The 2 Sides To Real Estate Investing…

There are two sides to every story and real estate investing is no different. It’s all about risk. Some say it’s risky; others say it isn’t. Just like everything else, it’s all in how you look at it.

Let’s look at the side who says it’s risky business.

Some people look at investment as a crap shoot. If they get into real estate, or any other kind of investing, they go about it as though they were trying to conjure up some sort of luck. They think that just by being in the game they’re doing everything that needs to be done.

Some of these people are lucky. But you have to remember, sometimes people who bet on the horses or the dogs are lucky. This type of investor looks at real estate investing in the same way?pick something at random and hope for the best.

If real estate investing were really done like that, there would be no such thing as a real estate mogul. You would see people who made a lot of money quickly from time to time, and those people would fade into the background like last week’s pop stars.

For people who approach real estate investment like that, it is very risky. In fact, they are almost guaranteed to lose a great deal of money.

There is another side to real estate investing. Robert Kiyosaki, author of the Rich Dad book series, and Ken McElroy, one of his Rich Dad advisers, both say that there is another way. In order to make real estate pay off for you, you have to approach it in a methodical manner.

Sure, these guys have lost money in the past, and probably will in the future. Everyone makes mistakes. But the money they have made on real estate deals far outshines the little bit they have lost in the course of learning the business. That is a far cry from stumbling down the path of financial ruin because you assume it’s a crap shoot.

They suggest that you learn as much as you reasonably can before you buy your first property. That means learning to read financial statements, learning the basics of real estate law, learning the markets and learning how to pick out properties. (Actually, McElroy outlines a wonderful method for picking out properties in ?The ABCs of Real Estate Investing.?)

What you can’t learn on your own, you get a team to help you with.

You have to approach this in a step-by-step manner and not give in to the temptation to leap before you look. You know the saying: ?Fools rush in where angels fear to tread.? Don’t rush in to the exciting world of real estate investing, but don’t be afraid of it either. Simply learn the terrain as you would if you were going to go walk a foreign countryside for the first time. Learn what is poisonous and avoid it. With that kind of knowledge, you can do anything safely, including invest.

About the Author:

Alex Anderson is a Minneapolis Realtor Specializing In Minnesota Investment Property and Florida Investment Property.

Real Estate Investing - 7 Steps To Success

For the uninitiated, investing in real estate can seem like a big, mysterious activity that you pretty much have to be born with a special gene to do. They don’t know that you can break it up into several smaller steps, and that it is only a matter of learning how to get through each one.

The following are seven steps you can follow in order to go from being an Average Joe or Josephine to being Joe Cool, real estate mogul. They will at least get you closer to the latter.

1. Realize that it is not outside of your grasp. As one step leads into another, you first have to begin thinking like a real estate investor. And real estate investors think about finding good deals. However, you may not know a good deal if it jumps up and bites you on the nose.

2. That’s why you have to learn some basic accounting. You don’t have to spend 10 years studying under ancient Chinese accounting master, but you should learn how to read financial statements. You should learn about cash flow. You should learn the difference between an asset and a liability, not just take your banker’s word for it.

3. Once you know how to read the language if investment, you will be in a position to learn how to recognize a good deal when you see one. This is a bit trickier. Although you should do plenty of reading on the subject, the best way to learn is through doing. Get out there and look for deals.

4. Learn about the markets you want to play in. If you are thinking about buying a specific kind of property, learn about the markets in the area you are interested in. The market should actually determine where you make your purchase. Look for a community that is progressive, for one thing. A place with a good quality of life. A place with a good economy.

5. Set goals. Determine what you want to accomplish and when you want to accomplish it. Make sure it is within your reach and then take the steps to actually make it happen.

6. Develop your team. You will need to hire professionals to help you with things like accounting and legal issues. You will want people who know more than you do about how buildings are put together to appraise property for you. According to Ken McElroy, author of ?The ABCs of Investing,? the worst thing you could do is skimp on this step and try to be a ?real estate do-it-yourselfer.? That may appear to save you money in the beginning but you will pay dearly in the end.

7. Make your first purchase. When the numbers add up, McElroy says, then it is a good deal. Don’t leap without looking, but if you’ve looked and the numbers add up, then it’s time to jump.

Of course, this is a simplified version of the process, but it is a good way to get an overview. Each one of these steps could be further mapped out. The trick is to do your research and take it at your own pace. Don’t rush. Learn the process. The first purchase will be the most difficult. After that, the real learning starts.

Real Estate Investing - 7 Steps To Success

For the uninitiated, investing in real estate can seem like a big, mysterious activity that you pretty much have to be born with a special gene to do. They don’t know that you can break it up into several smaller steps, and that it is only a matter of learning how to get through each one.

The following are seven steps you can follow in order to go from being an Average Joe or Josephine to being Joe Cool, real estate mogul. They will at least get you closer to the latter.

1. Realize that it is not outside of your grasp. As one step leads into another, you first have to begin thinking like a real estate investor. And real estate investors think about finding good deals. However, you may not know a good deal if it jumps up and bites you on the nose.

2. That’s why you have to learn some basic accounting. You don’t have to spend 10 years studying under ancient Chinese accounting master, but you should learn how to read financial statements. You should learn about cash flow. You should learn the difference between an asset and a liability, not just take your banker’s word for it.

3. Once you know how to read the language if investment, you will be in a position to learn how to recognize a good deal when you see one. This is a bit trickier. Although you should do plenty of reading on the subject, the best way to learn is through doing. Get out there and look for deals.

4. Learn about the markets you want to play in. If you are thinking about buying a specific kind of property, learn about the markets in the area you are interested in. The market should actually determine where you make your purchase. Look for a community that is progressive, for one thing. A place with a good quality of life. A place with a good economy.

5. Set goals. Determine what you want to accomplish and when you want to accomplish it. Make sure it is within your reach and then take the steps to actually make it happen.

6. Develop your team. You will need to hire professionals to help you with things like accounting and legal issues. You will want people who know more than you do about how buildings are put together to appraise property for you. According to Ken McElroy, author of ?The ABCs of Investing,? the worst thing you could do is skimp on this step and try to be a ?real estate do-it-yourselfer.? That may appear to save you money in the beginning but you will pay dearly in the end.

7. Make your first purchase. When the numbers add up, McElroy says, then it is a good deal. Don’t leap without looking, but if you’ve looked and the numbers add up, then it’s time to jump.

Of course, this is a simplified version of the process, but it is a good way to get an overview. Each one of these steps could be further mapped out. The trick is to do your research and take it at your own pace. Don’t rush. Learn the process. The first purchase will be the most difficult. After that, the real learning starts.

Real Estate Investing - It Takes A Team

Real Estate Investing - It Takes A Team Submitted By: Chris Parks

That’s right, Real Estate Investing is a team sport, and if you want to be successful, you will have to build a strong team. No matter how badly you want to, you can not do everything yourself. You just will not have the time or expertise. As new Real Estate investor you need to begin thinking about who you want on your team. Get referrals from other Real Estate Investors and Real Estate Mentors. It is best to select people who have some type of Real Estate investing experience. Also, it is extremely important to not have teammates who tell you this can not be done. You need only supportive team members. Surround yourself with link-minded people; negativity will get you no where. You will build your Real Estate Investing team over time, not overnight. Sometimes it will be by trial and error. Yes, in some instances you will have to pay your teammates, but if you have chosen wisely you will get your investment back many times over. To build a successful team you need to build a relationship with many different individuals. Choose your teammates wisely and they will help you reach the Real Estate Investing dreams that you so desire. Your Team Should Include… Your Spouse/Significant Other Support at home is critical. Your Local REIA In order to associate with like-minded Real Estate Investors and local Entrepreneurs, it is essential that you find a REIA to attend in order to network with fellow Investors. Other Real Estate Investors Other Investors are a major player on your team. You will seek their advice or input often and they will be able to provide referrals for many of your other teammates. Real Estate Attorney Select an attorney that is familiar with creative Real Estate Investing. Accountant You want a certified professional keeping your books, preparing your financial statements, and advising you on tax issues. Make sure they also understand creative Real Estate Investing. Title Insurance Company Title searches and closing are often done by Title Companies. Note that in some areas it is common for attorneys to do these functions. Insurance Agent Insurance will be needed for all properties that you buy and hold for whatever reason. Not to mention liability insurance. You will also probably want an all-encompassing umbrella policy to protect you and your business. Again select an agent that is familiar with what you do. Real Estate Agents Yes, you want Investor friendly Real Estate Agents on your team. It will probably take some time to find a few, but they are worth their weight in gold. Make sure the relationship will be mutually beneficial. Mortgage Broker If you need to help a tenant owner get financing, a mortgage broker can come in handy. They can start early in the process and try to get your tenant owners a mortgage to cash you out. Have several different companies at hand. Get referrals and stay on top of them throughout the loan process. Inspector Eventually you will become pretty good at inspecting structures, and systems but until then use a professional. A wrong evaluation can cost you thousands. Licensed Contractor This is the best person to estimate repair costs. While an Inspector can spot things that need to be repaired, your contractor can give you accurate labor and material estimates. Appraiser Again, you will eventually get very good at this, but have an appraiser on your team as you will need help in the beginning. Notary Public (Mobile) Some documents have to be notarized and you do not want to wait until the next day when a Motivated Seller is ready to sign your contract. Having a mobile notary on your team allows someone to meet you right at a property. A Few Others to Take Care of: ? General Handyperson Work ? Demo and/or Hauling Junk ? Plumbing ? Electric ? Termites/Pest Control ? Roofer ? Painter ? Carpet/Flooring I think you get the point. And if not, do not worry because once you have a Real Estate deal in hand, you will quickly figure out if there are others that you need. Article Tags: estate, real, team Tags: Accountant, Creative Real Estate, Dreams, Fellow Investors, Financial Statements, Instances, Local Entrepreneurs, Nbsp, Real Estate Investing, Real Estate Investor, Real Estate Investors, Real Estate Mentors, Referrals, Reia, Successful Team, Supportive Team, Team Members, Team Sport, Teammates, Trial And Error Real Estate Investing - 7 Steps To Success May 17, 2009 by Kenny Santos   Filed under Real Estate Investing Leave a Comment For the uninitiated, investing in real estate can seem like a big, mysterious activity that you pretty much have to be born with a special gene to do. They don’t know that you can break it up into several smaller steps, and that it is only a matter of learning how to get through each one. The following are seven steps you can follow in order to go from being an Average Joe or Josephine to being Joe Cool, real estate mogul. They will at least get you closer to the latter. 1. Realize that it is not outside of your grasp. As one step leads into another, you first have to begin thinking like a real estate investor. And real estate investors think about finding good deals. However, you may not know a good deal if it jumps up and bites you on the nose. 2. That’s why you have to learn some basic accounting. You don’t have to spend 10 years studying under ancient Chinese accounting master, but you should learn how to read financial statements. You should learn about cash flow. You should learn the difference between an asset and a liability, not just take your banker’s word for it. 3. Once you know how to read the language if investment, you will be in a position to learn how to recognize a good deal when you see one. This is a bit trickier. Although you should do plenty of reading on the subject, the best way to learn is through doing. Get out there and look for deals. 4. Learn about the markets you want to play in. If you are thinking about buying a specific kind of property, learn about the markets in the area you are interested in. The market should actually determine where you make your purchase. Look for a community that is progressive, for one thing. A place with a good quality of life. A place with a good economy. 5. Set goals. Determine what you want to accomplish and when you want to accomplish it. Make sure it is within your reach and then take the steps to actually make it happen. 6. Develop your team. You will need to hire professionals to help you with things like accounting and legal issues. You will want people who know more than you do about how buildings are put together to appraise property for you. According to Ken McElroy, author of ?The ABCs of Investing,? the worst thing you could do is skimp on this step and try to be a ?real estate do-it-yourselfer.? That may appear to save you money in the beginning but you will pay dearly in the end. 7. Make your first purchase. When the numbers add up, McElroy says, then it is a good deal. Don’t leap without looking, but if you’ve looked and the numbers add up, then it’s time to jump. Of course, this is a simplified version of the process, but it is a good way to get an overview. Each one of these steps could be further mapped out. The trick is to do your research and take it at your own pace. Don’t rush. Learn the process. The first purchase will be the most difficult. After that, the real learning starts. About The Author: Alex Anderson Has a Website for Minneapolis Real Estate Agents and Assists Buyers To Purchase Minneapolis Investment Property As Well As National Investors Looking for Real Estate Investment Opportunities. Tags: 10 Years, Average Joe, Basic Accounting, Cash Flow, Economy, Financial Statements, Good Deals, Grasp, Investing In Real Estate, Joe Cool, Josephine, Mysterious Activity, Quality Of Life, Real Estate Investor, Real Estate Investors, Real Estate Mogul, Set Goals, Seven Steps, Smaller Steps eNews & Updates Sign up to receive breaking news as well as receive other site updates! 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