To make it in the real estate investing game, you need to understand 2 fundamental points. Now there are many, many things to learn about real estate investing, the different markets and property types that you can get into and become successful with, but at the base of it all, if I could boil it all down, I would boil it all down to these two most important keys to successful real estate investing.
1. Finding and Buying Undervalued Properties
Let me just dispel a misnomer that many people think when they first get started investing in real estate. And that is that they can buy into a property, fix it up or whatever their strategy is, and then turn around and sell it for more.
It doesn’t work that way…
And if you approach investing this way, and can almost guarantee that you will get burned, and probably burned badly.
You see, the real estate market is made of comparables. In other words, the value of any one property is determined by objectively looking at the surrounding properties, comparing their features and benefits, and most importantly, what they have sold for in the recent past.
So with that in mind, understand that real estate investing is a game of buying, not selling.
You must buy the property for significantly less than it is worth, or you won’t make any money.
2. Avoiding Cash Flow Issues
The second most important thing to know about real estate, is that it is not a liquid market. In other words, when you invest into a property, it is not easy to pull your cash back out. And sometimes, you can get stuck with a property for a much longer time than you hoped for, especially in down markets.
You must be prepared for this. If you take out a mortgage to buy an investment property, and the payment is, say, $1,000 per month, you need to be prepared to carry that mortgage at least 6 months longer than your optimal plan. Nothing hurts worse than putting a property on the market, and instead of it taking 4 months to sell, it takes 10 months to sell. You must be prepared for this.
So by now I have probably left you with more questions than answers. But that is precisely the goal of this website, to answer your questions and help you to become a “Mega” success.
So simply enter you email in the box below, and you’ll learn exactly what you need in order to become successful in real estate.