Avoid Rookie Real Estate Investing Mistakes

When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of course, ecstatic. Finally, he had done it. He had taken that first important step in truly building his wealth that the man he called his ?rich dad? so often touted?investing. He knew it was very important to become an investor and make his money work for him.

The trouble was, the property he purchased was a losing deal for him. He didn’t see this at first, thanks to a smooth-talking real estate agent. But when he took the contract to his rich dad, he learned what a mistake he had made. According to that deal, he would be losing money each month. He thought it would be all right because he had been told that lost money was an investment in the future appreciation of the property.

He also was not aware that there would soon be major construction near the site, which would hamper access for quite some time. Who would want to live there?

What saved Kiyosaki on that deal was having a mentor like his rich dad, who made him go back and renegotiate the deal. The more experienced investor told him that you should never settle for losing money early in the deal, in the hopes that you will make up for it later. That is a bad deal.

Rich dad made him go renegotiate the contract and instead of losing money each month, he would be gaining $80 per month. His rich dad asked him how many of those losing deals he could afford at that rate. You can do the math. He couldn’t even afford the one. But at a gain of $80 per month, Kiyosaki’s reply to that question was, as many as he could get his hands on.

But many newbie investors fail to put themselves in the hands of a mentor, which his a mistake. It is good to have a trusted friend?not an advisor who stands to make a buck off of you, but someone who truly wishes to educate you?to keep them from making dire mistakes.

Another mistake that rookies often make is the very one that Kiyosaki made?they allow themselves to be talked into deals in which they lose money, after getting bogged down in mathematical ?if’s? that look really good on paper. ?If the property appreciates at this rate, then I can make up all the money I lost in the previous year and…and…? That is, IF the unit stays rented. IF the tenants pay you on time. IF you don’t discover a significant flaw with the property. IF the tenants don’t cause a significant flaw with the property…

The list goes on. It’s bad enough if you’re making money on the deal and something like that happens. If you start out losing money, you’re almost guaranteeing your own failure. Yet a smooth-talking professional can make it sound as though they are doing you a favor by taking your money.

And finally, newbies often fail to consider the environment within which they are making their purchase, just as Kiyosaki did. With real estate, unlike with other investments, the local financial ecosystem can seriously affect your investment, and so you have to stay on top of what is happening in the neighborhood and the rest of the city.

The thing is to educate yourself and keep your head at the negotiating table. If you do those two things then your deals will likely be just that?deals. For you.

About the Author:

Investment Property Specialist - Alex Anderson Helps Beginning and Intermediate Real Estate Investors To Build Wealth And Prepare For Retirement By Investing In Real Estate. Enroll In Her Free/Educational “Investment Property Program” At: http://www.GreatInvestmentProperty.com

Avoid Rookie Real Estate Investing Mistakes

When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of course, ecstatic. Finally, he had done it. He had taken that first important step in truly building his wealth that the man he called his ?rich dad? so often touted?investing. He knew it was very important to become an investor and make his money work for him.

The trouble was, the property he purchased was a losing deal for him. He didn’t see this at first, thanks to a smooth-talking real estate agent. But when he took the contract to his rich dad, he learned what a mistake he had made. According to that deal, he would be losing money each month. He thought it would be all right because he had been told that lost money was an investment in the future appreciation of the property.

He also was not aware that there would soon be major construction near the site, which would hamper access for quite some time. Who would want to live there?

What saved Kiyosaki on that deal was having a mentor like his rich dad, who made him go back and renegotiate the deal. The more experienced investor told him that you should never settle for losing money early in the deal, in the hopes that you will make up for it later. That is a bad deal.

Rich dad made him go renegotiate the contract and instead of losing money each month, he would be gaining $80 per month. His rich dad asked him how many of those losing deals he could afford at that rate. You can do the math. He couldn’t even afford the one. But at a gain of $80 per month, Kiyosaki’s reply to that question was, as many as he could get his hands on.

But many newbie investors fail to put themselves in the hands of a mentor, which his a mistake. It is good to have a trusted friend?not an advisor who stands to make a buck off of you, but someone who truly wishes to educate you?to keep them from making dire mistakes.

Another mistake that rookies often make is the very one that Kiyosaki made?they allow themselves to be talked into deals in which they lose money, after getting bogged down in mathematical ?if’s? that look really good on paper. ?If the property appreciates at this rate, then I can make up all the money I lost in the previous year and…and…? That is, IF the unit stays rented. IF the tenants pay you on time. IF you don’t discover a significant flaw with the property. IF the tenants don’t cause a significant flaw with the property…

The list goes on. It’s bad enough if you’re making money on the deal and something like that happens. If you start out losing money, you’re almost guaranteeing your own failure. Yet a smooth-talking professional can make it sound as though they are doing you a favor by taking your money.

And finally, newbies often fail to consider the environment within which they are making their purchase, just as Kiyosaki did. With real estate, unlike with other investments, the local financial ecosystem can seriously affect your investment, and so you have to stay on top of what is happening in the neighborhood and the rest of the city.

The thing is to educate yourself and keep your head at the negotiating table. If you do those two things then your deals will likely be just that?deals. For you.

About the Author:

Investment Property Specialist - Alex Anderson Helps Beginning and Intermediate Real Estate Investors To Build Wealth And Prepare For Retirement By Investing In Real Estate. Enroll In Her Free/Educational “Investment Property Program” At: http://www.GreatInvestmentProperty.com

Avoid Rookie Real Estate Investing Mistakes

When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of course, ecstatic. Finally, he had done it. He had taken that first important step in truly building his wealth that the man he called his ?rich dad? so often touted?investing. He knew it was very important to become an investor and make his money work for him.

The trouble was, the property he purchased was a losing deal for him. He didn’t see this at first, thanks to a smooth-talking real estate agent. But when he took the contract to his rich dad, he learned what a mistake he had made. According to that deal, he would be losing money each month. He thought it would be all right because he had been told that lost money was an investment in the future appreciation of the property.

He also was not aware that there would soon be major construction near the site, which would hamper access for quite some time. Who would want to live there?

What saved Kiyosaki on that deal was having a mentor like his rich dad, who made him go back and renegotiate the deal. The more experienced investor told him that you should never settle for losing money early in the deal, in the hopes that you will make up for it later. That is a bad deal.

Rich dad made him go renegotiate the contract and instead of losing money each month, he would be gaining $80 per month. His rich dad asked him how many of those losing deals he could afford at that rate. You can do the math. He couldn’t even afford the one. But at a gain of $80 per month, Kiyosaki’s reply to that question was, as many as he could get his hands on.

But many newbie investors fail to put themselves in the hands of a mentor, which his a mistake. It is good to have a trusted friend?not an advisor who stands to make a buck off of you, but someone who truly wishes to educate you?to keep them from making dire mistakes.

Another mistake that rookies often make is the very one that Kiyosaki made?they allow themselves to be talked into deals in which they lose money, after getting bogged down in mathematical ?if’s? that look really good on paper. ?If the property appreciates at this rate, then I can make up all the money I lost in the previous year and…and…? That is, IF the unit stays rented. IF the tenants pay you on time. IF you don’t discover a significant flaw with the property. IF the tenants don’t cause a significant flaw with the property…

The list goes on. It’s bad enough if you’re making money on the deal and something like that happens. If you start out losing money, you’re almost guaranteeing your own failure. Yet a smooth-talking professional can make it sound as though they are doing you a favor by taking your money.

And finally, newbies often fail to consider the environment within which they are making their purchase, just as Kiyosaki did. With real estate, unlike with other investments, the local financial ecosystem can seriously affect your investment, and so you have to stay on top of what is happening in the neighborhood and the rest of the city.

The thing is to educate yourself and keep your head at the negotiating table. If you do those two things then your deals will likely be just that?deals. For you.

About the Author:

Investment Property Specialist - Alex Anderson Helps Beginning and Intermediate Real Estate Investors To Build Wealth And Prepare For Retirement By Investing In Real Estate. Enroll In Her Free/Educational “Investment Property Program” At: http://www.GreatInvestmentProperty.com

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.

Avoid Rookie Real Estate Investing Mistakes

When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of course, ecstatic. Finally, he had done it. He had taken that first important step in truly building his wealth that the man he called his ?rich dad? so often touted?investing. He knew it was very important to become an investor and make his money work for him.

The trouble was, the property he purchased was a losing deal for him. He didn’t see this at first, thanks to a smooth-talking real estate agent. But when he took the contract to his rich dad, he learned what a mistake he had made. According to that deal, he would be losing money each month. He thought it would be all right because he had been told that lost money was an investment in the future appreciation of the property.

He also was not aware that there would soon be major construction near the site, which would hamper access for quite some time. Who would want to live there?

What saved Kiyosaki on that deal was having a mentor like his rich dad, who made him go back and renegotiate the deal. The more experienced investor told him that you should never settle for losing money early in the deal, in the hopes that you will make up for it later. That is a bad deal.

Rich dad made him go renegotiate the contract and instead of losing money each month, he would be gaining $80 per month. His rich dad asked him how many of those losing deals he could afford at that rate. You can do the math. He couldn’t even afford the one. But at a gain of $80 per month, Kiyosaki’s reply to that question was, as many as he could get his hands on.

But many newbie investors fail to put themselves in the hands of a mentor, which his a mistake. It is good to have a trusted friend?not an advisor who stands to make a buck off of you, but someone who truly wishes to educate you?to keep them from making dire mistakes.

Another mistake that rookies often make is the very one that Kiyosaki made?they allow themselves to be talked into deals in which they lose money, after getting bogged down in mathematical ?if’s? that look really good on paper. ?If the property appreciates at this rate, then I can make up all the money I lost in the previous year and…and…? That is, IF the unit stays rented. IF the tenants pay you on time. IF you don’t discover a significant flaw with the property. IF the tenants don’t cause a significant flaw with the property…

The list goes on. It’s bad enough if you’re making money on the deal and something like that happens. If you start out losing money, you’re almost guaranteeing your own failure. Yet a smooth-talking professional can make it sound as though they are doing you a favor by taking your money.

And finally, newbies often fail to consider the environment within which they are making their purchase, just as Kiyosaki did. With real estate, unlike with other investments, the local financial ecosystem can seriously affect your investment, and so you have to stay on top of what is happening in the neighborhood and the rest of the city.

The thing is to educate yourself and keep your head at the negotiating table. If you do those two things then your deals will likely be just that?deals. For you.

About the Author:

Investment Property Specialist - Alex Anderson Helps Beginning and Intermediate Real Estate Investors To Build Wealth And Prepare For Retirement By Investing In Real Estate. Enroll In Her Free/Educational “Investment Property Program” At: http://www.GreatInvestmentProperty.com

Avoid Rookie Real Estate Investing Mistakes

When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of course, ecstatic. Finally, he had done it. He had taken that first important step in truly building his wealth that the man he called his ?rich dad? so often touted?investing. He knew it was very important to become an investor and make his money work for him.

The trouble was, the property he purchased was a losing deal for him. He didn’t see this at first, thanks to a smooth-talking real estate agent. But when he took the contract to his rich dad, he learned what a mistake he had made. According to that deal, he would be losing money each month. He thought it would be all right because he had been told that lost money was an investment in the future appreciation of the property.

He also was not aware that there would soon be major construction near the site, which would hamper access for quite some time. Who would want to live there?

What saved Kiyosaki on that deal was having a mentor like his rich dad, who made him go back and renegotiate the deal. The more experienced investor told him that you should never settle for losing money early in the deal, in the hopes that you will make up for it later. That is a bad deal.

Rich dad made him go renegotiate the contract and instead of losing money each month, he would be gaining $80 per month. His rich dad asked him how many of those losing deals he could afford at that rate. You can do the math. He couldn’t even afford the one. But at a gain of $80 per month, Kiyosaki’s reply to that question was, as many as he could get his hands on.

But many newbie investors fail to put themselves in the hands of a mentor, which his a mistake. It is good to have a trusted friend?not an advisor who stands to make a buck off of you, but someone who truly wishes to educate you?to keep them from making dire mistakes.

Another mistake that rookies often make is the very one that Kiyosaki made?they allow themselves to be talked into deals in which they lose money, after getting bogged down in mathematical ?if’s? that look really good on paper. ?If the property appreciates at this rate, then I can make up all the money I lost in the previous year and…and…? That is, IF the unit stays rented. IF the tenants pay you on time. IF you don’t discover a significant flaw with the property. IF the tenants don’t cause a significant flaw with the property…

The list goes on. It’s bad enough if you’re making money on the deal and something like that happens. If you start out losing money, you’re almost guaranteeing your own failure. Yet a smooth-talking professional can make it sound as though they are doing you a favor by taking your money.

And finally, newbies often fail to consider the environment within which they are making their purchase, just as Kiyosaki did. With real estate, unlike with other investments, the local financial ecosystem can seriously affect your investment, and so you have to stay on top of what is happening in the neighborhood and the rest of the city.

The thing is to educate yourself and keep your head at the negotiating table. If you do those two things then your deals will likely be just that?deals. For you.

About the Author:

Investment Property Specialist - Alex Anderson Helps Beginning and Intermediate Real Estate Investors To Build Wealth And Prepare For Retirement By Investing In Real Estate. Enroll In Her Free/Educational “Investment Property Program” At: http://www.GreatInvestmentProperty.com