Invest In Real Estate Like A Pro

By Author: Alexandria Anderson
Total Articles: 46
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Perhaps the rich achieve their success because they've learned not to skimp on the basics. Many people , for example, may make the assumption that successful investors are just extremely lucky or that they've been born with some innate talent for investing.

That just isn't true.

What the rich do differently from other people, and what every successful property investor does, is prepare. Good investors do their homework.

The ABCs of Property Investing author Ken McElroy relates a story about one of his clients, who became a client of his after turning his investment into a complete disaster. Ken McElroy and his company manage properties for investors. Ideally, a property owner will hire a property management firm immediately, as opposed to taking a stab at managing the property himself from another city. That is what this guy did, and he quickly found out that the time required to do such a thing was too much for him to handle.

That wasn't this investor's only mistake. In addition, he had not even bothered to make a visit to the investment property prior to purchasing it, so he hadn't the faintest ...
... clue it was full of deadbeats. He had not bothered engaging a group of real estate investing experts who would have gladly told him not to buy property in that neighborhood, which was also full of criminals. It was a bad neighborhood, and he should've known to steer clear of it. In fact, he could have avoided it very easily if had he only done his research.

It's easy to imagine the prodigious amount of money he put into the rehabilitation of the building—funds he would have saved simply by budgeting for the real estate experts he so badly needed. There was not any way to fix the neighborhood in which the building was located, and therefore the building didn't have the potential to fetch high rent.

In nearly every case, the wise property owner can't afford to NOT employ a team of experts.

Rich investors are also possessed of an amazing amount of focus. That's the reason they are rich. They choose their target and they narrow their scope until they are zooming in on one piece of property. They already know what sort of investment property they want. As a matter of fact, they may concentrate on apartment complexes or hotels or another kind of property. They constantly keep in mind the areas that they're interested in and the age of buildings they're willing to consider.

In the event that their top choice of location does not yield anything that interests them, they move on to their 2nd choice, and onwards. But they always keep in mind what is and isn't acceptable to them.

One lesson being rich teaches people is that money opens many doors. Savvy property investors know you do not need to wait until a piece of property is put up for sale to purchase. If a potential buyer manages to take the owner by surprise, it is sometimes possible to get a good deal on a piece of real estate that is not even for sale. Best of all, there are no other potential buyers to drive up the price.

The rich do appear to inhabit a different world. For them, funds are always plentiful. They won't break a sweat if a deal does not go through, since they are confident there will always be others. A person hoping to increase his wealth substantially through investing may worry that he let one get away.

Ken McElroy says the best approach is to be detached, and to work under the assumption that every negotiation will result in the buyer leaving the table. The vast majority of deals just are not deals, McElroy says. The smart investor understands that it is dangerous to get committed to closing the deal.

Successful investors know all of this, not because they were born with this information, but because they've been taught, or else they have made the effort to learn. Anybody can potentially learn how to invest as the rich do; it simply takes practice and research.