Real Estate is one of the best ways to set yourself up for retirement. It’s basically a no brainer, because in addition to the substantial returns is also offers you one of the best ways to save big on taxes. There’s a reason many real estate moguls pay less taxes than you. So why not get started? Most people don’t know how to begin.
What it takes:
That depends on you. You should always start with setting your goals and take a good look at your current situation. There are many ways to make money in real estate, but the best way always depends on where you are at and where you want to go.
The next step is to learn the system. It’s not rocket science but you have to work at it.
The different ways of Real Estate Investment
Basically there are 4 basic ways people make money in Real Estate. Which one should you learn about? All of them! The trick is to not just learn them but practice practice and practice again, preferably by doing!
1. 10 day quick flip/ Wholesaling
2. Buy fix and sell (rehab)
3. Buy and hold
4. Becoming a lender
One word of caution: Be sure to have a seasoned professional supervise you and hold your hand through those first few deals! It’s true, there is a lot of money to be made in real estate, but there’s also a lot of money to be lost. Be careful and be safe!
Deal Analysis- Getting your numbers right
How to you know it’s a good deal? That’s one of the most fundamental questions of real estate investments and it’s important to get it right. The only way to do that is to practice. First you learn what to look for and then you look for it- repeatedly until it becomes automatic. The process is relatively simple but you need to know it and know it well!
Plan AB & C
Know your exit strategy. Things don’t always go as planned but you can plan for the unexpected. Even if your initial game plan didn’t pan out there is no reason for you not to still make profits.—If you prepared your strategy in advance!
This goes back to knowing your basics.
Pick your market
There are deals to be found everywhere but it’s essential to focus. Not every market lends itself for every strategy or is in line with your goals and current means. One shoe does not fit all. Your mentor should help you analyze and choose a good fit for you.
Finding your Power team
You don’t have to do it alone. In fact you really shouldn’t.
Once you decided on a market the next step is to put your team together so you can efficiently work on your deals.
Who should be in it?
Work with your mentor and make sure he or she shows you how to pick the right team and manage them moving forward. Choosing the right people is essential for your success and can cost you big money if you don’t get this right.
Show me the money
Even if you are fortunate enough to start out with some capital to invest, you will eventually need more. So what’s next? Funding!
There are many ways to fund your deals and this is most definitely an area you should be adept in so you can keep investing and make money!
Get a mentor
It’s like riding a bike. You should start with training wheels (aka a mentor who is a seasoned pro) to hold you up for those first few rides until you can safely go it on your own. Once you know the system you are off to the races, but until then make sure you have someone who has substantial experience.
Learn from other people’s mistakes
You will make mistakes, but there’s no reason to make them all yourself. Learn from others and do better! Wisdom doesn’t have to come by the hard way….
Much success to you!