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Investing is difficult: Learn how to be a professional
If it was easy, everyone would be investing.
Date: 11/2/2009 7:04:54 PM ( 15 y ) ... viewed 2239 times Understanding the challenges of real estate investing
by Barbi Trejo
If investing was that easy to do, everyone would be investing millions of dollars, but the truth is, "It is not that easy." To truly understand the challenges involved in real estate investing, you must start from the beginning. You must start as the investor starts and that is Investing Classes 101. You can either learn from a "Guru" or learn with your money, which do you choose?
When looking at all the challenges that the investor faces, we must list them in importance. To tell you the truth there are so many challenges, that we can't list them all, but here is are the major challenges:
1. Finding, locating and bidding on property. This also includes finding a good Broker to defend and fight for you. Remember this is war and you have to fight to win.
2. Financing the properties and diversifying the cash.
3. Partnerships and joint ventures
4. Employee problems, to include management and maintenance workers.
5. Loss of income due to rental vacancies and major repairs.
Too many investors try investing before knowing how:
Did you ever see an investor who was broke? No, of course not, because investors who are broke are not investors anymore. They are bankrupt and in another business by now. An investor who learned through trial and error spent thousands and thousands of dollars and probably lost most of them. To many it looks easy, just go buy a property and "Walah" you are rich. It just does not work that way.
As a former Broker who trained people to invest I can tell you that I looked at ten or twelve properties before I would recommend one. Sometimes the first property is worth investing in, but very rarely. The property needs investigated thoroughly. The agent needs to meet the seller and discreetly find out all the details on the property. She needs to find the financing, talk to the neighbors, do the net sheets and then find the perfect offer.
Too many investors want to buy right now and then they become what I call, "Sunday Investors." They are here today and gone tomorrow. Take step one and then go to step number two. Hiring a Broker to help you, cost you nothing, but your loyalty. Rule number two in investing, treat your Realtor right and she will treat you right.
Know the market:
No matter how many times I told my investors what the price should be on a property, they should themself know the market. Any investor who is serious about the business, should be investigating by newspapers, open house or flyers. The investor knows the market better than the Realtor. When it is time to price a property both the Realtor and investor will know exactly where the offer should be.
To read the rest of the article:
http://www.helium.com/items/1636762-understanding-the-challenges-of-real-esta...
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