The truth is, the six secrets to investing in real estate are not really a secret. In fact, they have been gathered by popular authors and speakers and sold to interested parties for decades. You don’t have to purchase these “secrets” or attend a paid lecture by anyone. Instead, all you have to do it understand the secret to success is utilizing some simple steps in your business practices that have proven to catapult others into a real estate success story. If you want to be a successful real estate investor, it will take time, effort, and market understanding, but you can do it – and build a fortune in real estate.
1. Plan
If you want to get somewhere, you need a plan of action. Whether it is building a small real estate portfolio or creating a commercial empire, you need to understand where you are going before you can know you have arrived. List your goals, plan of action, and end date. Aubrey Ferrao developed a plan in Florida that helped him realize the goal of building a real estate empire.
2. Education
Real estate covers a vast field of different types of constructions and lands. Before you invest any money, do your research about the different types of ventures available, the risks involved, and how other men and women because successful. Search the internet for podcasts, sheets, blogs, and forums. The more you know, the fewer missteps you will make along the way.
3. Financing
Most people find a home, look for financing, and then close the deal, but investing requires you to know how you will finance your properties before you begin looking. Whether you have an angel investor, received a large inheritance, or have a line of credit with a bank, you will need to understand how you will finance your options, how much it will cost you in interest or payments, and how much passive income you will have at the end of each month.
4. Alternatives
As you build your sense of direction in purchasing properties, you may want to begin with an alternative source of investments called Real Estate Investment Trusts. REITs allow you to put your money together with other individuals to purchase properties you would not be able to own by yourself. There are many REITs available, so make sure you understand your personal risks before you join the group.
5. Investments
Ideal investment properties are rare in today’s real estate market because of the number of individuals that are looking for great deals. Begin by finding a location in your city that buyers covet. As someone once said, location is everything. Next, find the type of property you want to invest in at a reasonable price. Finally, be careful you don’t limit yourself and back out of deal after deal – take a leap forward and invest.
6. Negotiation
If you want to follow in Aubrey Ferrao Fiddlers Creek footsteps and build a real estate empire, it is essential to know a real estate agent you can work with long-term and that is trustworthy because that is how you will find the best deals before other investors have a chance to snap them up. Once you find a deal, negotiate for a price your market will support, hire an inspector that can locate hidden problems, and do your own walk-through of the property with a contractor if the owners will allow it. You may be allowed to renegotiate on the property again if problems are identified, but in the end, you can close on the property and become a true investor!
Although it may seem complicated when you begin investing, once you have purchased your first property, you may find it only requires you to follow a few simple steps. You can do it.
