6 Principles of Real Estate Investing
Here are some real estate investing techniques that you may experience, or want to learn when dealing with investment properties. To that point are new ways of doing business that are something to keep in mind. Knowing all the latest types of funding is a different method that can also be very useful. You will be using all of these, but nevertheless you want to have an idea of what the basic principles are. To follow, I will discuss 6 in brief detail.
1. Know the numbers backwards and forwards.
3. & 4. Be prepared for the unexpected.
5. Set goals and timelines.
6. Learn, and apply what you learn.
Real Estate Empowering Principles
1. Real estate investing is about relationships and contacts. Individuals are your most precious resource, and the more of them you have, the more likely you are to find good places to buy, or purchase your holdings. Recognize the right individuals too, get to know as many real estate agents who handle the type of listings that you are concerned with.
2. Know and understand the relevant figures. When you see a rental property, for example, you should already be calculating the numbers in your head on the income, expenses, and the capitalization rate, or “cap rate.” Calculate any positive changes you make, and run figures on how this will produce income, and what that would do to the rate.
3. Search for and use methods to reduce risk. Have a review, funding, and other contingence clauses in the offer, so you’ll get your deposit back if your deal falls through. Always have your exit strategy planned out before you buy, and have a “plan B.” Value real estate using comparables or cap rates, not “hunches.” It’s wise to establish, and then buy through your corporation or LLC.
4. Have business cards, pen and paper on you at all times. Sometimes, when you mention that you invest in real estate, sellers, buyers and other investors suddenly appear with selective information, opinions, and sometimes even good deals.
5. Create action-oriented goals with timelines, not just wishes. For example, require yourself to look at a certain number of properties per week, or maybe write up a certain number of offers each month. Set goals for all sorts of little steps, like making six phone calls per week, checking online listings twice per week, and so on. Repeated action creates habits, and good habits lead to more successful real estate investing.
6. Knowledge is power so aim to learn something new everyday, and use that education. Learning from books, magazines and even tapes or CDs is a great idea, just as long as you spend as much time implementing the knowledge learned instead of not putting it to use. Some of us let the interest and enjoyment of reading about investing get in the way of actually empowering. Good selective information is crucial, but it should also lead to good real estate investing.
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1. Know the numbers backwards and forwards.
3. & 4. Be prepared for the unexpected.
5. Set goals and timelines.
6. Learn, and apply what you learn.
Real Estate Empowering Principles
1. Real estate investing is about relationships and contacts. Individuals are your most precious resource, and the more of them you have, the more likely you are to find good places to buy, or purchase your holdings. Recognize the right individuals too, get to know as many real estate agents who handle the type of listings that you are concerned with.
2. Know and understand the relevant figures. When you see a rental property, for example, you should already be calculating the numbers in your head on the income, expenses, and the capitalization rate, or “cap rate.” Calculate any positive changes you make, and run figures on how this will produce income, and what that would do to the rate.
3. Search for and use methods to reduce risk. Have a review, funding, and other contingence clauses in the offer, so you’ll get your deposit back if your deal falls through. Always have your exit strategy planned out before you buy, and have a “plan B.” Value real estate using comparables or cap rates, not “hunches.” It’s wise to establish, and then buy through your corporation or LLC.
4. Have business cards, pen and paper on you at all times. Sometimes, when you mention that you invest in real estate, sellers, buyers and other investors suddenly appear with selective information, opinions, and sometimes even good deals.
5. Create action-oriented goals with timelines, not just wishes. For example, require yourself to look at a certain number of properties per week, or maybe write up a certain number of offers each month. Set goals for all sorts of little steps, like making six phone calls per week, checking online listings twice per week, and so on. Repeated action creates habits, and good habits lead to more successful real estate investing.
6. Knowledge is power so aim to learn something new everyday, and use that education. Learning from books, magazines and even tapes or CDs is a great idea, just as long as you spend as much time implementing the knowledge learned instead of not putting it to use. Some of us let the interest and enjoyment of reading about investing get in the way of actually empowering. Good selective information is crucial, but it should also lead to good real estate investing.
Keywords: , Realtor in San Antonio Texas, San Antonio Tx Realtor, San Antonio Realtor, San Antonio Realtors, San Antonio Texas Realtor, San Antonio Homes for Sale, Realtors San Antonio, San Antonio Real Estate Buying a Home, San Antonio Tx Real Estate, Real Estate San Antonio
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