Real estate investing can be amazing taking many people literally from rags to riches. It is not necessary for an investor to be rich or to have plentiful money of his own, but it is extremely important for him to be market savvy, being able to judge and value a property accurately. There are numerous ways to invest and get rich in real estate investing. Creative investing techniques such as bird-dogging, flipping, lease options, tax liens and dealing in notes have helped people get rich fast.

Tips For Becoming Rich In Real Estate

For becoming rich in real estate, the most important aspect is to ensure you have adequate resources or access to resources by establishing relationship with hard moneylenders or private moneylenders. This will help you get the required finances to close deals with short time frames. Just as important is to have a consistent supply of motivated sellers and equally interested buyers, rehabbers etc. This can be done by maintaining a book of contacts so that you can find an appropriate buyer in case you want to try a flip. Frequent advertisements in newspapers and word-of-mouth publicity will be effective so do maintain a good reputation as a trust worthy party to deal with.

An investor has to be cautious from the first step such as selecting an area and the kind of property. Absolute caution and extensive research is advisable while selecting an area, be sure to study all factors that will influence the economy and if the kind of property you are investing in has a satisfactory demand. Selecting to invest in a condo in a not so popular area or a seasonal resort are may not be as rewarding as buying a condo in a popular tourist destination. Be certain that you will get a profit of at least 20% of its actual price. Never make the mistake of paying more than the actual value of the property. Learn as much as you can about local rates and be able to judge its value accurately. Once you have decided on closing a deal carry out extensive due diligence and frame the contract in terms that benefit you try and include the closing expenses to be paid by the seller. Be sure to ensure that there are no tenants in the property you are dealing in if there are tenants ask the seller to hand over an empty house or that there will be no deal.

In case you are interested in liens and investing in them try and research as much as you can about the properties to be on auction and get aerial shots or at least a picture to ascertain the condition of the property. If you are just interested in the returns focus on the returns or the rate of interest rather than on the property. Tax lien investments are acknowledged passive incomes with high interest rates such as 16 to 25% or even at times 50%! It is better than any other kind of investing as you get guaranteed returns without the hassle of owning property. If you bid be sure you have the resources to close the sale of the lien or you will end up being penalized by the county! Maintain the certificates of sale of the tax liens carefully to return them when they are repaid.

If you are involved in rehabbing be sure you have prior experience in repairing homes and are able to ascertain the exact repair costs. Keep within the budget and be sure to have a buyer ready when the rehab is finished. Hire appropriate workmen and self supervise their work to ensure quality of the work done.

If you are interested in dealing with notes, study the ways that deals can be made involving notes. Buying discounted notes and selling them for full price or using them as collateral for their true value has made many fortunes. A really successful investor is one who has an exit strategy ready. Getting rich selling real estate requires a good exit strategy and being able to get rid of the property when a boom wave is still high. Many people have lost out or indeed have lost everything as they were not careful enough to judge the demand and asked for astounding rates only to find that the market had cooled, they had paid more than the normal price for the property and hence foreclosure was inevitable. This can be avoided if an investor knows when to exit and how to dispose of properties at a profit. If you are careful, have a good team of attorney, realtor etc., are prudent real estate riches will not be hard to make.

 

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