The Worst Way to Invest In Real Estate

Posted by daviddon on August 31st, 2015

You're thinking of investing in real estate?
The markets are slipping; prices have declined in some markets 20% over the last year
with no bottom in sight - so how do you make money in this downward market?
This will be the first part of several articles on how you can still make money
investing in real estate, (I haven't finished the others articles- so not sure how many
parts there will be). The focus of this article is to show you people are
still investing and making money in every market. You will still make money in any
market- but you will need to follow some basic principles and some common sence.
Principles I abide by:
EMOTIONS:
You can not let emotions come into a deal. It is business, if you buy under
pressure you will sell under pressure- and lose many. (trust me, I've done it- and it
was an expensive lesson)
MARKET VALUE:
Buy at or near market value 'hoping' the market will continue to
increase, is not investing- it is speculating! Speculators take on risk to make the
big bucks for little work (think Miami condo pre-construction craze).
Here's a hint- If your hair dresser or taxi cab driver are 'investing' in condo's on
spec, do you really think it's a good time to get in? Probably missed the boat- be an
investor that does his/her research NOT a sheep following the masses.
INTERGRITY:
If you think you want to be in business for more than 1 deal- always deal
on the up and up. I'm not talking about grey area financing- I'm referring to the way
you handle each deal. You are buying under market to make money, nothing wrong with
that. Lying and/or cheating someone out of their home is wrong- and it will catch up
to you.
Develop a reputation for being a shyster, and you'll forever need to market yourself-
because no one will refer you. Nuff said
GAME PLAN:
Go into every deal with an exit strategy. You need to take all factors
into account. Most investors buy thinking everything will go smoothly- but in every
deal there is always an unexpected turn of events. Banking on the perfect
scenario will one day catch up to you- and you will lose money.
ACTION:
Actions are what count in real estate. "Numbers Game'- so you need to get out
there and make offers, (lots) and when you do get a deal it will be due to hard work
and persistence. If you think real estate is easy and requires no work- better stay
out.
MONEY:
In any business the less money of your own you risk the better off you will be.
Best thing about buying real estate- it can be done with no money! Wholesaling,
assumables, subject-to's and certain sandwich lease options are all methods that can be
employed to buy with no money down.
As a beginner I would recommend limiting risk- no money down and not holding the
property in your name- wholesaling.
That should give you an insight into what I've done that works in real estate, at a
macro level.
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