Real Estate Investors will come across many “rules” in their businesses. Many of these “rules” are not laws or regulations, though we are definitely faced with many of those as well. But the rules I am speaking to are more “rules of thumb” meaning a broad application of an easily learned or easily applied procedure. What follows are Five Easy to Follow Rules to Successful Real Estate Investing…
Five Easy Rules to Successful Real Estate Investing:
1. Do Your Job
3. Be Honest
4. It is the Deal Not the Outcome
5. Do Not Let Fear Rule Your Life
Being a Real Estate Investor takes a lot of effort. You have to find lots and lots of Motivated Sellers. You have to go look at lots of houses. And you have to make a lot of offers.
Most importantly you have to give your best effort all of the time or you will cheat yourself and anyone else involved.
It takes a good bit of effort just to come up with leads. It takes even more effort to go out and look at properties, make offers and then sell the property.
Point two involves listening and paying attention. It is important to listen to what the seller is saying, and not think about how much money you stand to make. If it is not a win-win transaction the deal will not work.
You have to ask questions to make sure you are on the same page with the other party. There have been many deals that fell through at the last minute because of a miscommunication. This is a big waste of time and money.
Point three is being truthful. You should never mislead anyone when trying to make a deal. A deal based on dishonesty will always come back to haunt you. Your reputation has to be worth more than a few extra dollars.
Real Estate Investors who are dishonest will eventually be out of business. It is that simple. No one will do business with a dishonest person, no matter what type of business it is.
That is the ethics message being pounded home again. I am happy to see that more and more people (and Real Estate Investment Association meetings) are taking the opportunity to discuss ethics in the Real Estate Investment business.
Point four is that every deal does not have to happen. If it does not work for all parties involved then it is not a good deal. Sometimes you just have to walk away if it is not right, regardless of the possible outcome.
If you are attached to the possible outcome you may overlook some very important factors. You may be thinking about the ,000 you are going to make, but if you overlook something you could end up losing money.
Sometimes it is best, though not always easy, to pass on the marginal deals. Often times a great deal is just around the corner. Sometimes it is difficult, especially in the beginning, to not to get caught up in the excitement and begin looking forward to making all of that money. It is normally best to stick to your numbers and remove your emotion.
The fifth rule is to continually conquer your fears. All Real Estate Investors have fears that pop up at different times. The things that we fear are those things we are least familiar with. Do not let fear rule your life. Every successful person has had to overcome any number of fears.
Often times you can overcome your fear by taking action. Are you afraid to make calls because you might be rejected? Then make 50 additional calls until you are comfortable. Are you afraid to make an offer, because you think it will be flatly rejected? Then make 100 offers until the fear is gone.
As you can see the above five easy rules to successful Real Estate Investing can be easily applied whether you are an expert Real Estate Investor or just starting out.