Investing is without a doubt the best path to financial wealth. Unfortunately, there is very little taught about this topic in our school system. On the other hand, entrepreneurs are always looking for different ways to achieve better results. Many of these like-minded people will end up investing in real estate, one of the most tried and true investing options that's available to all of us.
A recent Entrepreneur article provided these seven useful tips for those starting out in real estate investing:
- Plan your financial goals
- Don't spend a fortune on books/tapes/seminars
- Look at plenty of properties
- Don't postpone starting your investment for the "unicorn" property
- Do a thorough financial analysis
- Don't try to buy property that the seller is not motivated to sell
- Do know the difference between real estate investing and the business of real estate"
These tips are GREAT! In my opinion, every investor should practice all seven points on a regular basis. Obviously, as the investor builds experience, all of this can be done much more quickly, but these suggestions should never be overlooked. All of this due diligence is essential to a successful investment. To sum it up, I suggest:
- Just Do It - Take a cue from Nike. The hardest thing most everyone has to overcome is spending large portions of their savings on an investment property. You can read and research all you want, but just like everything in life, it all comes down to experience. Start making offers today, and you'll quickly learn that the best deals go very quickly.
- Build a Team - having real life people to mentor you and brainstorm with is essential. The more eyes reviewing potential deals, the better.
More importantly, if your investing in an area like California with very high home prices, you may need extra capital that your team members may be able to provide.
Teams might include:
- Property Management Companies
- Insurance Agents
In the end, we all have our own strategies for successful investing. Start by writing down yearly goals and work backwards to figure out how you'll meet those goals on a daily basis. Real estate investing isn't rocket science - it's more of mindset that can help you to achieve financial freedom.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer