BY DENNIS HENSON— Have you ever wondered why some people seem to be successful at whatever they do while others fail? It all comes down to knowing what really works and what does not.
Every industry has “best practices” that companies use to ensure success. Real Estate investing is an industry that has its own best practices or “secrets”. This knowledge can make the critical difference between success and failure in your real estate investment transactions. These top ten are the ones every investor will want to memorize.
Tip 1 – Tap into the Knowledge of the Professionals
People who quickly gain and master a profession are those who know how to tap into the knowledge of successful professionals. These people may have done the same or may have learned by trial and error. Either way, you can avoid wasting time and money caused by making your own mistakes and instead, find yourself a mentor who can help you avoids those pitfalls. If you do not have a mentor, you can get one of the many CDs or DVDs on the market created by successful real estate investors.
Tip 2 – Learn How to Make an Offer That Will Generate a Deal
Every good real estate investor knows what offers will generate the best results. You need to learn the true market value, and then present an offer that is consistent with that value. This will then result in a quick transaction.
Tips 3 through 7
These five tips all related to skills that you’ll need to develop. By mastering these five skills, you’ll be more than halfway to becoming a successful real estate investor:
Tip 3 – Track Down Great Deals
These deals will result in a successful purchase and earn you a great profit.
Tip 4 – Get the Money
Procure the money that you’ll need to make those good buys and get your investing career going in the right direction.
Tip 5 – Make it Sell
Making property easy to sell by knowing what “fix-ups” will generate the best return on investment
Tip 6 – Know How to Create an Effective Marketing Campaign
Learn how to let others know what you’re looking for and what opportunities you have to offer.
Tip 7 – Know How to Manage Your Property in a Profitable Way
Tip 8 – Make Offers That Work for You and the Seller
You’ll never want to low-ball an offer so much that the other party is insulted and walks away from the deal. Make a serious offer that has room for negotiation. At the same time, don’t make an offer so low that you give away all your profits! Crafting quality offers is actually an art. There are some great software programs, such as TurboBidder 2, which can help you decide what price range will generate the best results.
Tip 9 – Learn What the Property is Really Worth
Knowing the true market value of property is the key to being a successful real estate investor. Real estate that languishes on the market for months, even years, is obviously posted at an unrealistic value. A professional appraiser report is a good tool for the investor, so all parties involved accept their evaluation of a property’s worth. However, if you have lots of property to appraise, this service can be expensive. Turning to realtors who have been in the business for years can be your most economical resource. Realtors can provide you with comps, which is short for comparables. This is a list of what nearby properties have sold for, which serves as a benchmark for market values.
Tip 10 – You Have to Really, Really Want to Be Successful
Being a real estate investor takes hard work, determination and a drive to become successful. You’ll suffer setbacks along the way and may become discouraged, but if you truly believe in your dream of making money as a real estate investor you’ll get through all those hurtles. To quote Winston Churchill, “Never! Never! Never! Never! Never Give Up!”