Whether you are BRAND NEW to real estate investing or an expert in the game, it’s critical that you understand these 7 Simple Steps to real estate investing.First things first…o Real Estate is NOT a get rich quick scheme. However, if you learn the foundations and put them into practice, you will make more than enough money to realize any and all of your dreams and goals.o The real estate bubble is not going to burst! The real estate market will, however, shift and the real estate market will change – just as it always has! What’s “hot” now may turn ice cold in the next 3 years (or perhaps even 3 months). But, there are ways to “bubble proof” your real estate investments. It’s actually quite simple.Did you know that in the United States, in 1975, the median home price was $33,300? In 2005, the median home price was $195,000. Historically, the average home doubled every 7 years. If you do the math, it should be well over $200,000.OK… Now, having said that… The real estate market WILL change and what is “working” today in real estate may not in the future… The rental market was strong a decade ago, but has been soft in recent years. We are getting ready for a turn once again.Real Estate IS a cycle… and cycles have some degree of predictability. With predictability, you can grow your real estate business into a cash-producing, profit-pulling machine that runs itself WITH the changing real estate market trends. It is still possible to make money in real estate. In fact, now is just as good a time as any to get started in real estate investing.But, you’ve got to make wise investments. Sure, you may make some SERIOUS cash in pre-construction, but what happens if (no, not if – when) the market shifts and there are suddenly 35 identical properties on the market for sale in the same building? How long can you afford to carry a negative cash flow on the property?Or how about taking over property ‘subject to’? Sure, it’s a great strategy and lenders may be inclined to turn the other way and not exercise the “due on sale” clause as long as the interest rates are at rock bottom prices (You know, those sellers that you’re usually taking property subject to from usually don’t have the lowest interest rates, right?) If the interest rates spike to 10-11%, don’t you think lenders might be MUCH MORE inclined to exercise their option to make you pay off the 6.5% note?What this means is simply that you must be experienced in the basics – the tried and true techniques, strategies and systems that have worked in the past, are STILL working and will work in the future. You’ve got to have all the tools in your bag so that you can go with the flow and not be affected when real estate markets begin to shift (which they are already in the process of doing, in case you’ve missed that memo! Step #1 – Set your plan: Figure out what your long term real estate goals are (aka retirement and wealth building) and figure out what your short term needs are with regard to making money in real estate. Then, set up the proper entities and put the plan in place.Step #2 – Determine what your target market will be: You cannot be all things to all real estate markets. If foreclosures appeal to you, start investing in the foreclosure market. If you want to be a landlord, look to out of state owners to focus your real estate marketing efforts.Step #3 – Be consistent and persistent: Real Estate is not a get rich quick scheme. Real Estate is get wealthy over time and put some quick cash in your pocket today. You’ve got to follow your plan and stick with it to see real results in real estate. You’ve also got to continue to increase your education and your experience.Step 4 – Don’t fall into the “Analysis Paralysis”: Learn to analyze properties quickly. Don’t get caught up overthinking. It’s quite simple actually: What’s the property worth? What does the property need for repairs? And how much can you get the property for? It all comes down to numbers!Step 5 – Become a master of finance!: Real estate is the business of marketing and finance. You must learn about mortgages and interest rates and loan programs that are out there. You must know how to use finance to negotiate your deals and to sell your properties.Step #6 – Become a skilled problem solver: The reason you will get real estate deals that others don’t, is because you are able to solve people’s problems. Anything goes on the real estate playing field. You’ve got to be ready!Step #7 – You must continue your education: It is important that you are always investing in your education and learning new tactics, strategies and tips that will help you make more in real estate.If you enjoyed this article, make sure to look up the other articles discussing The 7 Simple Steps To Making Money on Real Estate. The next article discusses Step #1 – set your plan in further detail!
Are you looking to add a little “cushion” to fall back on when you retire? Wondering how you can make up for all the money you lost from the stock market crash? If you didn’t know already, you can own rental real estate in your IRA account and add tax-free profits to your retirement bottom line. However, there are some pros and cons to doing this, which we will go over in this article along with other ways to profit using your IRA.When you purchase real estate in an IRA account, you must find the right custodian that will hold your funds and meet all your needs. You must also choose to self direct your IRA, which gives you full control over what you invest your funds in. With a self directed IRA, you get to choose from a wide array of investments, but let’s keep this article focused on real estate.You should also be aware of a few rules that go along with owning real estate in an IRA. You cannot take part in a “self serving” deal- meaning you cannot buy a piece of real estate you plan to live in or vacation at yourself. You also cannot allow any of your close family members to live on the property. To be safe, you should not involve any of your family members with any of the real estate in your IRA.This is why it’s so important to find a good self directed IRA custodian who can educate you on this kind of stuff. There are a lot to choose from, so make sure you find one that has plenty of knowledge and experience.So, as you can probably imagine, there are some significant costs you must incur when you own rental real estate in your IRA- all the taxes and fees that go along with owning real estate, repair and renovation costs, realtor costs, etc. Sometimes, these costs can out way the profits you plan to make. To prevent this from happening, make sure you do not go at investing in real estate in an IRA alone.You can also purchase real estate in an IRA and quickly “flip” it for a profit. The process is very similar to the one you follow when you own rental real estate in your IRA, but instead of collecting rent from tenants, you find a qualified buyer to purchase the house from you. And just like when you own rental real estate in your IRA, you should not go at “flipping” real estate alone.HERE’S MY ADVICE TO YOU:Find a well-established company that can hold your hand throughout this whole process. This way, you can utilize the knowledge and experience of a company that knows how to invest in real estate in an IRA the right way.I know of a company like this- one that creates generous returns for investors by involving them in a socially conscious kind of investing. With this kind of company, you can make a generous return on your investment while helping to stimulate neglected communities and create quality homes for hard-working middle class families to settle down in.What if you could be involved with an experienced and well-connected company that provided you with a “hands-off” approach to owning real estate in an IRA? What if this company would connect you with the right kind of custodian, find you the right deals to take advantage of, make all the necessary repairs and renovations, and even find you tenants or qualified buyers for your investment properties?Would this be something that would interest you? IT SHOULD INTEREST YOU!