As I mentioned , there is risk involved . Any investment that can make money for you can also lose money . That ’ s a fact of life , but there are ways to tip the balance sharply in your favor . You can protect yourself by ensuring that contracts are written to your advantage , by paying attention to both what is in a contract , and also what ’ s not . It is imperative that you read and understand everything that is contained in the contract , including all clauses , and also foresee any contingencies that are not mentioned . You may even choose to have a real estate attorney to help you review property contracts to be sure that there are no “ gotchas .”
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 .
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Develop a simple plan . Keep your real estate portfolios local and plan to focus on single family homes at the beginning .
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 .
Invest for Success
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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 .