The real estate investing business is like two businesses one buying and the other selling. In your real estate investing training the first part is learning how to buy, this is the most important thing to master because unless you learn to buy, nothing will happen. It does take some effort and skill to learn to be a good buyer but first you must learn how to figure out what a property is worth and how to negotiate the best price.
It’s in buying the property that you make the profit. One of the first Real estate investing tips is to develop the correct negotiation skills.This is very important because if you don’t buy at a big enough discount you may not make a profit.
Real estate investing is a people business not a house business. We are always buying from people and the better you get at the negotiation the more you can help people and yourself. You need to be able to show sellers, why you buying their house is a great option for them because that’s all they care about. We are usually dealing with people in some sort of situation where they need need help and it’s your job to find a solution for them. We are paid to find solutions that they may not know exist.
You must know why you are buying the house and what are you going to do with it. There are only 2 reasons to buy and they are either to resell or to hold long term. If you are looking for quick cash you are going to want to sell quickly. Sometimes that $30,000 check today is much more appealing than the $200,000 profit in 15 years. On the other hand if your goal is long term profit from the appreciation and loan pay down your goal would be to hold and let your tenants pay for the house.
Real estate investing for beginners can look overwhelming at first. The key to approaching it is to just break it down into small steps and then just keep taking the steps. It’s like learning to ride a bicycle, you start out with training wheels then dad takes them off but you don’t yet have the confidence to just ride. So dad runs along side of you for a couple of times then he lets go without you knowing. You didn’t even notice he let go at first then you realize you are riding by yourself, you did it!
The real estate investing business is just like that, none of us start with total confidence but we develop it as we learn and grow. Find yourself a mentor who will help you develop the confidence you need in this business and your life will be forever changed.
If you would like more info or just want to discuss pursuing real estate investing further contact me at: email@example.com
We’ll get to the selling in a future post.