The Basic Tenets Of Successful Real Estate Investors

The real estate business may look very lucrative, but a real estate investor undergoes extreme emotions ranging from highs to lows. A successful deal can raise his equity to unimaginable highs while a deal falling through can wipe out the real estate investor totally. A real estate investor has to be a quick-thinking glib talker with high energy levels to enthuse the customer to bring a deal to closure in the minimum time frame. An honest and clever real estate investor is much sought after for advice on real estate-related issues. 

Learning the ropes in the initial stages of the real estate business can be very tough and challenging. There are moments of frustration, loss of self-confidence and finances because of a busted deal or a deal gone awry. A real estate investor should treat the failures as stepping-stones to learning and successes for future deals and not lose heart. Gradually, he will be able to see the bigger picture and gain insight toward long-term success. A real estate investor should aim to reach his ultimate goal of creating a constant stream of cash flows to get by comfortably each month and build a significant net worth for long-term financial health. Any real estate investor has to undergo three stages of gradual growth to realize his full potential.

Stages Of Growth In Real Estate Investment

A real estate investor needs to grow through three distinct levels, while learning to identify his mistakes on the way to success.

The Initial Phase

The success of the first profitable deal boosts his confidence to a high level. He learns to make profits in a very simple way while dealing at the human level to finalize a real estate deal. The investor has the certainty that real estate will be his proven path to financial success. He feels enthused and eager to learn more about his new chosen profession. Crossing the initial hurdle of proving that real estate works, his mentor or coach should encourage him to meet up with at least three clients a week to overcome the fear of meeting sellers and overcome inertia. The real estate investor must learn from his experiences on a regular basis, regroup his resources, and get on with his business.

Mastering The Core Skills

This stage is all about mastering the five core skills of real estate investing and building a business to support a real estate portfolio. He has learned to create a passive stream of cash flow each month to fund a stable lifestyle. He uses his wealth to build his net worth, converting equity into assets and capital. Cash flow and net worth are two financial markers that guarantee a real estate investor financial success over time. The five core skills a real estate needs to master to reach financial success are:

• How to find motivated sellers consistently. A real estate investor must learn to identify the potential clients instinctively. Be organized and thorough with all the facts of the deal. Keep a constant check and monitor closely on property listings, foreclosure or bankrupt properties, open houses, or any other property to pursue your business diligently and honestly.
  
• How to be a master negotiator. This is a very important part of the deal. Negotiate in a win-win manner that is also in the best interest of your clients for the best prices. Prepare the property value study with full property data to arrive at the right price of the property while negotiating. Promote and protect the interests of both the buyers and sellers for good and happy negotiation deals.
  
• How to quickly analyze successful deals from no-deals. Do not waste time with an unmotivated client. Motivate a wavering client and structure the offer with the client’s best interest in mind. This will lead to quick and financially successful closure of the deal in the real estate investor’s favor.
  
• How to structure a variety of deals. A real estate investor should learn the myriad forms of real estate investing. Each property deal has its own unique requirement; a well-versed real estate investor manages to treat each deal as per its requirement. Be prepared to deal in short sale, cash sale, and lease option, selling on wrap mortgage, subject to deals, and foreclosure.
  

• How to write up deals. An experienced real estate investor is well versed with the legal contract part of the investing. Learn to make the legal agreements with the help of a property lawyer. Train in basic concepts of property dealing and the complexities of various property deals to gain expertise in them and be a successful real estate investor.
  
  

Maturity Stage

In this stage, the investor, after building a sound financial empire, withdraws from the day-to-day working of the business and lets it grow on its own steam. This is the stage of ultimate success in the life of a real estate investor.

A real estate investor can earn a reasonable living from deals in the real estate business. There is no shortcut to success, and the real estate investor has to go through various learning stages to achieve success.

© Copyright 2004 by Buyincomeproperties..com