Being Skeptical and Cynical in the Real Estate Investment Game

By: Ajay Albertson

Some will liken real estate investing to playing a game of chance. These people think it is just a matter of luck and that makes them take either of two possible mindsets. These people will either jump into investing without looking first, or they'll steer clear of investing altogether, seeing it as nothing but a hoax.

Although a degree of skepticism is an admirable attribute, it isn't good for a person to be so incredulous they never make a move. Kiyosaki's Rich Dad book series portrays real estate investing as easy. Too easy, in fact, if you don't realize the Rich Dad books are simply preparing the future investor to learn about investing on his own on real estate investing. The books themselves aren't a complete education, but merely an introduction.

After finishing a few of Kiyosaki's books, it is possible to know the very, very basics of real estate, and that everyone has the potential to grow into a prosperous investor. Skeptics who are not so incredulous they see the whole investment game as a sham, will understand that there's much, much more to learn regarding real estate investment.

The realistic skeptic (as opposed to the bitter or fearful skeptic) realizes that research plays a key part in the ultimate success or failure of a real estate investor. It is important to know the way in which one must go about doing that research and what information one needs to gain from the process, and one must also put that knowledge into practice by actually carrying out that research.

Beginning investors ought to study up on the cities in which they are interested, learning about the economy, whether the area is attracting people in or repulsing them, whether new business is coming in or whether businesses are shutting down. These are only a few of the things a real estate investor needs to know regarding an area in which he plans to buy property, but they are vital ones.

The true skeptic knows that just because he reads an area is doing wonderfully, it doesn't mean that further research isn't in order. Facts must be verified by consulting with more than one or two sources. Cities must be visited. Officials must be met with. Experts must be consulted.

A smart skeptic assumes nothing. Skeptics do their research, as do successful investors. They allow experts to direct them to more experts. They speak with local politicians and businessmen. They get these experts and citizens to back up their impressions instead of simply giving shining reports on their city.

The process is about hard work and questions. The wise investor isn't afraid to ask questions and lots of them - It's an important part your education. A little bit of skepticism never hurt anyone.

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