Tuesday, September 24, 2019

what an investor needs to properly invest in real estate

what an investor needs to properly invest in real estate

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After many years in the sector, from listening to real estate experts, from reading specialized books, we have been able to draw up a list of recommendations or advice on what an investor needs to properly invest in real estate.

 Recommendations to start investing in Real Estate

1. Start immediately. The best way to learn is by doing.

2. Collaborate: Find good team members to help you achieve your global vision.

3. Be someone who closes, not someone who Pose. If you can't close it, don't bid.

4. Always put everything in writing - leases, contracts, notices, and the most basic of promises, all must be put in writing.

5. Do not try to learn from everything. Acquire all the general knowledge you need to discover what you are most passionate about, and then focus on it.

6. Understand how the location is directly proportional to the value of the homes.

7. Have a clear vision of why you want to be a successful real estate investor, and what you need your investment business to do for you.

8. Take action. We are all afraid when we are doing something that pushes us out of our comfort zone. The only way to avoid fear is to take action and discover that there really wasn't much to fear. It will be awkward at first, but like anything else, he will get used to it and most likely he will get excited.

9. Subcontract as much as possible to maximize your time. Always aim for a high return on your investment, but please do not expect something for nothing (... it will not happen).

10. Choose an investment strategy and master it before moving on to another. It is very easy to get distracted by the "bright object syndrome" and lose concentration. Don't be tempted to "get into" a lot of different strategies when you just started.
11. Don't get emotional. Do not miss good deals just because you do not imagine living in them and do not buy something you love if the math does not work.

12. Set viable goals and activities. How many offers will I make each day, week, month? That equals the amount of offers that I will close each month. You must track your workflow. What is measured is achieved. -

13. Sit down with someone who invests in real estate (hopefully your own real estate agent) and ask questions such as: "How many real estate have you bought?" And "What is your main objective - Buy and Hold or Buy and Sell?" Ask how many times it has failed too. -

14. Focus on cash flow. This is the gold source of income that will boost the value of all other aspects of your real estate business.

15. Do not worry about money. Focus on finding the best offer before the money to finance it. Investors invest in business, not conversations and marketing.

16. Treat your real estate only as a real business. This means creating an action plan, implementing those actions and growing your portfolio over time.

17. Partner with people like you. If you want to become a successful owner - find other successful owners to hang out with, either online or in the real world. -

18. Expect the best but have a plan for the worst. Always have several exit strategies and contingency plans regardless of your goal or your investment strategy plan. No matter if you are reforming or buying and maintaining, you must be prepared for the CHAOS! -

19. Make sure you are relevant. Research what is happening in the market in which you are going to invest before spending time, money and resources.

20. Establish a successful mindset, this is what I refer to as the "rule of the universe" - what you expect tends to become the reality you create. Keep your head down, work hard and hope to win. If you do this long enough, one day (sooner than you think) you will see that the reality around you will have changed for the better.
21. Expect the unexpected from the Tenants. Plan for the worst and get a pleasant surprise when you get a great tenant. Tenant planning usually involves money; or periods without tenants, making property repairs to items that do not work and tenants who do not pay. It is essential to have the reserve funds available to manage these drains of money for periods of time.
22. Do not be afraid to ask for help. There are many details in real estate that can be overwhelming. One of the best things about experienced investors is that they have all been in place. Go to more experienced investors with your questions, since there is no such thing as a stupid question.

23. Focus on increasing rental income and without disturbing your good tenants. The best way to do this is to be attentive and flexible to the reasonable requests of the tenants. It is much easier to increase rents to happy renters, than to those with whom you have been struggling. -

24. Spend time learning math. Mathematics will keep you away from buying a bad business, which is more important than buying a good one! -

25. Get the money, then hand over the keys. Always collect the security deposit and any rent paid in advance before allowing a tenant to move to a property. Don't just accept a personal check, but rather make sure that the money is in your bank account before handing over the keys.

26. Understand the difference between passive income and active income. Active income means that you work for your money (and secretly, most real estate investments really require a lot of work). Being able to differentiate between working for your money and being able to earn is passive income (there is a big difference!)

27. Buy properties in large neighborhoods with good school systems and with great highway access.

28. Create a plan. You don't have to have a detailed business plan with every little detail included to succeed, but a plan is necessary. Knowing what strategies you are going to take, what criteria you are looking for, what your exit strategies are, what your financing possibilities are, and other key details will help you be more successful. Having a plan is essential to know where to invest your money.
29. Set specific and measurable goals to achieve investment success. Example: I want to buy my first rental property for September 2016. Work that goal backwards until you define the specific tasks you need to do each week to achieve that goal. -

30. Love and worry about people. Try to give value to people's lives every day.

31. Don't give up. People don't get success because they want it, they get success because they really want to succeed and that's why they fail and learn, and fail, and learn and improve, and change, and become incredible, they succeed, because they are willing to do something that others are not willing to do.

32. The Network of Contacts is everything. Things are going wrong in every real estate transaction - a good network of contacts will help you succeed despite the inevitable obstacles. -

33. Automation focuses completely on systems and keeping things simple. The most successful investors I know have a system for everything. A good system: it saves you the time you have for yourself, energy and money. And a good system should be simple, it shouldn't be complicated. And why do you have systems? To delegate them, of course! -

34. Get a mentor. You can read all the books you want, but it is not the same as what it means to be in a real estate business, looking at the project, and walking through someone who is an expert in evaluation, solution, and sale ... the property in which you invested.

35. Talk to as many investors as you can in your area and online. Learn what local investors are doing and how. Take them for lunch or coffee and learn by example.

36. Find a real estate agent who knows the market where you are going to invest. They can help you find the right opportunities to meet your budget and goals. Successful investors tend to repeat clients so that the Real Estate Agent has a personal interest in their success.

37. Have a specific action plan for an investment type. Decide exactly what you want to do as an investor; either reform, maintain, be speculator etc. Focus on that type of investment and learn everything you can about it. Do not try to learn and do everything at once. Once you master a topic, then you can move on to another if you wish.

38. Investing in real estate is not emotional, it is a business! If the agreement does not make good financial sense, leave it. -

39. Recognize what is good and dedicate yourself only to that. Hire or partner with the best possible people to make up for your weaknesses (we all have them). -

40. Be open-minded, flexible and creative. Prepare to turn around quickly and when you find a successful purchase and a sales channel keep working until it doesn't work anymore and then quickly have to turn to where market changes are heading. Build long-term relationships and your own investment platform.

41. The purchase of an investment is significantly different from the purchase of your home or your vacation home. Do not fall in love with the property and do not wonder if you would like to live in it. When it comes to investment properties, look at the numbers to see if they make sense as an "investment" and not as if it were your next dream home.

42. Learn from your mistakes and don't let the same mistake happen twice. When a mistake is made, get up and move on without hesitation.

43. Saving is important. You will need money either to buy new offers or to contribute funds for existing ones. Be sure to save as much as you can.

44. Learn the Art and Science of Persuasion.

45. The only debt you must have in your business is the assets that pay for themselves. Do not take loans for liabilities that do not carry their own weight! This is completely unsustainable, and one of the fastest ways to mismanage your business.

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