The Three Levels of Real Estate Investors

By: Kris Koonar

If you have been in the real estate business for quite some time, then its for sure that you probably have had some moments of failure and some impulsive lows. But if you view real estate business from a brighter side then you may gain an understanding of this business as a long-term success.

The final goal of real estate investment is to generate both the inert stream of cash flow that is needed monthly to live comfortably, as well as to create a substantial net worth. Your financial success is guaranteed by combining these two the cash flow and net worth.

Cash flow is the monetary gain which you earn and use every month to support your lifestyle, which you also can use to invest in buying assets that appreciate in value.

There are three levels through which real estate investment grows:

First level Investors - In this level the investors have learnt the tricks of the real estate business, and have proven that it is a profitable endeavor. They have accomplished this by making their initial deals profitable. Thus, Level One investors are sure that real estate is the path to their economic success. They are aware that there is much to learn, and if they understand then they can be successful at it.

Second level Investors - In this level the real estate investors have mastered the five core business skills of the real estate business and also have built a business to maintain a real estate portfolio. Second level Investors are those investors who have generated a cash income of $5,000 to $50,000 per month, and also an increment of about $250,000 in their net worth per year. Some investors, after reaching this level, think that they have reached the end-point of their achievement. They do not realize that there is so much that they can achieve further down the line, and that the compensations are worth their effort.

Level Three Investors -These investors have built a mini empire in such a way that they can earn a huge amount of income passively, which means that they dont have to personally look after the daily requirements of the business. Their earnings are equivalent to Level Two investors, but without the effort that they have to put in.

There are some basic steps by which investors can advance through these three levels:

Level One - As this level is about learning the basics of the workings of the real estate business, and demonstrating that it works, you need to climb three hurdles. Firstly, you have to change from just thinking about getting into the business, to actually doing it. You must go out and encounter the sellers to overcome your fears, and to realize your dreams. Secondly, you must learn about the basics of real estate investments from the best mentors and tutors. You can learn only after you have broken the sluggishness of inaction. And third, always step back for a moment and learn form your regular experiences, as this is the key to your success.

Level Two - In this you have to master the five core skills to be successful in the real estate business:
. Finding motivated sellers consistently
. How to master the art of negotiation
. How to briskly analyze the deals and differentiate them
. How to fabricate the deals into different categories such as lease options, short lease, cash sales, offered on a wrap mortgage and the like.
. How to write a deal and conceive the agreement part of investments.

Level three - In this level the key is self-belief. There is really no difference in skills other than the beliefs that support your ability to see the scopes that exist for lucrative deals. For example, there comes a point when it makes more sense in buying a shopping mall than more houses, which decision has the potential of generating ten to hundred times more cash flow.

The most important aspect for being successful at real estate investment is to analyze yourself on this spectrum, analyzing your position according to it, and figuring out how to forge ahead.

Investment
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