Tips You Must Do To Succeed As A Real Estate Investor
Over the years I’ve had personal experience with mentoring and I’ll draw on that experience to illustrate several approaches to asking someone to be a mentor to you.
Non-recourse financing. As you borrow more money, it is easier to borrow. Once you begin borrowing as a minimum two million dollars, it becomes non-recourse financing and this means the asset is the sole security for the loan. No person is personally promising the loan.
You should also read the newspaper every day to find your target. It’s not easy, but if you put a lot of effort there you will get the result. Watch for property sell off ads due to deaths, divorce, or immediate cash requirements. Try calling people who want to avoid real estate brokers since it will cost the seller commission. Since the owner is saving money on the commission, they probably can offer lower price.
See it through. Don’t believe you can become a millionaire overnight. property investing rewards those who commit to a well-structured investment plan over the long-term.
Lack of a clear goal is a huge mistake and is the single biggest error I see investors making, seasoned ones too. An investor without a goal is like a 4 year old without arm bands who’s wandered into the deep end of the pool – not a pretty site.
Another important criteria which needs to be considered are the price and the location of the property. Irrespective of how good the property looks from the outside, one cannot ignore the location factor. It should be decently proximal to the public transport, schools, shops, hospital and so on. These are factors which will play an important role when you actually come and start residing in the property.
Take your profits – pay the back taxes or quickly sell the property. Finally, pay off the back tax, or liquidate the property quickly. If you have the money, pay off the tax bill and try to sell for retail, or rent it out. You don’t have to pay the taxes – with 0 invested, you can afford to sell to another investor and still profit big-time!
Buying run-down homes and restoring them for selling or renting purposes can reap profits. The advantages of selling are that you can build up equity. The advantages of renting are that you can build a stream of positive cash flow. But, before you do this, you will need to consider some factors and do the math including a margin of safety.