SIX STEPS TO FINANCIAL SUCCESS

Whether you are brand new to real estate investing or you have some investing experience, listed below are a few things that can help you succeed and be on your way to financial success.

• Step 1: Make yourself a Real Estate Investor Business Plan. You need a business plan to be successful!
  
  
• Step 2: Find a GREAT Realtor. Your relationship with your Realtor can make a huge difference in the success of your business!
  
  
• Step 3: Have your Realtor assist you in finding the best way to finance your purchase(s). Many investors pay cash but some soon realize that it may be smarter to purchase cash and then finance the property or take a loan out from the beginning. This keeps their personal assets available. When financing it is important to use the right lending institution as a difference of even a couple percentage points on a deal can add up to significant profits for you down the line.
  
  
• Step 4: If financing your new investment purchase get pre-approved for your financing before beginning your search. With 99.9% of transactions in today’s market you “must” have a pre-approval letter (or proof of funds) in hand before making an offer. A large majority of today’s investment properties come on the market priced to sell so if you are not ready to act immediately you may be left behind.
  
  
• Step 5: Have a clear idea of what type of property you want to purchase. Being a landlord is not for everyone! If you decide that you are not comfortable being a landlord, for instance, you certainly don't want to start buying up every rental house that comes available. Instead you might be prefer to purchase homes that need TLC, do the repairs and resell them.
  
  
• Step 6: Now that you have a plan, have your financing in place, and know what type of property you want to purchase it is time to look at properties. Make detailed notes, it is easy to get confused after you have seen a number of properties. Stay focused, take notes, and be ready to write an offer on a property that offers the right potential! Remember – Start with a professional attitude, use your real estate investor business plan, and be on your way to achieving success as a real estate investor!

SIX MISTAKES EVERY REAL ESTATE INVESTOR MAKES AND HOW YOU CAN AVOID THEM

What sets truly successful investors apart from those who are only moderately successful or – worse – those who prematurely pack it in and decide to give up on real estate investing altogether? Mistakes do it every time. However, all investors are prone to mistakes. The key to moving forward is recognizing those mistakes and working proactively to keep them to a minimum. Here are some of the most common mistakes – and how you can avoid them.

• 1) Thinking real estate agents and brokers are for "uneducated investors" – A good real estate broker can be one of your best friends. The key is finding one who understands your investing strategy and what it is you’re trying to accomplish. Sure, real estate brokers charge commissions, but if the value of what you receive is greater than the cost, you’ll be money ahead – and it will be reflected in the value of your portfolio.
  
  
• 2) Treating real estate investing as an unusual hobby – Real estate investing is serious business. Fortunes can be made in real estate investing, so treat it seriously. Get a business card and distribute it. Successful investors pass business cards out like Halloween candy. In addition, don’t neglect to establish yourself as a serious investor. Set up an LLC, get a Federal Tax ID number and open a business checking account. You can survive with a personal checking account, but doing so screams “amateur”. Be professional and take the steps necessary to prove that you’re serious about your success.
  
  
• 3) Thinking that your need for education ended with your first property purchase – Your need for an ongoing real estate investing education is as real as the needs your physician or your children’s teachers have for ongoing education. It keeps you up-to-date on strategies and techniques that you otherwise might never hear about.
  
  
• 4) Thinking the Internet is a passing fad – For too many investors, being steeped in the “old” way of doing things is costing you money, profits, and deals. 92% of all sellers begin the sales process online. If you don’t have a website, you’re severely restricting your options – and your cash flow. If you have an artery with a 92% blockage you’re a prime candidate for a stroke. Don’t do this to your business.
  
  
• 5) Ignoring your business credit file – If you have a pulse, you know you have a credit file, but did you know you can build business credit and expand your opportunities? Separating your personal credit file from your business credit file can help you to more quickly take advantage of opportunities, especially if your personal credit is less than stellar. Another benefit to working to build business credit is that all business creditors don’t require a personal guarantee by you, which means that you won’t be personally liable for all of the debts of your business. An added benefit is that you might be able to get better terms for a real estate transaction with your business credit than you could secure with your personal credit, and it won’t affect your ability to buy a new car when you need one.
  
  
• 6) Being secretive about what you do for a living – Let everyone know that you’re a real estate investor. Everyone. From your accountant to your veterinarian, it’s critical that you let as many people as you can know that you’re actively seeking property. The current credit crunch has some unlikely people in a world of hurt financially.
  Most people either know someone or know of someone that you might be able to help out of an embarrassing and time-sensitive situation. Your stock in your community will go up if you can help a friend or even a family member of someone in your sphere of influence. That can pay off dividends now and in the future, so don’t be tight-lipped. Get the word out!
  
  

While it’s possible to have some success as a real estate investor even if you make some of these mistakes, why would you want to? It doesn’t take much to set yourself apart from the crowd and increase your visibility and your credibility. The fewer mistakes you make the better off you are. Go ahead, correct these mistakes that many investors make and free the entrepreneur that’s struggling to rise to the surface. It’s worth the effort. Go ahead, give it a try!