Real Estate Investing - Self-Analysis
April 24, 2011 by Kenny Santos
Filed under Real Estate Investing
Most people just starting out in real estate investing focus on buzz phrases like, ?property analysis? and ?due-diligence?. The relationship between these two is important to any real estate investor, both experienced and inexperienced alike. The other aspect that is equally important, if not more important is self-analysis.
Now I don?t mean psychological self-analysis either. Self-analysis is about taking a good look at your own financial situation, knowledge of investments, resources, strengths and weaknesses, and personal preferences. When we first began our real estate investment company, we agreed that personal guarantees for loans for any project for the company was not in our best interest. This is an example of a personal preference. This obviously has an impact on how we conduct our business.
Many real estate investors face the reality of having to borrow money in order to begin purchasing real estate. A great place to start analysing is your own wallet. Then match that to your personal preferences. For instance, if you were to consider buying a ?fixer upper? and you had $5000 in your bank account. You would have to consider your options based not only on the amount of money in your bank account, but also the implications of borrowing money. This includes your credit, your personal assets, your family situation and the risks involved.
Bullets are always nice, so here are some to help you focus on what should be considering before ?going for broke? (which is what you want to avoid):
Money in bank
Access to more money if needed
Credit
Possible risks to credit
What do these risks mean to you (how much do you care about them)?
Family - how will this effect your family?
Current assets
Current debts
Take these bullets and then match them to the following:
What are the potential problems that may arise?
How well prepared are you to handle these challenges?
How well do you handle pressure?
What experience do you have?
What are some resources you can use that can help you?
What money sources can you access if needed?
Who do you know that can help you?
How can you meet people that can possibly help you?
Do you want to do what it takes to actually start meeting people in the business?
What if you lose all your money?
What if your credit is destroyed?
What if you lose everything you have?
On a scale of 1 - 10 (1 = Absolutely No Risk and 10 = Extremely High Risk), how risky is the investment strategy?
Those ?what if? questions are probably the most scary out of the bunch and they are also the root of what keeps many people from taking the first step toward making that first real estate investment or starting their own business. Regardless of these questions, if you want to start investing in real estate or start your own business, these questions have to be asked honestly.
But look at the entire list also! Part of the power of the ?what if? questions are that they overshadow all the other options. The self-analysis you do is an absolute must. Any person who is considering real estate investing as a viable option for wealth building has to answer these questions on their own. No one can answer them but you.
Self-analysis is important because knowing yourself is the first building block to success. You?ve got to understand yourself and be honest. If you sugarcoat it, you will ultimately fail. There are so many different ways to begin a career or business in real estate, it?s almost unbelievable. But no matter what path you choose, you?ve got to sit down and look at yourself seriously. Where there are strengths, grow them and where there are weaknesses, work on them. Real estate investment success or business success in general, does not happen overnight, neither does self-analysis. Sit down, figure it out. Then go out and make money!
?2007 noobdogs.com
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Noobdogs.com offers a place for fellow new investors in real estate to ask questions and get good, sound information they can understand. Noobdogs.com is owned and operated by AmeriCountry Realty Group LLC. Founded in 2006 by Tom McGiveron, a Behavior Specialist and entrepreneur, noobdogs.com is becoming the premier site for new investors to achieve success in personal development and real estate investment. |
Real Estate Investing - Self-Analysis
March 3, 2011 by Kenny Santos
Filed under Real Estate Investing
Most people just starting out in real estate investing focus on buzz phrases like, ?property analysis? and ?due-diligence?. The relationship between these two is important to any real estate investor, both experienced and inexperienced alike. The other aspect that is equally important, if not more important is self-analysis.
Now I don?t mean psychological self-analysis either. Self-analysis is about taking a good look at your own financial situation, knowledge of investments, resources, strengths and weaknesses, and personal preferences. When we first began our real estate investment company, we agreed that personal guarantees for loans for any project for the company was not in our best interest. This is an example of a personal preference. This obviously has an impact on how we conduct our business.
Many real estate investors face the reality of having to borrow money in order to begin purchasing real estate. A great place to start analysing is your own wallet. Then match that to your personal preferences. For instance, if you were to consider buying a ?fixer upper? and you had $5000 in your bank account. You would have to consider your options based not only on the amount of money in your bank account, but also the implications of borrowing money. This includes your credit, your personal assets, your family situation and the risks involved.
Bullets are always nice, so here are some to help you focus on what should be considering before ?going for broke? (which is what you want to avoid):
Money in bank
Access to more money if needed
Credit
Possible risks to credit
What do these risks mean to you (how much do you care about them)?
Family - how will this effect your family?
Current assets
Current debts
Take these bullets and then match them to the following:
What are the potential problems that may arise?
How well prepared are you to handle these challenges?
How well do you handle pressure?
What experience do you have?
What are some resources you can use that can help you?
What money sources can you access if needed?
Who do you know that can help you?
How can you meet people that can possibly help you?
Do you want to do what it takes to actually start meeting people in the business?
What if you lose all your money?
What if your credit is destroyed?
What if you lose everything you have?
On a scale of 1 - 10 (1 = Absolutely No Risk and 10 = Extremely High Risk), how risky is the investment strategy?
Those ?what if? questions are probably the most scary out of the bunch and they are also the root of what keeps many people from taking the first step toward making that first real estate investment or starting their own business. Regardless of these questions, if you want to start investing in real estate or start your own business, these questions have to be asked honestly.
But look at the entire list also! Part of the power of the ?what if? questions are that they overshadow all the other options. The self-analysis you do is an absolute must. Any person who is considering real estate investing as a viable option for wealth building has to answer these questions on their own. No one can answer them but you.
Self-analysis is important because knowing yourself is the first building block to success. You?ve got to understand yourself and be honest. If you sugarcoat it, you will ultimately fail. There are so many different ways to begin a career or business in real estate, it?s almost unbelievable. But no matter what path you choose, you?ve got to sit down and look at yourself seriously. Where there are strengths, grow them and where there are weaknesses, work on them. Real estate investment success or business success in general, does not happen overnight, neither does self-analysis. Sit down, figure it out. Then go out and make money!
?2007 noobdogs.com
|
Noobdogs.com offers a place for fellow new investors in real estate to ask questions and get good, sound information they can understand. Noobdogs.com is owned and operated by AmeriCountry Realty Group LLC. Founded in 2006 by Tom McGiveron, a Behavior Specialist and entrepreneur, noobdogs.com is becoming the premier site for new investors to achieve success in personal development and real estate investment. |
Real Estate Investing : Daily Aberration Investors Make
July 20, 2010 by Kenny Santos
Filed under Real Estate Investing
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In real estate investing, a common question is which came first, the deal or the plan. A common aberration that people make is not knowing what to do with a great property after they buy it. This is where the struggle begins. They are stuck in a corner because they approached this from the wrong direction. First, you are supposed to make a method. Then you must find an applicable home that fits into that situation. Planning things is human nature. Future matters such as retirement and college education are all planned. Real estate deals should be planned as well. A rookie investor may jump ahead of the game and forget to concoct a plan. It is up to you to figure out what you will do in the real estate market. What houses will you buy and how do you plan on selling them? Having a method is in your best interest. Unfortunately, there is no way to get rich quick in real estate. We all tend to fantasize about the big million dollar deals, however, real estate investing is a gradual process. Proceeding slow and steady, will keep you in the right direction to reach your goals. Becoming a millionaire from your first deal is not a realistic goal, but you will probably make some good money. A good investor will usually make about sixty to one hundred thousand per year with decent investments. This income takes into account that not everything will go according to plan, but assumes that your progress will be steady. You must have rational real estate goals. No single person can do everything. There are imperative roles that must be filled by some key people if you plan on succeeding at real estate investing. The adept investor always has a team of specialists assisting him. Your real estate agent must be honorable and able to help you analyze the properties. You will need an appraiser and a contractor or an inspector in order to make sure that the house is worth the investment. If you don’t want any hidden surprises surfacing through the course of the deal, you unconditionally must hire an attorney. You will encounter many situations in the real estate business, and there is no single strategy that encompasses everything. You must have several strategies at your disposal. Investors often find themselves reselling a house urgently after buying it. If you simply don’t have time to get your investment ready for a profit, renting is another valid option. However, there are time periods where the rental market can become ineffective or stall. If you are in this circumstance and absolutely must get rid of the property. you still have the option to offer a land contract or lease option. You may have to sell to cut your losses and sell to another investor if all else fails. A adept investor acts quickly when it’s time to bail. A rookie investor can refrain from making these mistakes by doing some research and planning. Until you understand the business, you shouldn’t figure out what real estate to invest in. Research one of the books containing the strategies used by the pros. Attend free seminars that will inform you on the best way to invest. Making adept decisions in your real estate investing will certainly help you avoid these common miscalculations.
Article Tags: investor, make, real
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