What makes a good Real Estate Investor?
Has there ever been something in your life that you really wanted? How did you go about getting it?
– put money down and financed the rest
– borrow money from a friend/relative
– did you have someone buy it with you
– did you wait until you had the money
As we can agree these are all choices, which one any person would choose depends on the perceived necessity of the object of desire. It could be a new water heater, so that might limit your choices based on your current savings and income. But what if its a new car or house, what about an operation for your child? As you take this journey with me to learn about real estate investing, choices will be an occurrence that pops up alot, these will be referred to as options in the near future.
So in your desire to have your ‘object of desire’ would it be fair to say there might be a potential of Tenacity to find a solution?
As a Real Estate Investor “tenacity” is the belief, that a deal can be found and done, which means you don’t quit, you keep going. This means you will have to develop and take on new habits to force this tenacity, until they become second nature, like driving. Just like if you wanted to loose weight, you started new habits, exercise, changing what you eat, how you eat, with who you eat with and many others until your goal has been achieved.
Making the decision to BE a Real Estate Investor and creating the HABITs of a Real Estate Investor would include New Patterns AND the 3 things a Real Estate Investor does, over and over and over and over… even when they get good at it, they keep learning new skills in negotiation, advertising, relationship building, financing, etc.
These 3 things every real estate investor does are
- Find Leads
- Analyze the Deals
- Make Offers
Everything else is leveraged as referenced in the previous post of [3-basic-resources-of-real-estate-investing]
A moment ago I deceived you by intentionally pointing out some ‘skills’ a real estate investors needs to continually develop… let me clarify. It’s not that the REI needs to have in depth skills in each of these specialized areas, but the ability to know when each area is doing a better job and when to find better help. So technically the fourth thing a real estate investor does is to evaluate his/her team for efficiency.
Properties can be found in many, many ways from bird dogs, to realtors, to drive by’s, other investors, and the list goes on. A lot of these I am aware of, but there are still more to learn and then share more details about on my journey, assuming you are sticking with me on this quest.
Analyze the Deals
I’ll get in to this more in a future posts, but for right now, just know as I found out, analysing the deal does not just mean the numbers, the profit, the costs, it encompasses much more, for example what amenities are in the area, what could it rent for, who is your customer and much much more.
If you are receiving more “YESes” then you are paying too much, if you get more “NO’s” your doing it right, but the solutions presented for the deal may not be suitable to all parties. Again more details in subsequent posts.
The Value of You, the real estate investor.
Transitioning from a job to a part time or full time real estate investor requires a change in your paradigm. To put it in to more basic terms, it’s a fundamental change in approach or underlying assumptions of what you believe you can and what your worth vs what an employer states you are or your position is worth, in dollars.
Knowledge and experience that you have and take for granted or assume is common sense is a solution or valuable to someone who does not have the same qualities. As a Real Estate Investor you are the captain of your own ship, plotting courses based on education and shared experiences with other investors which are your strengths in combination with knowing and being able to find others that have different skill sets you can leverage or purchase on an hourly basis. That is to say, those who enjoy having jobs as opposed to your desire to become more flexible in your livelihood.
Realtors, Contractors, Lawyers, Book keeper, lead generation, and other members you would need to become a successful real estate investor are all sought out and hired. Your Value exceeds your time and you are now paying yourself for what you are worth, which increases over time as your performance becomes better and not what someone else says you are worth at a company position.
So do you think you could develop the tenacity to become a real estate investor? As you follow me along my journey, you will discover as I have been discovering, Real Estate Investing is a learned skill. AND YES I have met some people who are as dumb as rocks and as interesting as paint drying on the wall, but they follow a system. The system I am following created by mentors who do deals as a livelihood and who enjoy teaching and giving back to others, because they know, the government is not the solution to our problems.
This country was built by entrepreneurs who wanted a better life for themselves, their kids and community, so they took on the challenge, fell a great deal, but learned what works and what doesn’t. What if you were told what works and what doesn’t and even shown why? Would that take the pain or scariness out of becoming a Real Estate Investor?
I will conclude this post with some educational learning and value.
Good Questions to start in the mind of a new investor
- What is the Sellers Motivation
- Why are they Selling (Why, reminding me why, sounds like a nice house why are you selling again)
- Tell me about the house, what does it need?
- Tell me about the financing the current money owed, any back owed or past due taxes
- Tell me about the neighbourhood, the area, what’s here
- What do some of the homes around here rent for?
Learn about the Men Who Built America [http://www.history.com/shows/men-who-built-america].
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