Investing in real estate can seem confusing to the beginner. However, no other asset class offers the level of security or the kind of earnings that real estate does. As a result, it can be a way of life for the investor once he / she gains enough experience. To assist you in deciding whether or not real estate investment is for you, Jeff Adams, the #1 real estate trainer, has these following tips.
Do Not Hold Properties for Personal Reasons
Remember, you are investing in order to do business. The very first rule of business is to separate your personal work from your professional one. Ensure you have a good business plan in place which will stand good for the next ten years.
Chalk out your goals and how you plan to achieve them. Make both short term goals and long term goals which can be evaluated periodically to understand where you have reached.
Do your Research
If you are a first time investor, do not simply jump into the market based on advice from friends or family. That ‘hot property’ you have been told repeatedly about might just be a disaster waiting to happen. Instead, read up on the real estate market for the city you are planning on investing in much before you commit any money. Do not let personal intuitions form the basis of your investment plan.
Have a Good Relationship with a Bank
As real estate investors, having a good working relationship with a bank or a mortgage broker can be a very useful tool. Apart from financing your investments, banks are usually a good source of information about properties which can be acquired for cheap. Do not ignore this however since finance is very important for you as an investor to stay in business.
Credit Scores are Important
Most financial lenders today ask for a FICO score of 700 or above before lending you money for investment into real estate. Use a third party site to get your credit score along with the credit history provided by credit bureaus to understand just how willing banks would be to lend you money.
Keeping your credit scores healthy should be your number one priority as real estate investment without the chance of being funded by lenders can be a daunting task.
Mingle with the Local Investors
Never stay in isolation making decisions solely on research. Many a times, property that looks just perfect on paper might be a trap. Interactions with other local investors, who have been in the market for a long time, are the best way to quickly grasp the details of the local investment scenario.
Apart from the gossip and the joy of interacting with other people who are in the same field as you, speaking to other investors might net you that tiny little tidbit of information which might result in a great investment.
Jeff Adams has been a real estate investor for 16 years and has bought and sold over 500 single-house homes till date. Attend one of his talks today to find out more about how you can earn a lot of money with real estate investing.
