Empowering Tips For The First Time Real Estate Investor

Here are some simple things that you should consider when investing in real estate, especially if you are a first time investor. They can help avoid pitfalls of being an investor….

*Make sure you have recent comparables. Do not rely on the tax-appraised value of your property. In the current real estate market, comparables need to be current…i.e. within the last 30-60 days. Take a survey of sales, listings, and contingencies. Sales will give you the true current value. Listings will give you an idea where the market is heading. Contingent sales can give you an idea of where current listings will sell at for the given market conditions.

*Find a good licensed handyman. You will probably get a better price than the contractor who arrives in a big fancy new truck.

*Complete the sale. Never go to contract unless you are able to close the deal.

*Target cost-effective homes. Determine your market and stay there. Ask yourself, are you looking to rent the home, or put it on the market to sell? Stick to your plan and do not get lured away by promises or by the greed factor.

*Get the keys. Do not hand over the money unless you are completely satisfied. If there was a tenant living on the premises and you do not want them there, make sure they are gone before you hand over the money.

*Don’t get caught up in the “hype”. Make sure that you can successfully make 20% return immediately. If you follow this rule, you will be successful. Often times, no matter how diligent you do your research as an investor, you may miss something of importance that will cost you money. Do your calculations based on a minimum margin of 20% will prevent you from getting hurt.

*Build a buyer’s list. The more contacts you have, the better your chances of succeeding. Even if you are already under contract, until the deal is closed, things can change. You never know how one of those contacts may help you in the future.

*Be frugal, but do not be cheap. There is such a thing as the “cost of doing business”. That is why you are an investor. You have to “invest” or “spend” to get that return.

*Be wary of the process. Do not go in on emotion. Take some time to learn the practices of bidding and buying in your state. Go to several auctions. Choose a couple of properties and play “practice bidding” to get a feel of how the system works, and most importantly what your level of risk you are willing to take. Doing a gut check on this can keep you out of trouble. When you are ready to jump into the market, be sure that you have the finances in place to complete the transaction.

Following these simple tips can make a significant impact on the outcome and longevity of your real estate investing. Even veteran real estate investors need to review and follow a similar plan. Veteran real estate investors are not immune to the pitfalls of not following an Empowering plan. The market is at all time lows right now. Make your move. Empower yourself in your real estate deals…

Categories: Real Estate & Short Sales

Tags: contingent, Empower, empowering, investing, Investor, listings, Sales, tax

About Martin Casper

Being an entrepreneur has given me a deep appreciation for individuals who are success oriented and never give up. The drive to always “push through” is a trait of successful people. I have been fortunate to associate myself with many successful individuals over my life. It began with my father who instilled in me the ability to step outside of the box…to create something out of nothing. He taught me the importance of integrity in business...traits that I have incorporated into the various business models I employ. I spent the first ten years of my career in the medical field. I worked side by side with amazing individuals who put their own self-interests aside in order to nurture others back to good health. Many times I witnessed life and death situations. It was always humbling to experience the team-work that evolved around trying to save a lives. As my career path evolved into the business world, not only could I bring those experiences into my persona, I saw a need to spread information…real information for real situations. A close friend of mine began to mentor me in aspects of blogging. He has given me incredible insight into how a blog should be developed…how to focus my passion for helping mentor people to becoming successful entrepreneurs. This passion for mentoring others began when I was a young child and continues today. It is not about me, but rather those who have influenced my life. I am a work-out addict and a real “ski dog”. Sorry guys and gals…I do not “ride”. I live for deep powder and steep chutes. I love the feeling of looking over the edge of a steep run…feel my heart beat faster with that adrenaline rush and then “jump in”. I love golf…but I always wonder if I will ever break 100…lol! Most of all, I love my wonderful family…they are the best! Thanks for stopping by and I hope you feel empowered today.