Monday, May 4, 2009

Are you ready to invest in real estate?

Have you been thinking about becoming an investor in the Real Estate Game? Does it sound like the right thing for you? There are several things to consider before taking the big step into Real Estate investing. Take a moment and consider just a few.

Don't let fear stop you.
If its fear alone that is holding you back then you're probably missing out on a great opportunity - EVEN IN A DOWN MARKET. Fear is the number one success killer. No matter who you are, you can succumb to fear and lose a lifetime of opportunity.

Don't even think about investing without a business plan. Why do you want to invest? (Write it down) What types of investments do you want to make? (Write it down) What are you going to do with your investments? (Write it down) Moving forward in any business without a plan is a formula for disaster. You'll run the risk of being swept away by emotional impulses if you don't have a plan. Remember if you don’t have a plan you can’t stick to that plan. You can always make minor adjustments along the way but don't deviate from that plan without a great amount of painful consideration.

Use leverage instead of cash. ALWAYS use other people's money even if you think it's too expensive because it's never as expensive as using your own cash. I recently had a first time investor come to me wanting to pay cash for properties. I showed him how it would take only a few deals to completely delete his entire savings. Instead he could leverage what he has and amass a great number of income producing properties in a very short period of time.

One more point that I would like to make, to investors, you must be able to afford to make the payments on the property for a lengthy period of time even if the property is not leased.

Should you seriously considering throwing your hat into the investing ring? You might want to do some serious research. I also recommend that you sit down with a Real Estate Broker that specialize in investment properties and a Lender (banker) that specialize in lending to investors and determine what it is that you want to do and what it is you are able to do.

Investing is not for the weak at heart. But it can be extremely profitable. Donald Trump, Robert Kiyosaki even the McDonalds Corp. have proven that you can become unbelievably rich through real estate investing. But you must first educate your self and build a team of experts to assist you in reaching your goals.

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