How to Win at Real Estate in Five Steps

Posted on February 23, 2008
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by Alexandria Anderson
Many people find pleasure in being mystified. Works of art them, so they ooh and ahh and congratulate the creator on his or her natural talent. They see science as a mystery, so they aren’t even curious about what it is that scientists are doing. Real estate investment mystifies them, so they make the assumption that it’s just a gamble and that some people either are lucky, or that they must have been born with a gift for investing.

The truth is that success in each of these three disciplines is simply contingent on formulating a series of steps and following through. Anyone who reads the Rich Dad, Poor Dad series by Robert Kiyosaki will realize that, in real estate investing, there are five important steps necessary to succeed. He or she must:

1.Understand the language of real estate investment. This means to take in basic {finance and accounting and learn to read financial statements. These skills help you to determine whether a property is assets and potential drains. Also, it’s important to learn about real estate and tax law in order to avoid making mistakes, but in addition to know what the best tax deductions for real estate are. Knowing the fundamentals of these subjects will also make it possible for the investor to know what to ask his lawyers and accountants upon hiring them, and to understand the implications of what they tell him.

2.Keep experts close by. This means networking and studying the people who may end up on the real estate investing team of experts who will assist him in the location and evaluation of real estate. The smart investor will familiarize himself with the real estate investment community in the city in which he is looking 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 see what the experts have to say in their regard, but also evaluate them personally. He should do this double-time in his own city, if that is the he is planning on putting his investment funds there. He should familiarize himself with economic factors and which areas are good news, and which are bad news. He should learn what the rents in his marker and deduce whether or not a piece of property in that part of town would help him reach his financial goals. He should and walk through as many properties as he can with his team of experts, regardless of whether or not he is prepared to make a purchase.
4.He should know the right and wrong way to negotiate . Many simply have the wrong idea regarding negotiation. They believe that the object of every negotiation is reach a closing by any means necessary, and to strongarm the seller into bring to light any pertinent facts regarding your potential property. If it turns out that the purchaser is able to work the numbers to his advantage, and the seller agrees to his terms of sale, then the purchaser should go ahead and purchase the piece of property. If these conditions are not met, the {purchaser should walk away. According to Ken McElroy, author 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 property. This means exactly what it sounds like. Conduct the required repairs and renovations on the piece of property and get the empty units filled. Ensure that tenants’ wants and needs are taken care of.

This is a simplification of the long road to real estate investment success, however these five simple steps demonstrate that investing in real estate is a process which can be learned by anyone. Nothing about it is really mysterious about it.

Alex Anderson Is A Licensed Minnesota Real Estate Agent Who Helps People To Purchase Money-Making Minnesota Investment Properties. Get A Free Copy Of "The Investors’ Rental Guide" At http://www.GreatInvestmentProperty.com

Article Source: Article Junction