Keys to Real Estate Investing
Upon deciding to leave California, my home state, behind and embark on my own life in a new land, I decided I would focus my efforts on becoming self sufficient. I had an associates degree, and figured that if I focus my free time for the two years while I finish up my bachelors on developing an entrepreneurial plan, I would be able to live my life without ever having to work for another person again. Growing up in California showed me what living outside your means is like, what focused passion can do, and how powerful real estate can be, although my family did not profit greatly from this last boom. I knew that real estate was to play a major role in my path to success, and began researching real estate investing immediately upon my move.
I am going to explain some of the major keys I feel have played an integral role in helping me get to where I am now, with two deals under my belt and my sights set on 20 deals in 2007.
1. Network with local real estate investors. This has single handedly been the most helpful piece of advice that I have followed. I am a part of two real estate investment companies, partnering with multiple other investors who share the same goals as I do. To find real estate meetings near you, check out http://www.reiclub.com/real-estate-clubs.php
2. Developing a team. Just as linking multiple batteries together generates more power, linking brains toward a common goal creates more brain power. Also, if you are the smartest person on your team, your team is in trouble, and that your team is only as strong as your weakest link. Teams should be united from their common goals, values and different knowledge backgrounds.
3. Understand your local market. From the median house price, to the differences in neighborhoods; what someone can expect to pay for a newly developed home on a monthly basis, as well as the larger real estate cycle between strong and weak times for your particular market. All great sales people must intimately know their product, we are no different.
4. Develop and follow your particular strategy: Different market timings and fluctuations can call for slightly different procedures, but you must have an overall focus or strategy. This allows you to have something to reflect upon and measure your success towards that strategy. My strategy focuses on long term wealth, cash flow and short term income. This meets both my specific needs and the current local market conditions, you need to figure out what is best for you.
5. It is a numbers game. Once you have focused in on your segment of the market you are targeting, one must stir up as much traffic as possible. The more "No's" you hear, the closer you are to a "Yes." Many suggest one can expect to contact 100 owners, to find 10 interested and generally land 1 deal. I aim to land 1 deal per 25 contacts.
Real estate investors are salespeople, and we must acknowledge that. We are selling a service which includes our intimate knowledge of the market, and our ability to create win/win situations through alternative means. The more seriously we take our positions as investors offering a valuable service, the more valuable our service becomes.
I am going to explain some of the major keys I feel have played an integral role in helping me get to where I am now, with two deals under my belt and my sights set on 20 deals in 2007.
1. Network with local real estate investors. This has single handedly been the most helpful piece of advice that I have followed. I am a part of two real estate investment companies, partnering with multiple other investors who share the same goals as I do. To find real estate meetings near you, check out http://www.reiclub.com/real-estate-clubs.php
2. Developing a team. Just as linking multiple batteries together generates more power, linking brains toward a common goal creates more brain power. Also, if you are the smartest person on your team, your team is in trouble, and that your team is only as strong as your weakest link. Teams should be united from their common goals, values and different knowledge backgrounds.
3. Understand your local market. From the median house price, to the differences in neighborhoods; what someone can expect to pay for a newly developed home on a monthly basis, as well as the larger real estate cycle between strong and weak times for your particular market. All great sales people must intimately know their product, we are no different.
4. Develop and follow your particular strategy: Different market timings and fluctuations can call for slightly different procedures, but you must have an overall focus or strategy. This allows you to have something to reflect upon and measure your success towards that strategy. My strategy focuses on long term wealth, cash flow and short term income. This meets both my specific needs and the current local market conditions, you need to figure out what is best for you.
5. It is a numbers game. Once you have focused in on your segment of the market you are targeting, one must stir up as much traffic as possible. The more "No's" you hear, the closer you are to a "Yes." Many suggest one can expect to contact 100 owners, to find 10 interested and generally land 1 deal. I aim to land 1 deal per 25 contacts.
Real estate investors are salespeople, and we must acknowledge that. We are selling a service which includes our intimate knowledge of the market, and our ability to create win/win situations through alternative means. The more seriously we take our positions as investors offering a valuable service, the more valuable our service becomes.
posted by Miles at 1:01 PM
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