How To Suceed As A Real Estate Investor

You've probably heard stories of people's wild success with real estate investing. You may also have heard horror stories from people who have purchased property and lost money. What makes the different? How do some people make tons of money and others lose money and credit?

KNOW WHAT YOU'RE DOING. The first step to success as a real estate investor is to know what you're doing. Many people have a general idea of how a lease option works, or comprehend the basic principle that drives a short sale, and just about everyone understands renting. That sort of knowledge is not good enough.

Read every book on real estate investing you can find. Read every chapter. Read the recommended reading in the back if there is any. Then read books on general business practice. Read books on marketing. Buy out your local bookstores, then raid amazon.com. Knowledge is power, so the more knowledge you have, the better position you'll be in.

A word about national real estate investment training: national training is heavily advertised, widely discussed, and promoted as very successful. It certainly can lead to success. Most of the students who complete the training, however, find themselves out $25,000+ and unable to actually make the strategies they learned work in their area. Much of what the classes cover can be found in other sources for far less money. Some of what you'll need to know can only be discovered by talking to people who work specifically in your region. You'll need to judge your learning style and other opportunities you have to decide whether or not that sort of training would be effective. I also suggest getting a mentor. Someone who will teach you the ropes and walk you through the process. I had a mentor and it was the best investment I ever made.

As a real estate investor, you'll need to know how to approach sellers, buyers, renters, lenders, loss mitigators, tax folk, and a whole slew of others. You'll need to have solid contracts for the business you want to conduct, and you'll need to know what those contracts mean and be able to explain them to others. You'll need to know how to save a close when there are last minute problems. You'll need to know the laws particular to your state. You'll need to understand your real estate market in a way that will enable you to choose which investment strategies will be most helpful. Books can help you with much of this.

Knowledge is integral to success in real estate investing.

HAVE INTEGRITY. Most likely you're considering real estate investment because of the profit margin, but financial profit is not everything. I'll agree that it's important; however, as a real estate investor you'll have a tremendous amount of power to make others' lives better. Those who work to help other people ultimately benefit themselves. Word will get around that you are a great person to work with--compassionate, helpful, available to work through issues--and that will bring you more opportunity. You'll have great references to offer new clients, and you'll get referrals from people you've worked with in the past.

Full disclosure to everyone is always recommended so that no one is unhappy at the end of any one of your deals. That's helpful to all involved, and is a good general business principle. If you run a professional, above-board business more people will be willing to work with you, and they'll choose you over other investors who may not have good reputations.

Honesty, integrity, and compassion only lead to more business and true success.

MAKE OFFERS. Taking action seems like an obvious step for real estate success, but many would-be investors view house after house and never make an offer. Most would say they're afraid to take the risk. I would say if you've followed the first step and know what you're doing, the risk is calculated and negligible. Surgeons aren't considered to be incredible risk-takers for the simple fact that they know what they're doing. If something goes wrong, they have the knowledge and skill to fix it. Real estate investors should be the same way. There is risk in any investment, but if you know what you're doing and you know what a good deal in your area looks like, you can make an offer with confidence. It's trite, but you'll never succeed if you don't try.

Follow these three steps, and you'll be light years ahead of other investors who bumble their way through, just trying to make a quick buck, wasting others' time. Know what you're doing, do it with integrity, and get out there and make it happen.