7 Secrets of Success for Real Estate Investors
There's a lot of money to be made in real estate, and since most don't like to see one percent returns on their bank CDs, many are starting to jump into the real estate investing game because of the nice returns. The problem with real estate investing is that if you make one wrong move, you could quickly be thousands of dollars in the hole. Like any industry, there are many that make a killing. While making a lot of money with real estate investing can happen to you, it's going to take a lot of hard work and you must play the game right. If you want to play the game right, here are some secrets that most seasoned real estate investors won't tell you:
1) Learn How to Find Deals
Don't just settle on finding a real estate deal online. By doing this, it's going to take centuries to strike it rich. Instead, what you're going to want to do is think outside of the box. For instance, what happens if you start sending out direct mail flyers to those homes that you're interested in? If you send out 100 flyers, you could potentially see a 11 percent response rate. If you wait for these homes to hit the public MLS, it's going to open you up to more competition.
2) Join a Club
Find a local real estate investment club in your local area and join one. Ask questions, see what others are doing and try to replicate their success. There are a lot of homes out there right now that can make you a pretty penny.
3) Make it a Job
If you currently have a 9-5 job, chances are that you may come home and just kick your feet up to relax for the day. This is what you won't want to do. Instead, grab some books, network with some people and start researching the market. The more that you learn about your local real estate market and how to invest, the quicker you'll learn how to make money on the market.
4) Real Estate Agents
Start getting people to help you find the homes that work for you. Since a real estate agent can often find you a great house here and there, they are going to have other clients to work for as well. Because of this, make sure that you let other people know that you're looking for potential real estate properties. These people can include your friends, neighbor or even the mail lady.
5) Gather a Strategy
When it comes to investing into real estate, there are a few strategies that you can use in order to make money. These strategies can include flipping them within a few weeks to a long-term deal that lasts twenty years. Remember that each location can cater to specific investors. What works in one city may not work in another. This is why it's always important to research your market to know which one will work the best.
6) Time is Money
Don't waste too much time looking for deals or even working on a project that just isn't cutting it for you. If you've found that you purchased a dud that is just eating your profits, it may be time to let it go. While these scenarios can pop up, it's best to learn from your mistakes.
7) You Won't Get Rich Quick
Many rookie investors often think that they can purchase 20 properties and they will strike gold. This isn't the case. Keep in mind that it's going to take time in order to make your first dollar. By having patience and building the right portfolio, money can quickly follow after that.
Al Cooper is a real estate gentleman from Tennessee. When suggesting insurance to new homebuyers, he always directs them to homeownersinsurance.org for the best deal!