites
your plan: Figure out what your long term
real estate goals are (aka retirement and wealth building) and
figure out what your short term needs are with regard to making
money in real estate. Then, set up the proper entities and put
the plan in place.
Step #2 - Determine what your target market will be: You
cannot be all things to all real estate markets. If foreclosures
appeal to you, start investing in the foreclosure market. If you
want to be a landlord, look to out of state owners to focus your
real estate marketing efforts.
Step #3 - Be consistent and persistent: Real Estate is
not a get rich quick scheme. Real Estate is get wealthy over
time and put some quick cash in your pocket today. You've got to
follow your plan and stick with it to see real results in real
estate. You've also got to continue to increase your education
and your experience.
Step 4 - Don't fall into the "Analysis Paralysis": Learn
to analyze properties quickly. Don't get caught up overthinking.
It's quite simple actually: What's the property worth? What does
the property need for repairs? And how much can you get the
property for? It all comes down to numbers!
Step 5 - Become a master of finance!: Real estate is the
business of marketing and finance. You must learn about
mortgages and interest rates and loan programs that are out
there. You must know how to use finance to negotiate your deals
and to sell your properties.
Step #6 - Become a skilled problem solver: The reason
you will get real estate deals that others don't, is because you
are able to solve people's problems. Anything goes on the real
estate playing field. You've got to be ready!
Step #7 - You must continue your education: It is
important that you are always investing in your education and
learning new tactics, strategies and tips that will help you
make more in real estate.
If you enjoyed this article, make sure to look up the other
articles discussing The 7 Simple Steps To Making Money on Real
Estate. The next article discusses Step #1 - set your plan in
further detail!
The Next Level Institute is dedicated to helping real estate
investors - whether a brand new or a seasoned investor - become
more successful with less effort. Get your free 4-part
mini-course on finding deals AND learn the 7 keys to sucking in
the deals faster than a "Hoover" vacuum! Get your free e-book
at: http://www.7steprealestate.
com
About the author:
The Next Level Institute is dedicated to helping real estate
investors - whether a brand new or a seasoned investor - become
more successful with less effort. Get your free 4-part
mini-course on finding deals AND learn the 7 keys to sucking in
the deals faster than a "Hoover" vacuum! Get your free e-book
at: http://www.7steprealestate.
com
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