Many people find pleasure in being mystified. The arts mystify them, so they gasp with pleasure and congratulate the writer or the artist on his or her skill. The sciences are mystifying to them, and so they aren't even interested in what researchers are actually up to. Investment in real estate mystifies them, and so they assume it's just a lottery and that some people either are quite lucky, or that they were born with a natural talent .
The truth is that success in these disciplines and others is just a matter of breaking it down into steps and following your plan through to fruition. Readers of the Rich Dad, Poor Dad series by Robert Kiyosaki will realize that, in the real estate investing game, there are 5 essential steps the serious real estate investor should take in order to achieve success. Investor must:
1.Understand the language of real estate investment. This means to have a working knowledge of basic {finance and accounting and learn to read financial statements. These skills help determine whether a property is an asset and a drain. It is also important to know the basics of tax code related to real estate in order to avoid making mistakes, but in addition to know what the great tax deductions for real estate investors are. Knowing the fundamentals of these subjects will also make it possible for the investor to know what questions to ask his accountant and lawyers when he hires them, and to understand the implications of what they tell him.
2.Keep himself surrounded by experts. This is all about networking and studying the people who may wind up as members of the team of investment experts which he will hire to assist him in the location and evaluation of real estate. The smart investor will get to know the community of real estate experts in the city in which he is looking to invest , thereby familiarizing himself with the city itself.
3.Keep a watchful on the real estate markets. The investor should study up on various cities and see what the experts say about them, but additionally evaluate them for himself. He should study his own city twice as ardently, if that is the he is planning on investing there. He should get to know the economy and learn which areas are more and less profitable. He should learn what the rents in his marker and decide if a piece of property located in that area would assist him in reaching his financial goals. The investor should also as many pieces of property as he can with his team of experts, even if he is not actually ready to buy.
4.The investor should learn how to negotiate, and how not to negotiate . Many have incorrect notions about dealing with sellers. These people are under the impression that the purpose of each and every negotiation is reach a closing by any means necessary, and to strongarm the seller into ceding to his demands. If the purchaser is able to work the numbers to his advantage, and the seller will accommodate his terms of sale, then the purchaser should go ahead with the purchase . If this is not true, the {buyer should walk away. 'The ABCs of Real Estate Investing,' by Ken McElroy states that the investor should go into every negotiation assuming he will walk away in the end.
5. Take care of your properties. This means precisely what it sounds like. Conduct the required repairs and renovations to the piece of property and get the empty units filled. Ensure that tenants' wants and needs are taken care of.
This description represents a simplification of the process, however these five simple steps show that anyone can learn how to win in the real estate business. There is really nothing mysterious about it.
