“In twenty years, you will be more disappointed with the things you have not done than with the things you have done.” – Mark Twain
Real estate investing is actually quite simple. If you think it will be the year that you start investing in real estate, but doubt and fear paralyze you, overcome these feelings by following a basic investment process. If you do it step-by-step and spend enough time researching each step, you can find good properties that will produce huge amounts of wealth for you over time. And, once it starts, it will be easier.
For us, simplified real estate investment is carried out in five stages:
1. Set specific goals.
2. Find and research a market in which to invest.
3. Find and rate the properties.
4. Buy the property that meets our goals.
5. Make money through good property management and paperwork.
When we deviated from these steps, we made mistakes. When we skipped the goal setting phase, we ran out of cash back that could have gone bankrupt. When we abandoned market research, we ended up with a condo in a Toronto neighborhood that has grown by more than 2,000 THE SAME SIZE condo units in the five years after purchase, and when we were neglected in Our property selection. managers or tenants (in the income phase) we have suffered the consequences of fines and tenants who do not pay the rent.
Our life of real estate investment has the intrigue of a great fact for the television movie. It was dramatic and often too stressful. But, we could have avoided most of the drama by spending a little more time on each stage. If we did, we’d only have a few good stories to tell … not dozens!
So to start investing in real estate and feel good about this first step … DEFINE YOUR GOALS. We set goals for our health and wealth. Like losing weight … it’s too easy to say “I want to lose weight” and do nothing. It’s also too easy to say “I’m going to be rich,” and then wallow in pain when it just doesn’t happen. You will never get there just by thinking about these thoughts … You have to be specific about what you want, then act.
And with the real estate sector, it’s essential to know where you want to go before you start. To determine the type of property you are looking for, you need to know exactly what you can invest (in terms of time, effort, and money) and what you want to get out of real estate investing.
Ask yourself a few questions:
– Is it more important for you to find a property that does not cost you a lot of money or that does not cost you a lot of time?
– Do you have a lot of free time?
– You are close? Do you want to work on the property?
– Do you plan to do a lot of work on the property yourself, or would you rather not get too involved?
– What is your risk tolerance?
– Do you want real estate to be your main source of income after a certain period of time?
– How much money can you (or want) to spend on real estate investments compared to other investments?
– Do you have good credit?
Without a clear understanding of what you want to achieve, it is very difficult to start. It is also very scary! Be clear about what you want to do, take a few steps, and you will soon feel safe and ready.
If you are new to goal setting, here are the simple steps we use:
1. Start by listing everything you want to accomplish in your life. We do it without judgment. We list everything from learning the drums to mastering Spanish and owning enough real estate to generate $ 25,000 a month in net income each month. No judgment … just lists everything.
2. Review your long list and find the ones that interest you most for years to come. We highlight them, then proceed to break them down into smaller steps that we need to take to head towards
each of these goals in the next 3 years, next year and next month.
3. Write it down, share it with someone who supports you (it will act as a boost when you lose your target site or need a recording).
4. DO EVERY DAY something that will lead you to one of your goals. For a new real estate investor, this should be tied to research: learning as much as you can about the market you want to invest in, tracking property values and rental rates, and being very comfortable with what’s going on in you. , two or even three markets where you are thinking of investing. This prepares you to spot opportunities and be confident when the time is right to move. The key to this is to commit to spending at least 30 minutes a day toward your goal. THERE ARE NO EXCUSES! You can find 30 minutes during a lunch break, get up a little earlier, or just turn off the TV after dinner and work.