The best property investors are opportunists. They constantly have their feelers out for new moneymaking opportunities. They place themselves in the way of information. They “live the life” of the successful property investor, so to speak. Because of this behavior, they notice things.
Ken McElroy, author of The ABCs of Real Estate Investing, which is part of the Rich Dad, Poor Dad book series, says it is all about seeing patterns. If you look at enough pieces of real estate, study enough areas, talk to enough people, McElroy said, you'll start seeing these patterns. Then certain things will begin to occur. You may begin to seem lucky. And, McElroy says, this may be luck, however it is a sort of luck that comes with hard work and preparation.
Don't forget: “Fortune favors the prepared mind." Opportunity is all around us, but if we are blind to it, it will be as though it doesn't exist. The alert mind recognizes opportunity.
Ken McElroy stresses repeatedly that being a successful property investor is a process. It is not something that occurs instantaneously. It is something that you do each day. As you work through this process things will start happening for you.
A successful property investor focuses on doing a little at a time, on learning this or that thing, or making a certain deal. It's a “walk before you can crawl” process.
For instance, McElroy says, if you have found a good deal, you will be able to obtain the necessary funds as other people will inevitably want their own share of the eventual profits. This is not about negotiation skills necessarily, McElroy said. Clearly, skillful negotiation can net you an even better deal at times, however you should not fret over whether you can hold your own at the negotiation table. Focus on searching for good deals.
Although investors are constantly considering risk, constantly cognizant of it, good investors are not frightened off by it. They decide whether the risk seems reasonable. If the numbers work out correctly, says McElroy, then it is a good deal. If it is a good deal, the smart real estate investor goes ahead with it.
Easy.
Those who do not understand how to properly evaluate risk may think that everything is too risky. They make the assumption, for instance, that a bigger deal involves to great a risk for a novice to deal with. They assume that because they have the misconception that the investor is sinking a prodigious amount of his own cash into it when, in truth, a bigger deal stands to generate a larger sum for those involved. For this reason, it may not be as hard as you would assume to find backers for a deal like that. At the end of the day, you may put up less personal money than you would've on a smaller deal.
Real estate investment is similar to anything else you might want to learn. For one thing, you have to learn the ropes. And you learn by doing it. Go out and look at properties. Take trips to cities as though you were intending to buy. Log on to the Internet and read about areas. Check out what other people have to say regarding the real estate in an area. Introduce yourself to people. Before long, you'll know enough to start thinking about making a move. You do not have to have a wad of cash in hand prior to entering the game. All you have to do is go out in the world and enjoy the process. Everything else will come in time.
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Alex Anderson Is A Licensed Minneapolis Realtor Who Helps Minnesota Real Estate Investors To Buy And Sell Property. Download A Free Copy Of "The Investors' Rental Guide" At www.GreatInvestmentProperty.com
