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

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

Why Use Private Money for Real Estate Investing - Reason 3

I met a guy the other day – we’ll call him Stan – who had a tale of woe to tell. It seems Stan had tried to get approved for a loan on a Harley he wanted to buy, only to be told “NO!” by the loan officer, who happened to be young enough to be Stan’s kid. Talk about frustration… and it all could have been avoided with a little judicious use of private money for real estate investing.

You see, Stan is a real estate investor – has been for quite some time – and he has a pretty active credit file. Mortgages going on, mortgages coming off, every time Stan buys or sells a house (which is frequently) his credit gets whacked with a new loan or inquiry. So, now that Stan wants to buy something for himself, he has to kowtow to some obsequious little snot of a loan officer. Poor Stan.

If Stan had simply taken a little time and effort to set up a network of private lenders he wouldn’t be in this predicament. Stan’s credit would be squeaky clean, because private loans don’t show up in a credit report, and private lenders don’t generally pull credit reports.

Private money for real estate investing is like having a golden ticket. Private lenders make their lending decisions based on the relationship they have with you, and based on the quality of the deal, so they don’t need to hit you with a credit inquiry.

That way, when you want to go borrow money for some other purpose, like a boat, a motor home, a car, or, in Stan’s case, a Harley, your credit will be unencumbered by a bunch of mortgages, and available for you to use.

Isn’t that why you’re investing in real estate for in the first place? Extra money for some of the finer things life has to offer? Of course it is, and when the time comes to enjoy some of that hard-won wealth, do you want some snotty-faced kid telling you, “I’m sorry, Mr. Investor, but we can’t grant this loan request?”

I’ll bet I already know the answer to that question. Stan does, too.

Reason 4 to use private money for real estate investing? Keep your valuable credit available for other things.

Now, go make more offers!

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

Real Estate Investing Mentors - Maximum Mentoring

If you have looked for and found one or more real estate investing mentors, you may be wondering, ?What next? How can I get the most from this real estate mentoring relationship?? The answer is, quite simply, give the most!

It?s strange but true, the relationships we typically get the most out of in life are those we put the most effort into, and your relationship with your real estate investing mentors will be no different.

Be prepared to go out of your way to be helpful to your real estate investing mentors, and you will be amazed at what happens. Whenever I have mentored someone, it has been my experience that the more they put in, the more they got back. If they were especially helpful and generous with their time, they not only learned more quickly, but they also achieved their goals much faster.

Let me give you an example. Close acquaintances of mine, a couple, had been looking for real estate investing mentors for quite some time before they asked me. I gladly agreed, and we decided to work on a rehab project together. Using my expertise, I would buy a house that needed rehab. Using their expertise, they would rehab the house. We would then rent it out, holding it in an LLC.

That?s exactly what happened. They did everything I asked of them, and then some. Not only did they complete the rehab in a timely manner, they did a fantastic job. They learned by watching closely how I acquired the house for far below market value. They learned, because that?s why they were looking for real estate investing mentors in the first place.

They also watched and learned how to get the house rented, and how to properly manage the rental. They can now do all of this on their own, and I?m sure they will. They learned because they started out looking for real estate investing mentors with the right mindset- they had the will to work hard!

If you would like to know more ? such as exactly how to go about finding real estate investing mentors ? check out Real Estate Investing Mentors.

Now, go make more offers!