3 Things to Ignite Your Real Estate Investment Business
We are living in a time where half of all investors are new to investing in real estate. If this is you, congratulations! You are on your way to a great journey of building income in real estate.
Start quickly, get educated and go for it
Do not waste too much time getting started since today we have more people renting than ever before and the investors can cash in on these market trends.
Many have found that investing in tangible assets is far better than those non-tangible assets that offer you as the investor very little controls, such as the stock market.
Even when markets crash, you still have the tangible asset and as the population continues to grow at a rapid pace these tangible assets (your property) will be in high demand. It is this continued demand that allows you to always be able to benefit with real estate investing.
To that note, here are 3 things to consider when building your real estate investing business
Think big from the start
Most everyone has heard the old saying “Go big or go home”. This is indeed relevant if you wish to build wealth in real estate. Think big from the start. You may wish to start small, develop your system and get comfortable, this only makes sense and it will make you money.
Once you get the hang of things though, let it take off. Establish how much money you want coming in each month to live on. Build your sites to generating enough positive cash flow to live on. Have you given thought to what that number is? It could be 10K, 15k 20k, or 50k per month. It is all possible if you think big early on, take action and develop the strategies to do so. Many decide to buy a couple of properties to supplement their income which is fine if that is all you want, however if you want to replace your income and live comfortably without having to work, Think Big!
Real estate in not about timing, it is about location
Here is a misconception that most people have. They try to apply the same principles of investing in the stock market into real estate investing. In stocks they always tell you, in order to get rich you have to time the market. Even for real estate this has some relevancy as you always want to buy when the market is low and sell when the market is high.
The Good News for real estate investing is IT IS ALWAYS A GOOD TIME TO BUY “SOMEWHERE” Somewhere, of course, relates to LOCATION!
As stated above, you do not want to wait for the market you live in to become a hot market. This may never happen.
Ten years ago we considered a move to California. We drove 1600 miles up and down the coast of California looking to buy a small home or condo that we could live in for a few years and then use as an investment property.
There was a very fast reality check; the cost to buy property there far outpaces the income, making it impossible to ever create positive cash flow with a new purchase. Californians know that if you want to invest in real estate you need to look into better locations to find those investor advantage markets.
Buy Low and Sell High
O.K. do not laugh at this one because this one is a no brainer (right). Yes, everyone knows you want to "Buy Low and Sell High", but the reality is most people do the opposite. Why? Because most people watch what everyone else is doing. They wait to hear of the success stories and seek verification that indeed it is a great time to buy. The challenge is, by the time you discover this the market it is moving forward and prices have already risen. Perhaps still an O.K. time to buy, but the best time to buy is when the prices are at their lowest.
On the flip side, when it is time to sell the same thing happens. As people discover the market has peaked, the pendulum does a rapid change in direction. Sort of like a pendulum on a clock, it gradually rises until it hits its peak and does a sudden correction and starts declining.
You want to buy assets when at their lowest and then hold them as they rise, sell and reposition to the next investor advantage market.
People know what they should do and want to buy low and sell high, but it requires you get and stay informed and do your research. When you can buy early you can ride the wave of economic prosperity.
As you start quickly get to Think Big plus Buy Low and Sell High and you will be doing what the seasoned investors who create wealth in real estate do every day.