Friends, Family and Others – Those around you will not necessarily agree with your choice of occupation or investment, some may even consider you crazy and try and talk you out of it. This is a genuine way of earning an income and some people do very well out of it. You need to remain positive and focused. It is often futile trying to make all your family and friends understand what you are doing or why as no amount of explanation will make them understand or agree with you. Learn to accept their view but not adopt it.
Auction Fever. Do not get carried away in the excitement of an auction. Many a novice bidder has paid far more than a property was worth because they did not know when to stop. In the heat of battle in the auction room you must remain cool and dispassionate throughout otherwise you risk paying way over the odds for your property. Remember property investing is like any commercial endeavor – you should buy low and sell high. Don’t blow all your profits in a crazed few minutes through a desire to “win”.
When people think of buying property, they often think of numbers. They ask about the price, discounts, interest rates, loan terms etc. Very few experts (and real estate books for that matter) point out the importance of identifying motives. Because believe it or not, knowing the motives of the seller is crucial when negotiating for a reasonable deal.
Investors can receive either the property (for tax deeds) or the amount of their investment plus interest (for tax liens). The real beauty of this is that the big money on Wall Street has often overlooked this opportunity to make more money in such a secure manner. More and more pension funds are investing in this manner because of the safety and the high rate of return. Who cares that I cannot go to a cocktail party and talk about stocks. At least my principal grows and grows every year.
The sub prime lender bust. With the fall in sub prime mortgage lenders, there are people who cannot qualify for houses and foreclosures are up. This means that the demand for rentals is going up.
Repair or replace the driveway if it is cracked or damaged. A driveway that appears very old or damaged will make the property itself seem like it wasn’t taken care of.
Provide a washer and dryer – People hate going to the laundry mat. It costs money, it takes time, and they’re often dirty and populated with less-than-attractive people. Buy a washer and dryer for the property, and by spending a few hundred dollars, the landlord can raise the rent by .00 a month and have the washer and dryer paid for within a year or two, plus they have gained a huge advantage over the competition.