Real Estate Investing - What The Guru's Won't Tell You

By Author: Jules Carney
Total Articles: 4
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I have been down the real estate investing path for some years now, and have taken the time to get myself educated. If there is a new book, I have purchased it. If there is a new technique - I have examined it, a new seminar, I have looked at it, and I have been to several. I have talked to several investors and spent time looking at, and understanding the markets I choose to invest in.
It is almost trite to say that I think the best thing you can do for yourself when you enter any investment is to get educated. In fact, let me say that if you don't want to take time to get yourself educated, then you are not an investor - you are a gambler - or worse, a fool. I know that sounds harsh - but let's be honest, why would you put your money into something you have not taken time to understand? Worse yet, most of us do it anyway, handing our hard earned money (well I think of mine as hard earned) to someone without understanding even the fundamentals of what makes the investment sound, appreciate, depreciate, etc.
The Gurus like to say - you can take this seminar, or learn by your mistakes and take a more expensive ...
... seminar. True, true - you can make several mistakes in real estate investing, but you can in your seminar choices too. Not all are bad, and many are really good, but that is for another discussion.
As I mentioned previously, I have been to several seminars and often the rooms are packed; packed to the hilt with wide-eyed optimistic men and woman who, in many cases have had to stretch deep into their reserves to get here. They want it - and they want it bad. Problem is, most don't really know what they want, so they buy this seminar, this technique, and they haven't the foggiest idea what they are going to do once they leave the place. At the seminar, they get sold, up-sold, and cross-sold. I can't blame the Gurus - they are marketing machines and they promise riches. Can you get rich? Yes! Will you most likely get rich? That's up to you, but odds are, most people leaving that seminar will do nothing at all. This is something the Gurus also know.
You see, the problem is, when most people get to these seminars, coupled with the fact that they don't really know what they want, they don't understand that what they are getting out of the seminar. It usually consists of a technique or two that the Guru has mastered, then some discussion around entity, maybe a legal point and some bit of old marketing. What they are not getting, and the Gurus won't tell you this, is a business, or the skills to run a business.
But all you want is a couple of rentals you say? What makes a rental worth anything? How does the rental get filled, managed, maintained, improved? What are your insurance requirements, your liabilities if anything happens? How do you evict? How does it impact your taxes, or your overall net worth? How do I optimize my cashflow, while minimizing the impact on my occupancy rates? These questions are even addressing bigger business questions - if you happen to make this a business.
Here is a key that every potential investor needs to understand. Most people will not take the time to focus on anything but their fear, the fear of failure. The key is to acknowledge that we all possess that fear - understanding the fundamental of operating your business, along with innovative techniques builds the confidence you need to push past the fear. Most of you won't take that time - but those that do - understand they have the net already placed when they start walking the tightrope.

Jules Carney has been a real estate purchaser for 15 years, and an investor for 10. He is a virtual Investor and is currently starting his blog Real Estate On Training Wheels at RealEstateOnTrainingWheels.com