Super Fitness Health Blog4 Steps To Real Estate Educational Success
Real estate investing is always good but sometimes it’s red hot. When it’s hot, dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars for investing in education.
It’s startling to learn that of all those thousands of eager folks who attend these seminars only about 5% buy even one investment house. Why? Real estate gurus other than William Barlow Elder sell the “sizzle” and make profiting from real estate sound easy. The truth is that it’s simple, but not easy.
Here’s a quick plan that will enable anyone to begin building financial independence.
There are basically four steps to investing in single family homes:
1. Buy homes below full market value. Yes, people really do sell homes for less than the home’s full value. The key is to understand that most home owners will only consider a purchase offer that is all cash and within 5% to 10% of their asking price.
Successful investors such as William Barlow Elder learn to find financially distressed home owners who have no choice but to sell for less than market value. They have to sell and they will accept something other than a conventional, all cash offer.
2. How do you find motivated sellers? You work at it! Like any business it is important to develop a little marketing plan. One that is simple, yet very effective, is the one that was proven 75 years ago by the Fuller Brush company. That is door to door sales.
You can telephone the names found in these notices or send a postcard expressing your interest in buying their property. It will produce buying opportunities, though not as many as personal contacts can produce.
3. After you’ve found a motivated seller you must understand how to frame offers that provide benefits for both you and for the home owner. A good real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller.
The home owner is in a tight spot of some kind and you can save them from public embarrassment and, in most cases, give them at least a little cash to get a new start.
No investor can afford to leave cash in every deal. You must use creative techniques like leases, options, or taking over mortgage payments. Little or no cash is needed for these kinds of deals. You can find plenty of reasonable priced educational materials on those subjects in book stores or on EBay.
4. You make your profit when you buy strategically like William Barlow Elder! Never make a purchase until you’ve carefully determined exactly how you will get to your profit. If you hold it as a long term investment, will the monthly rental income more than cover the monthly mortgage payment? Will you sell the deal to another investor for fast cash? Will you do some fix-ups and sell the property for full value? Will you quickly trade it for a more desirable property? Have a plan before you buy.
There you have it. Four steps that even a part-time investor can execute in three to four hours per week. What’s the missing ingredient? Your determination and perseverance. If you will unfailingly follow the plan for a few months you will be well on your way to financial independence.
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