Tue 18 May 2010
Learn the Basic Principles of Real Estate Investing
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Real estate investment principles should never be forgotten whether you are new to the investing game or a proffessional.
You can grow your property folio by applying various strategies . These include investing in rental apartments, single family homes, industrial property, retail real estate, office space, hospitality or oversea properties . You can also gain expertise in flipping houses, lease options, investing in off plan property or purchasing at foreclosure sale . But these can never supersede the central principles.
There can be diverse strategies and methodologies for creating wealth through properties but the principles of property investing are eternal .
In my experience professional investors at times tend to become over confident and flout the basic principles . Unfortunately this results in thier down fall . So please study the following fundamental principles of real estate investing with care .
Basic Principles Real Estate Investing :
* You will become rich if you buy and hold property for as long as possible
* Always invest in high cash flow properties. They will give you peace of mind when the markets are down.
* Do the Math’s – Investing is all but numbers
* Always study the location. It should be easy to rent.
* Buy properties only from motivated vendors
* Buy your properties by using OPM or Other Peoples Money.
* Make Use of the Property Cycle to speed up your growth
* Negotiate Everything
* Educate yourself. There is no greater leverage than knowledge
* Take Action
A brilliant investment property is never seen with the eyes it is always seen by the mind . An uneducated human will pass a property and find no merit in it. . It takes an investors mind to spot a great property . Knowledge of property investing holds the key to success .
It is fear that keeps people away from buying property . Fear burns in the fire of knowledge . You can never get rid of fear totally . You have to act in good trust and intelligence. Inaction will keep you tied to poverty . Once you begin taking action your experience and self-assurance in property investing will make headway.
Inaction will always lead to failure . When I started out I had no knowledge of real estate investing .My mentor was a very rustic real estate broker . He virtually pushed me into buying a boutique shop he was selling. . The only sensible thing I did was to take the leap of faith and get pushed into buying my first investment property . I have never looked back since. For the first few years I was a ’street smart’ property investor . I was learning by taking action .
Apply these basic principles to the the extent you can. Experience will follow . Think big but start small. A few small steps will change the financial out come of your life .
Knowledge and application of these principles will be the key to your success in real estate investing .
My recommendation is that you read the ‘Principles of Real Estate Investment‘ in depth to get better understanding of the subject.
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