Real estate investing in many ways is no different than investing in the stock market. It's important for real estate investors much the same as stock market investors to clearly identify their goals and to do their research before purchasing real estate investment properties. If the a property investor's goal is to have properties that cash flow, then he needs to focus on this goal. Cash flowing properties are more plentiful in today's real estate market. It's also important for a property investor to keep his emotions in check whether buying or selling and always drive a hard bargain.
A savvy real estate property investor, like a stock market investor needs to be disciplined and remember the basics when investing in real estate today. For instance, a great piece of advice for a stock market investor is to have a sell price the day he buys a position. This is also a great strategy for real estate property investors and it helps to keep his emotions out of the transaction. Not long ago, real estate investors had a very hard time finding properties that were priced right and that cash flowed. Sometimes it was like finding a needle in a hay stack, then when they found the right properties, the competition was there to drive the price up.
Now, it is fortunate that there is a plethora of properties priced right with cash flow. If a property investor is looking in the right places for cash flowing properties, it's like shooting fish in a rain barrel. Today's real estate market is akin to the stock market drop right after 9/11. There were bargains galore in the stock market during that time period but many stock market investors were held back by their own emotions.
Like some stock market investors right after 9/11 there are also property investors that seem gun shy in today's market. They are concerned about finding “the bottom" of the market. They need to stop looking for the bottom of the market. They will never find it. In any buyer's market, this hesitancy can be seen as an additional confirmation that it's a true buyer's market. If a real estate investor does his homework carefully, they can set themselves up to making solid profits much like many stock market investors gained right after 9/11, by investing wisely.
A summary of sound real estate investing strategies.
1. You make your money when you buy, so BUY SMART.
2. Do your homework on the property you are thinking of buying.
3. Seek out under priced properties.
4. Stop looking for the bottom of the market. You'll never find it.
5. Have key advisors and contractors at the ready before buying.
6. Start low with your offer. You can always go up if necessary.
7. Define the purpose for your property purchase.
8. Do not be emotionally attached to the property when you are buying or selling.
9. It's a business transaction. You are in it to make a profit.
10. Don't get wrapped up in the seller's needs or problems.
11. Have an exit strategy BEFORE buying.
12. Stick to your exit strategy for selling.
13. Re-assess your position and exit strategy from time to time. (Not emotion based).
14. Buy on weakness.
15. Sell on strength.
In the stock market, wise investors seek out stocks that are sold at a price below what they should be selling for. This is called “under valued. " This is exactly the type of property a real estate investor needs to find. They need to go after bank R. E. O. 's, foreclosures, short sales and other distressed sales. They need to look for divorce sales, estate sales, business failure sales. In looking for these types of transactions, it will be much easier to find cash flowing opportunities. Of course, having a good contact list will prove to be invaluable. These contacts will help you with finding properties, arranging financing, contracting tradesmen, etc.
For information on the purchase real estate investment properties for sale or any of your mortgage needs, You may contact Bill Burress, Nationwide Mortgage Expert at Toll Free 1-800-239-1416. or fill out the 30 Second Inquiry Form
Bill Burress, Nationwide Mortgage Expert can approve loans in all 50 states and has over 27 years experience in the mortgage business.
Now approving real estate mortgage loans in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.
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