Real Estate Investors Who Watch Economics and Fundamentals Cash in Big
Have you ever said the phrase or at least heard the expression, “Everything they touch turns to gold.” Indeed it appears that some people just have that ability to make money from everything they do. Interacting with hundreds of real estate investors each month, I see a definite distinction between the ones who cash in big and those who just make average investments.
How to know you will cash in big
No, there is no magic pill that allows you to cash in big or strike gold. Indeed truly believing you will cash in big helps a lot as attitude plays a big role in your success.
So how do you have an attitude of success, how do you know when you make an investment that you will cash in on? “Knowledge”, yes, good old fashioned knowledge gives you the confidence that you will cash in because you know your diligence tells you that you will.
There is more to an investment than crunching the numbers
The knowledgeable investors know there is much more to investing in great properties than crunching the numbers to see if the returns are great. In fact the knowledgeable investors understand there is no need to crunch numbers on any property until they know the property is located in an economically sound location with fundamentals of the area that suggest sustainability.
Whoa! Did you catch the word location in there? Indeed we all know location is paramount to investing but do you really know what best location means to the investor?
Market fundamentals and headlines
Reading headlines is a great way to learn about the fundamentals. An article that I read awhile back said "Construction of Toyota's Plano Headquarters Set to Begin"
Within this article it says it will bring with it 4,000 jobs. What does this mean to you?
To the commercial industry it suggests there is opportunity to add more gas stations, strip malls and restaurants nearby as these services will be needed. Each of these service positions are in and of themselves additional jobs being brought into the area.
It suggests that people will be transferred into the area from elsewhere and as people go where the jobs are the population will grow. It may suggest a need for larger capacity schools. It suggests a need for more police man and fireman.
When you let your logical mind open you will see that adding 4,000 new jobs to a location means exponential growth to the area. Indeed, to the knowledgeable investor it means a need for housing in the area. The location where this Toyota plant is being built suggests the path of progress for this city is growing in that direction.
Of course following this mindset you can identify the opposite. Such as when motor city left Detroit and moved south. That city is still trying to recover from the loss of jobs and population.
Related Resource: Get Cash Flow and Growth by watching TV or Reading The Paper
Cashing in on headlines
Needless to say you have much more diligence to do than just identifying these businesses that are moving in and out of an area. I trust this opens your mind to thinking the way those who appear to be able to turn everything they touch into Gold.
They know they will create success because they have done all their diligence on insuring they are investing in GREAT LOCATIONS WITH ECONOMICS AND FUNDAMENTALS THAT INSURE A SAFE AND SUSTAINABLE INVESTMENT.