Real Estate Investing For Your Future

Everyone wants to be rich, right? Well, actually, everyone says they want to be rich. But few people want to actually take responsibility for taking control of their future. And that’s what you have to do in order to get rich: Take control.

Easier said than done, right? Not really. There is so much literature on the bookshelves about how to do it, anyone can learn how. And that is the key. You have to learn. You have to educate yourself. If you think that there is simply too much material out there and you wouldn’t know where to start, then you can stop worrying, because you’re already making yourself financially smarter. Simply by visiting this site and reading these articles, you are giving yourself an important education that will give you the tools to take control of your financial future. You are one step closer to being rich.

Not only are you one step closer to being rich, but I am going to tell you what you would learn if you were to read every single book in the financial section of the book store. It’s not about complex accounting principles or Wall Street magic. You can hire professionals to take care of those kinds of details for you. What you will gain from truly learning how to get rich is this: You have to change your thinking habits.

That’s it. The fact of the matter is, you only have to get out of the habit of thinking like an employee and start thinking like an investor.

I’ll give you a moment to digest that one. It’s such a simple concept, it can take you by surprise. But it’s true. Just think about the kinds of conversations you and your fellow employees tend to have when you’re talking about your jobs: ?If only the boss would let me do this.? Or how about, ?I can’t do that?I’d lose my 401K!? The employee mindset is a fearful one, dependent on the system to take care of them. Oh sure, they put in the hours so they can have a roof over their head. And that’s exactly what they get?a roof over their head. Maybe a two-week vacation once a year if they’re lucky.

If you want more than that?to be rich, for example?you have to start thinking like the people who control the money. Think like the people who work smart, not hard. With a little thought, you can figure out how to make your money work for you.

Now, who are the people who work like that, who actually control the flow of money in our economy? You might be tempted to say ?corporations,? and you would be right to an extent. But corporations are not people: They are financial entities. Think about the people behind the entities and you are on the right track.

That’s right?the businesspeople. But they are only near the top of the food chain. If you go to the very top, what you find is…investors.

Investors are at the top of the food chain because they know how to make their money work for them, instead of slaving for their money. And they are laughing all the way to the bank because they know what a simple concept it is. They know that anyone could do it. And they know that most people won’t because they are stuck thinking like employees. The sad thing for most people is that they will never break that habit. You don’t have to be one of them.

All you have to do to become one of the big fish is invest. It’s that simple. Investing in real estate is a good bet because it’s a stable investment. It’s so stable, in fact, that the bank will actually lend you money to purchase it. No kidding.

That’s the long and short of what you will learn if you read every book available to you on how to start thinking rich and stop thinking secure. They will tell you how easy it is. They will tell you to change your thinking. And they will tell you to let the experts deal with the details.

About the Author:

Alex Anderson Connects Investors With Florida Investment Properties and Minnesota Real Estate Investment Property in Appreciating Markets.

Real Estate Investing For Your Future

Everyone wants to be rich, right? Well, actually, everyone says they want to be rich. But few people want to actually take responsibility for taking control of their future. And that’s what you have to do in order to get rich: Take control.

Easier said than done, right? Not really. There is so much literature on the bookshelves about how to do it, anyone can learn how. And that is the key. You have to learn. You have to educate yourself. If you think that there is simply too much material out there and you wouldn’t know where to start, then you can stop worrying, because you’re already making yourself financially smarter. Simply by visiting this site and reading these articles, you are giving yourself an important education that will give you the tools to take control of your financial future. You are one step closer to being rich.

Not only are you one step closer to being rich, but I am going to tell you what you would learn if you were to read every single book in the financial section of the book store. It’s not about complex accounting principles or Wall Street magic. You can hire professionals to take care of those kinds of details for you. What you will gain from truly learning how to get rich is this: You have to change your thinking habits.

That’s it. The fact of the matter is, you only have to get out of the habit of thinking like an employee and start thinking like an investor.

I’ll give you a moment to digest that one. It’s such a simple concept, it can take you by surprise. But it’s true. Just think about the kinds of conversations you and your fellow employees tend to have when you’re talking about your jobs: ?If only the boss would let me do this.? Or how about, ?I can’t do that?I’d lose my 401K!? The employee mindset is a fearful one, dependent on the system to take care of them. Oh sure, they put in the hours so they can have a roof over their head. And that’s exactly what they get?a roof over their head. Maybe a two-week vacation once a year if they’re lucky.

If you want more than that?to be rich, for example?you have to start thinking like the people who control the money. Think like the people who work smart, not hard. With a little thought, you can figure out how to make your money work for you.

Now, who are the people who work like that, who actually control the flow of money in our economy? You might be tempted to say ?corporations,? and you would be right to an extent. But corporations are not people: They are financial entities. Think about the people behind the entities and you are on the right track.

That’s right?the businesspeople. But they are only near the top of the food chain. If you go to the very top, what you find is…investors.

Investors are at the top of the food chain because they know how to make their money work for them, instead of slaving for their money. And they are laughing all the way to the bank because they know what a simple concept it is. They know that anyone could do it. And they know that most people won’t because they are stuck thinking like employees. The sad thing for most people is that they will never break that habit. You don’t have to be one of them.

All you have to do to become one of the big fish is invest. It’s that simple. Investing in real estate is a good bet because it’s a stable investment. It’s so stable, in fact, that the bank will actually lend you money to purchase it. No kidding.

That’s the long and short of what you will learn if you read every book available to you on how to start thinking rich and stop thinking secure. They will tell you how easy it is. They will tell you to change your thinking. And they will tell you to let the experts deal with the details.

About the Author:

Alex Anderson Connects Investors With Florida Investment Properties and Minnesota Real Estate Investment Property in Appreciating Markets.

Don’t Leap Before You Look - Successful Real Estate Investing Through Financial Analysis

You’ve been working up the nerve to get started in real estate investing for some time. You’ve had all the conversations with your rich uncle and your obscenely successful friends. You’ve read the how-to books. And now you’ve finally found the right property. It looks right, and the deal ?smells? right to you. The location seems like a sure bet.

But before you jump right in, take a step back and crunch the numbers. Forget about the back-of-the-napkin analyses your heroes may tell you about. If you’re spending this much of your hard-earned money, you owe it to yourself to do some thorough due diligence. There’s a good reason for it:

• The financial analysis process forces you to take a good look at the entire picture, not just the parts which appeal to you. You are forced to think things through, which in and of itself reduces the risk that you?ll overlook something critical.

Analysis can be an objective exercise, very different from the emotion-laden, and subjective, process of negotiating and getting caught up in deal-frenzy. Especially when it’s your first time out, you don’t want to rush into one of those projects which turns out to be one where you would later say (with regret) ‘it seemed like a good idea at the time.?

There are a few other very solid reasons to perform thorough financial analysis on your deal:

• Techniques such as discount cash flow analysis will project the ultimate potential gain or loss of your investment. This will help you to get from ‘it seems like a great deal’ to ‘it has the potential to net me $200,000 over 5 years.’
• Preparing detailed financial projections is the hallmark of the professional. Doing your homework in this way will improve your attractiveness to bankers, potentially aiding you in attracting financing for your deal.
• Financial analysis can’t see the future- you should not expect to be able to accurately predict the end results. However, through financial analysis, you can generate best- and worst-case scenarios in order to create a range of projected results. This will help you to approximate the maximum and minimum amounts you stand to gain or lose, as well as what you believe to be the most-likely gain or loss.

Investing is all about risk mitigation. Through this process, you can avoid deals which exceed your risk threshold, as well as deals which do not offer an adequate upside to balance against the potential downside. Never pursue an investment where you aren?t comfortable with the risks. That’s what we call ‘gambling.’ Nor should you pursue investments where the best-case scenario doesn?t meet your minimum return.
Don?t leap before you look. Run the numbers and be prepared.

Real Estate Investing For Your Future

Everyone wants to be rich, right? Well, actually, everyone says they want to be rich. But few people want to actually take responsibility for taking control of their future. And that’s what you have to do in order to get rich: Take control.

Easier said than done, right? Not really. There is so much literature on the bookshelves about how to do it, anyone can learn how. And that is the key. You have to learn. You have to educate yourself. If you think that there is simply too much material out there and you wouldn’t know where to start, then you can stop worrying, because you’re already making yourself financially smarter. Simply by visiting this site and reading these articles, you are giving yourself an important education that will give you the tools to take control of your financial future. You are one step closer to being rich.

Not only are you one step closer to being rich, but I am going to tell you what you would learn if you were to read every single book in the financial section of the book store. It’s not about complex accounting principles or Wall Street magic. You can hire professionals to take care of those kinds of details for you. What you will gain from truly learning how to get rich is this: You have to change your thinking habits.

That’s it. The fact of the matter is, you only have to get out of the habit of thinking like an employee and start thinking like an investor.

I’ll give you a moment to digest that one. It’s such a simple concept, it can take you by surprise. But it’s true. Just think about the kinds of conversations you and your fellow employees tend to have when you’re talking about your jobs: ?If only the boss would let me do this.? Or how about, ?I can’t do that?I’d lose my 401K!? The employee mindset is a fearful one, dependent on the system to take care of them. Oh sure, they put in the hours so they can have a roof over their head. And that’s exactly what they get?a roof over their head. Maybe a two-week vacation once a year if they’re lucky.

If you want more than that?to be rich, for example?you have to start thinking like the people who control the money. Think like the people who work smart, not hard. With a little thought, you can figure out how to make your money work for you.

Now, who are the people who work like that, who actually control the flow of money in our economy? You might be tempted to say ?corporations,? and you would be right to an extent. But corporations are not people: They are financial entities. Think about the people behind the entities and you are on the right track.

That’s right?the businesspeople. But they are only near the top of the food chain. If you go to the very top, what you find is…investors.

Investors are at the top of the food chain because they know how to make their money work for them, instead of slaving for their money. And they are laughing all the way to the bank because they know what a simple concept it is. They know that anyone could do it. And they know that most people won’t because they are stuck thinking like employees. The sad thing for most people is that they will never break that habit. You don’t have to be one of them.

All you have to do to become one of the big fish is invest. It’s that simple. Investing in real estate is a good bet because it’s a stable investment. It’s so stable, in fact, that the bank will actually lend you money to purchase it. No kidding.

That’s the long and short of what you will learn if you read every book available to you on how to start thinking rich and stop thinking secure. They will tell you how easy it is. They will tell you to change your thinking. And they will tell you to let the experts deal with the details.

About the Author:

Alex Anderson Connects Investors With Florida Investment Properties and Minnesota Real Estate Investment Property in Appreciating Markets.

Real Estate Investing For Your Future

Everyone wants to be rich, right? Well, actually, everyone says they want to be rich. But few people want to actually take responsibility for taking control of their future. And that’s what you have to do in order to get rich: Take control.

Easier said than done, right? Not really. There is so much literature on the bookshelves about how to do it, anyone can learn how. And that is the key. You have to learn. You have to educate yourself. If you think that there is simply too much material out there and you wouldn’t know where to start, then you can stop worrying, because you’re already making yourself financially smarter. Simply by visiting this site and reading these articles, you are giving yourself an important education that will give you the tools to take control of your financial future. You are one step closer to being rich.

Not only are you one step closer to being rich, but I am going to tell you what you would learn if you were to read every single book in the financial section of the book store. It’s not about complex accounting principles or Wall Street magic. You can hire professionals to take care of those kinds of details for you. What you will gain from truly learning how to get rich is this: You have to change your thinking habits.

That’s it. The fact of the matter is, you only have to get out of the habit of thinking like an employee and start thinking like an investor.

I’ll give you a moment to digest that one. It’s such a simple concept, it can take you by surprise. But it’s true. Just think about the kinds of conversations you and your fellow employees tend to have when you’re talking about your jobs: ?If only the boss would let me do this.? Or how about, ?I can’t do that?I’d lose my 401K!? The employee mindset is a fearful one, dependent on the system to take care of them. Oh sure, they put in the hours so they can have a roof over their head. And that’s exactly what they get?a roof over their head. Maybe a two-week vacation once a year if they’re lucky.

If you want more than that?to be rich, for example?you have to start thinking like the people who control the money. Think like the people who work smart, not hard. With a little thought, you can figure out how to make your money work for you.

Now, who are the people who work like that, who actually control the flow of money in our economy? You might be tempted to say ?corporations,? and you would be right to an extent. But corporations are not people: They are financial entities. Think about the people behind the entities and you are on the right track.

That’s right?the businesspeople. But they are only near the top of the food chain. If you go to the very top, what you find is…investors.

Investors are at the top of the food chain because they know how to make their money work for them, instead of slaving for their money. And they are laughing all the way to the bank because they know what a simple concept it is. They know that anyone could do it. And they know that most people won’t because they are stuck thinking like employees. The sad thing for most people is that they will never break that habit. You don’t have to be one of them.

All you have to do to become one of the big fish is invest. It’s that simple. Investing in real estate is a good bet because it’s a stable investment. It’s so stable, in fact, that the bank will actually lend you money to purchase it. No kidding.

That’s the long and short of what you will learn if you read every book available to you on how to start thinking rich and stop thinking secure. They will tell you how easy it is. They will tell you to change your thinking. And they will tell you to let the experts deal with the details.

About the Author:

Alex Anderson Connects Investors With Florida Investment Properties and Minnesota Real Estate Investment Property in Appreciating Markets.

Real Estate Investing For Your Future

Everyone wants to be rich, right? Well, actually, everyone says they want to be rich. But few people want to actually take responsibility for taking control of their future. And that’s what you have to do in order to get rich: Take control.

Easier said than done, right? Not really. There is so much literature on the bookshelves about how to do it, anyone can learn how. And that is the key. You have to learn. You have to educate yourself. If you think that there is simply too much material out there and you wouldn’t know where to start, then you can stop worrying, because you’re already making yourself financially smarter. Simply by visiting this site and reading these articles, you are giving yourself an important education that will give you the tools to take control of your financial future. You are one step closer to being rich.

Not only are you one step closer to being rich, but I am going to tell you what you would learn if you were to read every single book in the financial section of the book store. It’s not about complex accounting principles or Wall Street magic. You can hire professionals to take care of those kinds of details for you. What you will gain from truly learning how to get rich is this: You have to change your thinking habits.

That’s it. The fact of the matter is, you only have to get out of the habit of thinking like an employee and start thinking like an investor.

I’ll give you a moment to digest that one. It’s such a simple concept, it can take you by surprise. But it’s true. Just think about the kinds of conversations you and your fellow employees tend to have when you’re talking about your jobs: ?If only the boss would let me do this.? Or how about, ?I can’t do that?I’d lose my 401K!? The employee mindset is a fearful one, dependent on the system to take care of them. Oh sure, they put in the hours so they can have a roof over their head. And that’s exactly what they get?a roof over their head. Maybe a two-week vacation once a year if they’re lucky.

If you want more than that?to be rich, for example?you have to start thinking like the people who control the money. Think like the people who work smart, not hard. With a little thought, you can figure out how to make your money work for you.

Now, who are the people who work like that, who actually control the flow of money in our economy? You might be tempted to say ?corporations,? and you would be right to an extent. But corporations are not people: They are financial entities. Think about the people behind the entities and you are on the right track.

That’s right?the businesspeople. But they are only near the top of the food chain. If you go to the very top, what you find is…investors.

Investors are at the top of the food chain because they know how to make their money work for them, instead of slaving for their money. And they are laughing all the way to the bank because they know what a simple concept it is. They know that anyone could do it. And they know that most people won’t because they are stuck thinking like employees. The sad thing for most people is that they will never break that habit. You don’t have to be one of them.

All you have to do to become one of the big fish is invest. It’s that simple. Investing in real estate is a good bet because it’s a stable investment. It’s so stable, in fact, that the bank will actually lend you money to purchase it. No kidding.

That’s the long and short of what you will learn if you read every book available to you on how to start thinking rich and stop thinking secure. They will tell you how easy it is. They will tell you to change your thinking. And they will tell you to let the experts deal with the details.

About the Author:

Alex Anderson Connects Investors With Florida Investment Properties and Minnesota Real Estate Investment Property in Appreciating Markets.

Is Real Estate Investing Really One of the Best Income Opportunities

Investing in real estate can be one of the very best income opportunities, but it depends on your personality. I don’t believe everyone is suited for real estate investing, any more than I believe that everyone is suited to be a professional golfer, opera singer, or CPA.

In order for real estate investing to be the best income opportunity for YOU, first make sure you’re the type of person who can succeed as an investor. Fortunately, there are almost as many ways to invest in real estate as there are personality types, so the chances are excellent you will find one you can succeed at.

By answering a few simple questions, I can help you narrow your focus and decide what kind of investing you’re likely to do well with. Be honest with yourself, and answer each question with a simple yes or no. Ready? Let’s get started.

1. Do you consider yourself a highly detailed and organized person?

2. Do you find it difficult or uncomfortable meeting new people and starting conversations with them?

3. Do you enjoy managing large projects and orchestrating the efforts of a group of people?

If you answered yes to the three questions above, your skills make you well suited to rehabbing properties. You may not succeed as a negotiator, so finding and flipping properties is something you probably should avoid, but if you can partner with a skilled deal-finder, handling the rehab projects is something you most likely would enjoy and be good at.

Here’s another set of questions.

1. Do you find it easy to get to know new people and start conversations with them?
2. Do people tend to trust you easily?
3. Do you like how it feels when you negotiate a great deal?
4. Do you dislike detailed work, or are you slightly disorganized?
5. Are you tenacious and persistent?

If you answered yes to at least 4 of the above questions, bird-dogging, wholesaling, and flipping may be right for you. Talking to sellers will be one of your strong suits, once you learn how. Building a list of buyers will probably come easier for you than it might for someone else. However, you should avoid taking on rehabs, or becoming a landlord. Those require more detail and organization than you possess.

Here’s the final group of questions.

1. Are you patient and not easily frustrated?
2. Can you be firm and direct when necessary?
3. Are you consistent and organized in you own personal finances and recordkeeping?

If these answers were yes, perhaps landlording and holding properties for rental would be a good fit for you. In fact, these traits are found in almost all successful, long-term landlords. On the other hand, not possessing these qualities is most likely why so many landlords get fed up with their tenants and wind up selling their properties at a big loss.

There is much more we could say on this topic, but by now you’re getting the idea. It’s vitally important to take a look at yourself truthfully. Ask yourself some hard questions, and use the answers to help determine if real estate investing will be one of the very best income opportunities for you, and which type of investing you are best prepared to excel at.

Now, go make more offers!

Real Estate Investing - Is There One Magic Rule?

If you’ve spent much time around people who invest in Real Estate you know they all have their favorite rules. In Investment Club meetings, online chat rooms, even at the corner coffee shop, you catch snippets of conversations including phrases like,

?Location, location, location,?

?Buy low, sell high,?

?Invest in what you know,?

and many others.

While these are all important, in my experience (and that of many other seasoned investors) there is one rule that, if followed consistently, will save you from almost all of the potential pitfalls investors commonly encounter. What is this pearl of wisdom?

Simply this: YOU MAKE YOUR MONEY WHEN YOU BUY.

?What?s that,? you say? ?Everybody knows you make your money when you sell.?

?Not so fast,? I reply.

Think very carefully through what I?m about to say. Etch it into your mind and heart. Follow it faithfully and you will come close to guaranteeing your investing success. Forget it at your peril.

YOU MAKE YOUR MONEY WHEN YOU BUY. Very simply, this means that your profit is literally created at the time you purchase a property, through the price you choose to pay and the terms you negotiate in your purchase offer. There is no other time in the life cycle of an investment when you will exercise such tremendous control over your potential profit.

There is no other time when you can come so close to guaranteeing your success, and also no time when you can virtually guarantee your failure.

Buy right, for the right price and terms, and you will be able to weather virtually any unforeseen or unknown defect in the property. Sure, some of your profit may be eaten up correcting the problems, but there will still be something left for you- something to allow you to move on to your next project.

Buy wrong, spending too much on the property, and even if you do everything else right you will be hard-pressed to make money.

This Rule Almost Makes The Others Obsolete

Even if you?ve broken most or all of the other so-called ?rules? of Real Estate investing, if you follow this one magic rule, you can emerge victorious, a little wiser but unscathed by crippling losses. Let me illustrate.

Recently I purchased a single family home, and in so doing I broke many of my own rules. I bought a house nearly an hour from my home, I bought a house for the wrong reasons (I really, really liked it), and I bought a high end house in a low end neighborhood (a classic no-no). I also bought it without having a clearly defined exit strategy (another classic blunder). I just knew I could do something with this house.

Additionally the house had one of the most investor-unfriendly features I have ever had the misery to run across- an indoor swimming pool. When I wasn?t busy finding and repairing leaks in the liner, I was struggling to refill the pool using the property?s seriously overtaxed well, which I had to keep waiting for to recover. I still have nightmares about it.

This house took me three times longer to sell than I first imagined, and holding costs were eating me alive.

But? I owned this house right because I had bought it for the right price. I had foreseen that this house, with all it?s beauty and features, could also be a very difficult house to rehab, hold, and sell. Based on that, I structured my offer with plenty of room, which is a good thing, because much of that ?room? was eaten up before I was finally able to sell.

Much, but not all.

Why was I able to withstand all of those expensive problems and still walk away with a tidy profit, and some hard-won wisdom? Because I recognized and applied the first and most important rule of Real Estate investing- YOU MAKE YOUR MONEY WHEN YOU BUY.

I believe that if you will etch this principle forever in your mind, and think of it always when making your offers, you will safeguard yourself from almost all potential investing disasters (acts of God excluded).

Two Things You Must Know

To put this principle into practice, you absolutely must acquire knowledge in two key areas- market values and repair costs. While each of these is worth an article on it?s own, I will cover them briefly here.

First, market values. You must thoroughly understand the market values in the neighborhood where the property is located, so that you can project an accurate After Repair Market Value (ARMV). In other words, how much will this property sell for after all needed repairs and upgrades have been completed. While it is beyond the scope of this article to cover market value in-depth, I will simply note that the one best way to determine the ARMV of a residential property is to compare similar properties in the neighborhood which have sold recently (called comparables or ?comps?).

If you don?t know the values in the neighborhood, STOP! Don?t invest there until you have come to understand the values by looking at lots and lots of properties, and talking with Realtors and others who know the neighborhood. Then you can proceed from a position of strength, certain that you know what you are doing.

Second, repair costs.

Once you know the ARMV, you need to be able to work backwards to arrive at an offer that makes sense. To do this, you must know what any needed repairs and upgrades will cost you. You don?t need to know to the penny, but you must come reasonably close, and you can only learn to do this with experience. If you don?t have this experience, and you?re not an expert, hire one.

You will need to befriend a contractor you trust, or partner with one on a few deals. Either way, let someone who knows this stuff bring you up to speed. Get a contractor on your team.

It shouldn?t take you more than a few deals before you can walk into a home in a neighborhood you?re familiar with and, after spending no more than 10 minutes or so, know what it will cost to repair and what it will sell for after you repair it. Knowing you can do that equates to freedom and power.

How To Structure Your Offers

Armed with that kind of specialized knowledge, you will be able to confidently structure offers that others can?t, because they just don?t know what you know. Once I have this knowledge (ARMV and repair costs) I use a very simple formula to structure almost all of my offers on residential rehabs. Feel free to use this formula for your offers.

ARMV ? Repair Costs ? 30% = My Offer

Here?s an illustration. I recently looked at a single family, split level foreclosure in a middle class neighborhood I am very familiar with. Knowing the values for similar homes in that neighborhood were around $90,000, I next walked through the house and estimated repair costs to be about $12000. Here?s how I structured my offer:

ARMV ($90,000) ? Repair Costs ($12,000) = $78,000

$78,000 ? 30% ($23,400) = My Offer ($54,600)

Did it matter to me that the asking price of the house was $84,000? Not in the least. My offer (and therefore my profit) has absolutely nothing to do with how much the sellers are asking, or how much someone else might offer. My offers are based on my specialized knowledge of market values and repair costs.

If someone else wants to offer more, that?s fine by me. Their circumstances might be much different than mine. Perhaps they are going to live in the house while they repair it. Maybe they are ignorant of market values or repair costs, or both. It doesn?t matter. I won?t let their mistakes become mine, and you shouldn?t either. There are plenty of houses out there.

You?ll get plenty of offers accepted, because you know what most others don?t. You know that- YOU MAKE YOUR MONEY WHEN YOU BUY.

Now, go make more offers!

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