Key to Success in Real Estate Investing

We have discussed several aspects of Real Estate Investing and have given some basic information on how to get started and what to expect. Today I want to give you some information as to why some people are very successful Real Estate Investors. It is fact that anyone can be a successful Real Estate Investor in any kind of market especially the Real Estate Market we are currently experiencing, however there are some keys to this success.

1. Have a detailed Investment Property Acquisition Plan: This is critical if you plan on achieving long term success. You must know the market and as the market changes your plan needs to be tweaked. But in order for that to happen you must first have a plan.Your plan should include your criteria, what will you buy and what is your exit strategy, once I acquire this property what is my plan of action. If you have a detailed plan you will limit your exposure to failure. Without a well thought out plan your exposure to failure is extremely high.

2. A proven system for evaluation of Investment Property: This includes but is not limited to a detailed cost of repair worksheet. When you find “The Deal” it may initially look great on paper however completing a cost of repair worksheet will give you the exact figures you need to be able to make an informed decision on the property. As mentioned in a previous post you can control the property while making these determinations and having the properly worded contingencies you can be sure if the property does not meet your financial criteria you can walk away without expense.

3. Time is Money: We have all heard this saying but in Real Estate Investing it is a crucial key to success. New investors often make the mistake of, ” I can do the work required and save a bunch of money”. Although you may be versed in repairs etc. the length of time it will take to get the property in a marketable condition be it Re-Sale or Rental can be the difference in a great return on investment and a break even return, I would think as a Real Estate Investor you are not looking to break even. An example I love to use is painting the home. A 1200 square foot basic 3 bedroom 2 bath home most new Investors feel they can at least get the painting done themselves for minimal cost. This is true, pain, supplies etc. for a home this size should cost about $200.00. Even the most energetic new Investor will take 7 to 10 days to complete the job keeping you tied to the house until this is complete. This takes time away from marketing the home for potential Renters or Buyers keeping the property non-income producing even longer. Hiring a professional paint crew, and this can be done inexpensively, they should complete the job within 24 hours. You have no prep no clean up and no touch up, just a professional paint job getting your house ready in record time. So spend your time, finding the deals, negotiating the necessary contract points and finding the Buyers and Renters for you Investment Properties.

I hope these keys help and as always, if you have any questions just let us know.