Making money in Real Estate requires expertise. The Real Estate market is dynamic, what worked before might not work now and vice versa.
Knowing when and where to invest requires entrepreneurial sense and in dept knowledge of the local market. None of the Real Estate courses will teach you all of that.
Take this very simple entrepreneurial quiz to make sure you are well suited for real estate investing career.
1. Am I an optimist and a risk taker entrepreneur?
2. Do I have the self-starter willpower to get this thing going and the discipline to keep it on track?
3. Do I work hard?
4. Am I a good problem solver?
5. Am I well organized?
6. Do I have the mental and physical stamina to work long hours?
7. Am I willing to work weekends and evenings–the times when most home sellers will be available?
8. Do I have enough savings to finance this business myself (fixer
upper expenses, down payments etc.) and to pay all my bills for at
least six months?
9. Will my family be supportive of my entrepreneurial efforts?
10. Do I have the basic skills required to start and successfully run my real estate investing business, or do I have access to a mentor who can help me through those critical early stages?
If you answered yes to more than half of the questions, consider
yourself a good candidate for a real estate investing career. If you answered no to five or more questions, don’t despair. You may simply need to change your approach to work, your mind-set, and your way of managing tasks, challenges, and problems. There are always experienced mentors, colleagues, and real estate investing courses to turn to for education on the fine points of running your real estate investing business; you can even learn a lot for free from the internet.
Just as a builder won’t begin construction without a blueprint, eager real estate investors shouldn’t rush into new ventures without a plan.
Ask yourself these four questions:
1. What service will you be providing and what needs will it fill?
2. Who are the potential customers for your service, and why will they sell their property to you?
3. How will you reach your potential sellers?
4. Where will you get the financial resources to start your real estate investing business?
These four core components are critical to your business success.
WE ALL HAVE DIFFERING ABILITIES
For example some real estate investors suggest knocking on doors asking if a house is for sale, talk to owners etc. This technique may suit some investors, but others won’t like getting at somebody’s door without an appointment. Also knocking on doors won’t work well in all areas. I would do that in a homogeneous Midwest City if I can present myself well, express myself in good English and give people good vibes.
On the other hand, if I look strange, can’t express myself to
strangers, and make people feel creepy that wouldn’t be a good
approach. And I certainly wouldn’t do that in NYC at the risk of even being shot in some neighborhoods or worst.
REAL ESTATE MARKETS CHANGE
About a year ago the NY Times had an article named “The two Real
Markets”, published, and its central thesis was “there was one market
till the late 70’s in the USA”, where prices and appreciation were
uniform throughout the country. After that, the bi-coastal markets
soared in value while most of the Midwest continued its normal course,
resulting in a vast gulf in prices.
REAL ESTATE MARKETS DIFFER
So in an area where it take months to sell something close to
market, one can make offers to close in days at a greatly reduced
price, and someone going through a job loss, divorce, relocation has no choice. But what if you’re in a hot market where a house is sold over asking price in days? Can you buy it at 30% below market? The savvy investors make money in the hot markets too, but use different techniques. They may buy a property at 10% below market in a good location offering quick closing, rent it out for a year and then sell it at market value when the market appreciates 20% or more and make a good profit.
For the successful people learning is a never ending lifetime journey.