Aug
08
Written by:
host
Friday, August 08, 2008
Do's and Don't of Successful
Real Estate Investors
Recently I was asked for some do's and don'ts to being a successful real estate
investor for a radio interview and it was an interesting exercise to grab all of
these thoughts together.
I thought I'd share these with you and ask that you add your own from your personal
experience:
Do's
#1 Build a strong team that supports your long term vision. All of whom should have
extensive experience with real estate investors. These include: accountant, corporate
lawyer, real estate lawyer, mortgage broker, realtor(s), research source, fellow
investors.
#2 Eliminate 'Day Trade' mentality with real estate. Stock markets can move substantially
on a day to day basis and because of this many investors watch their stocks every
day. With real estate, there is no get rich quick... it is a long term process that
is driven by long term economics. Fluctuations will always occur in the market.
#3 Study the economics that support your region - rather than national 'averages.'
Become a specialist in one or two geographic areas. The smaller your niche the more
apt you will be to be successful. It will be easier for you to stay focused on what
matters to YOUR bottom line.
#4 Focus on positive cash-flow - no matter what the market conditions positive cash
flow is important and makes your life easier and allows you to get closer to your
Personal Belize.
#5 Don't be afraid to ask anything of anyone. Learn from those more successful (or
more experienced) than you. If they are too busy to help, ask someone else. There
are no bad questions and definitely no reason to play the loan wolf trying to solve
problems on your own.
Don'ts
#1 Don't allow yourself to get too high when you hit a home run or too low when
you make a mistake. This also goes for market conditions, if the market is screaming
hot, don't get caught up in it and when it comes back to normal don't talk yourself
into being too low. It is what it is and as a business owner you can't afford the
emotional roller-coaster.
#2 Don't line-up for a pre-build condo. That is speculation not investing.
#3 Don't buy a property just because it seems cheap - you may quickly find out that
it wasn't so cheap after all.
#4 Don't let a property promoter sell you a property without you doing your own
due diligence on the area. If you fell pressure to buy, step away! The quick decisions
are always the ones that turn into the mistakes.
#5 Don't ignore tax planning in your overall scheme. Speak to a real estate accountant,
give them your plan so they can help structure your whole program
#6 Never, Ever buy a piece of real estate based on a 'Tip' always follow your system
-don't skip steps they are there to protect you during market fluctuations. Many
skip steps in the ACRE System during hot market times only to find that the
steps they skipped are the ones that would have saved them during real market conditions.
The steps are there for a reason not just for fun.
visit www.myREINspace.com discussion forums to post your do's and don'ts
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