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A Five-Point Plan to Success in Real Estate Investment

Posted By: Alexandria Anderson | Posted On: 2008-02-21 | Article ID: 44442

Many people love to be mystified. Art mystifies them, so they gasp with pleasure and compliment the artist on his natural talent. The sciences are mystifying to them, so they don't even want to know what it is that scientists are actually up to. Real estate investment mystifies them, so they make the assumption that it's a big odds game and that certain people are either lucky, or that they have an inborn gift.

These people are unwilling to accept that succeeding in these disciplines and most others is just contingent on breaking a process down into steps and following through on your plan. Readers of the Rich Dad, Poor Dad book series by Kiyosaki know that, in the real estate investing game, there are five important steps necessary to succeed. Investor should:

1.Understand the language of real estate investment. That means to take in the basics of {accounting and finance and know how to read financial statements. These skills help you to determine whether a property is an asset and a drain. Also, it's important to know the basics of tax code related to real estate, not onlyin order to avoid making mistakes, but also to know where the best deductions for real estate are. Understanding the fundamentals of these subjects will give the investor the power to communicate effectively with his accountant and lawyers.

2.Keep experts close at hand. This is all about networking and studying the people who may end up as members of the team of investment experts who will assist him in the location and evaluation of real estate. The smart investor will get to know the community of real estate experts in the city in which he plans to invest his money, thereby familiarizing himself with the city itself.

3.Keep a close on the real estate markets. He should read up on various cities and learn what the experts have to say in their regard, but also take a look at them himself. He should study his home city twice as ardently, if that is the city in which he is planning to invest his funds. He should get to know the economy and learn which areas are more and less profitable. He should study what the rents in his marker and decide if a property in that area would assist him in reaching his financial goals. He should also personally visit and walk through as many properties as he can with his team of experts, even if he is not actually prepared to buy.
4.He should know the right and wrong way to negotiate with a seller. Many people simply have incorrect notions about negotiating. These people believe that the objective of each and every negotiation is to close the deal regardless of the circumstances, and to strong-arm the seller into his terms if at all possible. That is not the case at all. A negotiation's object is to get all of the information about the property out into the open. If the investor is able to make the relevant numbers add up to his advantage, and the seller agrees to his terms of sale, that is the point at which the investor ought to proceed and purchase the property. If this is not true, the {buyer should refrain from closing on the deal. According to Ken McElroy, writer of “The ABCs of Real Estate Investing,” the investor should go into every negotiation assuming he will walk away in the end.

5. Take care of the properties. This comprises just what you'd think. Conduct the necessary repairs and renovations to the property and get the empty units filled. Ensure that renters' wants and needs are taken care of.

This description represents a streamlined version of the process, but it is clear to see from these steps that anyone can learn to succeed in the real estate business. Nothing about it is really mystical or magical about it.

 

Article Source: http://www.articlecell.com

About The Author
Alexandria Anderson
Alex Anderson Uses The Minnesota MLS Real Estate Listings To Locate Quality Homes For Sale In Minneapolis. Download A Free Copy Of "The Investors' Rental Guide" At www.GreatInvestmentProperty.com



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