Home | Finance | Investments
Many people enjoy being mystified. The arts mystify them, so they congratulate the artist on his skill. They see science as a mystery, so they don't even want to know what scientists are up to. Real estate investment mystifies them, so they assume it's just a lottery and that certain people either are extremely lucky, or that they possess an inborn talent. They refuse to accept that succeeding in all three disciplines is simply contingent on breaking a process down into steps and following your plan through to fruition. Anyone who reads the Rich Dad, Poor Dad series by Robert Kiyosaki will realize that, in real estate investing, there are five key steps necessary to succeed. He must: 1.Learn the language of real estate investment. That means that you should take in basic {finance and accounting and know how to read financial statements. This knowledge will help you to determine whether a property is assets and potential drains. It is also important to know the basics of tax law in order to avoid making mistakes, but also to know where the best tax deductions for real estate 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 significance of what they tell him. 2.Keep himself surrounded by experts. A good investor will network socially in order to study the people who may end up as members of the team of investment experts who will assist him in the location and evaluation of properties. The smart investor will get to know the community of real estate experts in the city in which he is looking to invest his money, thereby familiarizing himself with the city itself. 3.Study the real estate markets consistently. The investor should study up on various cities and see what the experts have to say about them, but he should additionally evaluate them for himself. He should do this double time in his own city, if that is the place he is planning to put his dollars. The investor should get to know the economy and learn which areas are more and less profitable. He should study what the market rents are and determine if a property in that part of town would assist him in reaching his goals. The investor should also make personal visits and walk through as many pieces of property as possible with his team of experts, even if he is not prepared to make a purchase. 4.The investor should know the right and wrong way to negotiate . Many simply have incorrect notions regarding negotiation. They think that the purpose of every negotiation is to close the deal regardless of the circumstances, and to bully the seller into ceding to his demands. If the investor is able to work the relevant numbers to his advantage, and the seller agrees to his terms of sale, then the investor ought to go ahead with the purchase of the property. If this is not true, the {buyer should walk away. According to Ken McElroy, author of “The ABCs of Real Estate Investing,” the investor should go into every negotiation assuming he will walk away in the end. 5. Take care of your properties. This is precisely what it sounds like. Make the required repairs and renovations on the property and get the empty units filled. Make sure the tenants' needs are taken care of. This description represents a simplification of the process, however it is easy to see from these steps that anyone can learn to win in the real estate business. Nothing about it is really mysterious about it.
This free Investments article is brought to you by http://www.articlevista.com
Alex Anderson Uses The MLS Minnesota Real Estate Listings To Help Her Clients To Find Minneapolis homes for sale. Download A Free Copy Of "The Investors' Rental Guide" At www.GreatInvestmentProperty.com
Click the XML Icon to Receive Investments Articles Via RSS for Free.
^^Back to Top
Powered by Article Dashboard
