Now , I promised that I would provide you with stepbystep instructions to Invest for Success . This is a quick thumbnail sketch of the 7 steps involved in the process and important points to know . You ’ ll tailor a plan for yourself , but this will give you a good start .
1 . Develop a simple plan . Keep your real estate portfolios local , and plan to focus on single family homes at the beginning .
2 . Learn your market . We touched on this earlier because it ’ s important to know prevailing costs per square foot , develop the capability to assess quality , and have a good working knowledge of which amenities are desired in your area . That will give you the ability to spot bargains . Using a mentor who has succeeded in real estate investing can help you fasttrack this process .
3 . Think like a businessperson . Like any business , you will want to buy at wholesale and sell at retail . You ’ ll make businesslike assessments of each property to determine whether it should be held for rental income or sold for resale profit .
4 . Learn to identify hidden bargains and act quickly . Acting quickly does not mean acting impulsively , though . You still will carefully structure your contracts with contingencies and the option to assign the contract , which will protect your interests and profit potential . If your plan is to flip , be sure beforehand that no “ major surgery ” on the property is required . Any improvements you plan to make should be visibly beneficial and have the potential of raising the rental price or the resale value .
Image by Gerd Altmann from Pixabay
Image by Gerd Altmann from Pixabay
5 . Learn landlording . Even if you plan to turn the task over to a professional management company , you still need to know the fundamentals of how to manage properties and tenants . Otherwise , how will you know whether a management company is doing a good job for you , or not ?
6 . Establish trade accounts with companies such as building supply stores . This will enable you to save money , get into the loop with local tradespersons and other real estate professionals , and build your line of credit . It will also help you establish good bookkeeping , which gives you a sound basis for business decisions on your properties . I suggest keeping a daily log for your expenses . You ’ ll be glad you did when you ’ re doing your recording keeping , and at tax time .
7 . Borrow money for your investments . You can use banks , 50 / 50 partners , or private individuals . When you use sellerassisted financing , creative financing terms are often possible , such as shared future appreciation on the property or nomoneydown deals .
In summary , decide what you ’ d like to do , and ensure that you have the proper knowledge and formula for success to make it happen . Remember that nothing at all happens for you unless you take action , so why not get started on your dream today ?
Your partner in prosperity ,
Dr . Albert Lowry
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