How To Succeed At Real Estate In 5 Steps

By Author: Alexandria Anderson
Total Articles: 46
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Many people enjoy being mystified. Works of art them, so they gasp with pleasure and compliment the creator on his great gift. Science mystifies them, so they don't even wonder about what researchers are really up to. Real estate mystifies them, so they make the assumption that it's just a big odds game and that certain people either are lucky, or that they must have been born with a gift .

They refuse to accept that succeeding in each of these disciplines is just contingent on breaking it down into steps and following through on your plan. Anyone who reads the Rich Dad, Poor Dad series by Kiyosaki will realize that, in real estate investing, there are five essential steps the serious real estate investor should follow . He must:

1.Learn the language of real estate investment. That means to have a working knowledge of basic {accounting and finance and learn to read financial statements. These skills help you to determine whether a property is assets and potential drains. It is also vital to learn about tax law, not onlyin order to avoid mistakes, but in addition to know where the best tax deductions ...
... for real estate are. Knowing the fundamentals of these subjects will give the investor the power to communicate effectively with his lawyers and accountants

2.Keep himself surrounded by experts. This means networking and studying the people who may end up on the team of investment experts which he will hire to help him find and evaluate real estate. He should get to know the real estate community in the city in which he is looking to invest , and thereby get to know the city itself.

3.Study the markets consistently and closely. The investor should read up on various cities and see what the experts have to say in their regard, but also evaluate them for himself. He should study his home city twice as ardently, if that is the he is planning on putting his investment funds there. He should get to know the economy and which areas are more and less profitable. He should find out what the market rents are and deduce whether or not a property in that area would assist him in reaching his goals. The investor should visit as many properties as he can with his team of experts, even if he is not ready to make a purchase.
4.The investor should learn how to negotiate, and how not to negotiate . Many people have incorrect notions about negotiating. They believe that the purpose of each and every negotiation is to close the deal no matter what, and to bully the seller into bring to light any and all facts about your potential property. If it turns out that the purchaser is able to make the relevant numbers add up in his favor, and the seller will agree to his terms of sale, that is the point at which the purchaser ought to go ahead with the purchase of the property. If this is not true, the {buyer should refrain from closing on the deal. The ABCs of Real Estate Investing, by Ken McElroy states that the investor should go into every negotiation assuming he will walk away in the end.

5. Take care of your property. This is exactly what it sounds like. Make the required repairs and improvements on the property and fill vacant. Make sure the renters' needs are taken care of.

This is a streamlined version of the process, however it is easy to see from these steps that investing in real estate is a process which can be learned by anyone. There is really nothing mysterious about it.