What do successful investors know that you do not know about real estate wealth fast?
Do they know something about creating real estate wealth quickly as you do not? Are they smarter than you? Do you have contacts that you do not? Do they have any kind of real estate wealth crystal ball?
The answer to all these questions is NO
Look, Ive spent years in real estate learning the system. I have read books, gone through expensive property education, attended a seminar after a seminar on how to quickly build real estate and travel around the country and even internationally.
Almost all of this was a big waste of time and money.
I would like to share tips based on my own personal, proven, practical experience from actually working, investing and building wealth on the realestate market for almost 25 years.
First and foremost, if the guys and gals you thought were smarter than you can do, you can.
The nice thing is that you do not have to waste time and money like I did to read a lot of books, go to real estate classes more about later and pour money into real estate seminars taught by people who really have no idea what they make.
Just do it
Just get there and do it. Get your feet wet. Test the water.
Stop thinking about it, stop making excuses and start doing it.
You do not need big money
Even in todays market, lenders are willing to make offers.
An alternative is a loan with hard money where you can finance your property in the short term. Hard money lenders usually borrow about 50 percent to 60 percent of a propertys value and interest rates may be in double digits.
But keep in mind, this is a short term, fix and flip financing strategy.
Once you have finished the deal on your property, you will want to rehab it quickly, get it rented and either hang on the case to build your property wealth with the ongoing long term cash flow, or make a fix and flip and sell it to another investor, or Maybe even make a lease to the tenant.
If you decide to hang the property, make sure you have on site financing to buy out the hard money lending so you do not get stuck with a high long term interest rate.
With this exit approach, make sure you have been prequalified and pre approved to take out financing before committing to the property.
One of the keys to this approach is to get your exit strategy calculated before you actually own the property.
Believe me, you will sleep much easier at night and know that you have another withdrawal investor busy when your rehab and lease are done or you have already received your refinancing
If your pre defined retirement plan is paid when your work is complete, consider using a tax retrenched exchange, aka 1031 exchange, to postpone any real estate tax and get the full profit on your first business available to invest in your next business.
It can not be a bad idea to get your next business already raised.
Its always a good idea to talk with your tax advisor about tax retrenched exchange. Again, do your homework first and do it before you actually close your first business.
Feel your exit strategy and always have a Plan B are important steps to quickly build the property on real estate.
Do not pay for your real estate investment
I know you think this is common sense. And that is.
But you would be amazed at how many real estate investors Ive looked at are caught in the sense of wealth building and that they pay more than they had planned or underestimated how much rehab needed to get the case rented quickly.
There are three good sources for determining a real estate value
Your own research
In that order. Nothing turns your boots on the ground and your intuition.
It is always good to gather information from all three sources, then use your best assessment of what price is a good deal for the property.
With these in mind, you will quickly be on the way to building your own property fortune quickly