There is so much written about the huge benefits of real estate investing. If you are considering it for the first time, you may well ask if it is as profitable as it is made out to be. You may also ask if it is as easy as is often claimed, especially for the first-timer.
Well, the answer to the first question is yes ? potentially, at least. The answer to the second is probably no, in the sense that first-timers don?t generally walk straight in and make a killing. But you CAN make it easier for yourself if you remember these pieces of advice.
1. Don?t be scared of making offers to sellers. It is easy when you are just starting out to be so afraid of rejection that it stops you making the offer at all. Especially if it is a ?no money down? offer. If you ask and get a ?no?, you can move on to the next project – it hasn?t cost you anything. You can be pleasantly surprised at how often you DON?T get a ?no?. But if you DON?T ask, you certainly can?t get a ?yes?!
2. Recognize the importance of seller motivation. This can be your prime factor in getting a good deal. So it could be worth making it your number one factor in searching for properties, with the condition of the property being secondary. But beware of seller ads that state ?motivated seller? up front ? this could be just a means of attracting interest. You need to do your own research in finding out the seller?s situation ? for instance if they have already bought a property and urgently need a quick sale.
3. Be careful of ?rehab?. Apparent rehab opportunities can be extremely tempting. Some people in fact find rehab deals an excellent method of cash generation. But these projects do tie up your capital for several months and take a huge amount of your time and energy before the profit comes. So some people feel rehab is not for them. But if you want to try it, do make sure (a) that you don?t over-pay for the property in the first place, and (b) that you factor in ALL the costs. That means, not just the money cost of the physical rehab but the costs in time, energy etc.
4. Never feel trapped into finalizing a deal. If you find a transaction has hidden pitfalls you didn?t know about, don?t feel you ?have to? complete the deal to avoid losing money you have already put in. Always retain control and decision power.
5. Don?t feel uncomfortable about making money from other people. This is not ?ill-gotten gains? or dirty money, it is money you have earned honestly and legally. If you have problems with this, it will prevent you from really profiting from real estate investment.
6. Don?t feel held back from real estate investment because you don?t know it all. You never will ?know it all?, but you must get started and recognize that there are many things you can only learn as you go.
There is nothing magic about successful real estate investing. There is no reason why YOU shouldn?t succeed, any more or less than anyone else. If you remember these bits of advice, it will make it just that much easier.
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