6 Steps to Real Estate Investing Success

No matter how long you have been investing, it’s critical that you understand these 6 Simple Steps to real estate investing.  Of course the most important step is to actually get started!

Step 1 – Create a Profitable Plan

Determine both your short and long term real estate goals then figure out what steps are needed to get started. For example, you’ll need to set up your business entity, determine your market and build a great team to help put the plan into ACTION.

Step 2 – Analyze the Deal

Learn to analyze properties properly but do not get into the trap of over-thinking a single deal. Find a good analysis tool or spreadsheet to back you into the numbers that will make the deal work. Once you have that in place, analyzing deals will be quite simple. First calculate what the property will be worth when it is done, then subtract how much is needed for repairs and resale. Once you discount those two items, include your desired profit and you will know what the offer is worth. Don’t get into analysis paralysis; make offers based on your calculations - the numbers need to work for YOU!  If it doesn't work - renegotiate or move on to the next offer.  Do not try to reduce your profit just to get a deal accepted and run the risk of losing money if something goes wrong.  Successful investors typically have a system that allows them to make many offers before they buy.

Step 3 – Be a Problem Solver

Getting great deals is often a result of solving a problem, whether the seller is dealing with a foreclosure, a new inheritance or a landlord who is fed up with tenants.  When you are able to solve problems that few people have the answer to, not only can you get a great deal, but you also create a win-win situation where you become the hero. 

Step 4 – Become a Numbers Ninja

Real estate is a finance and numbers game. You must learn understand the concepts of leverage, financing, interest rates and various types of lending programs. You must know how to negotiate your deals, including terms and financing to property profit when you buy and sell your properties.

Step 5 – Find Riches in Niches

Determine what your specialty will be. Believe it or not, the more focused you are the more successful you will be. You cannot be all things to everyone, nor can you be a master of all markets. Determine what you’re good at – for example, if you love negotiating, you might be good at coordinating short sales or bank notes. If you love fixing homes, you may be a good rehabber or property manager. Whatever you choose to do, stay true to your specialty... you'll be most successful maximizing on your best skillsets - and hiring or partnering where you are less skilled.

Step 6 - Be Persistent

Many people get wide-eyed about the millions you can make in real estate, however, generating wealth in real estate is not typically something that can be accomplished by taking a weekend course or purchasing an online DVD program.  Creating wealth with real estate is done over time and is mastered the quickest when you mentor with someone who has successfully done what you want to do. You’ve got to create a plan and stick to it to continue getting greater results. You must also invest time in educating yourself with solid techniques. It is important that you continue to learn new skills, strategies and tips that will keep you on top of your game through different cycles of the market... and surround yourself with successful peers.