Whether you are brand new to real estate investing or an expert in the game, you must understand these 7 simple steps to real estate investing. When broken down, real estate investing can become a quite simple process that gives a profitable return if done correctly.
First Things First
The real estate market will shift and change – just as it always has! What’s “hot” now may turn ice cold in the next 3 years (or perhaps even 3 months). 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. It is still possible to make money in real estate. Now is just as good a time as any to get started in real estate investing.
Step #1 – Set 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 in terms of 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 hard work scheme. 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 – 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 can 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: You must be always investing in your education and learning new tactics, strategies and tips that will help you make more in real estate.
Investing in real estate can be a great way to build up your assets and wealth if done correctly.