You Too Can Be a Millionaire Real Estate Investor

LET’S BEGIN AT THE BEGINNING
An artist once said, “To paint the perfect painting, first live the perfect life, and then just paint naturally.” The message here in your new found career as a real estate investor might be translated like this: “In order to make the perfect real estate investments, first live the perfect real estate investor’s life, and then just invest naturally.”

Notice the emphasis here is on living the kind of life, if not perfect, then at least the kind that is most appropriate to the activity you intend to pursue. Another way to look at this is to say those who are most successful are those who already are living most successfully. Success breeds success. If you’re going to play the part, you should already be living the part. A lot of how successful you’re going to become is based on how successful you already appear to be. There’s still a lot of truth in the old-fashioned idea that, to get a new job, first go out and buy yourself a new suit.

If you don’t communicate to the world that you’re already successful (even if you’re not there yet), then you at least need to communicate to the world that you’re already in business. How you do that is outlined in my text entitled “100% Financing When Buying Real Estate.”

BE A SEASONED REAL ESTATE INVESTOR RIGHT FROM THE START
At the moment you may very well be working full-time (40-50 hours per week) for somebody else. You may be working overtime, or even two jobs, just to be able to pay all your bills. So right from the beginning you don’t have much time to spend as a real estate investor. Believe it or not, this puts you in exactly the same “shape” as the most successful investors! As you can well believe, the whole idea of becoming emmensely successful is to be able to spend most of your time (40-50 hours per week) doing something else. Like enjoying yourself, partaking more in family life, or traveling extensively for pleasure. So your task at hand is to replace your current full-time job with forthcoming full-time pleasure, and in the meantime live just like a successful real estate investor does.

The successful, or seasoned, investor in real estate spends his or her minimum investing time in the most productive ways possible-just like you should. This seasoned professional has all the knowledge, all the tools, and all the experience needed to invest profitably and successfully. The very reason why you’re reading this text is to acquire the same knowledge that most of these others have only gained through experience. Hence, this is a shortcut to success as a real estate investor. You’ll acquire the knowledge you need in just a few weeks, instead of several years. Armed with this knowledge, you’ll easily be able to acquire the right tools, and your first experience should be positive. After that, it should become even more so, building your confidence as you experience continued success based on the knowledge you acquire right here, right now.

The first thing to do then is to act the part of a seasoned real estate investor. An important part of that is having the knowledge-which you are acquiring-about creative real estate financing, as, say for example, “100% Financing When Buying Real Estate.” My real estate investment course teaches you many ways to do exactly that, and you should review this material often as you begin and continue to invest in income producing real estate.

One of the most important parts of this material that you should begin immediately to absorb, and review continuously until you’ve mastered all the terms, in the glossary of my text, “100% Financing When Buying Real Estate.” The first thing anyone needs to learn when taking on a new role in life is the language of that role and/or that career. Ask any Shakespearean actor, for example. Thus the sooner you learn the lingo of real estate investing, the sooner you can present yourself as a seasoned real estate investor. So please be sure to purchase my text entitled, “100% Financing When Buying Real Estate.”

How to Get Real Estate Leads

Starting in real estate with the concept of lead generation will put you miles ahead of your competition. Most real estate professionals start with the idea that if you just have a few key relationships in place you will experience tremendous success. While relationships certainly are important a solid lead generation plan is essential when you want to close business each and every month.

Getting high quality real estate leads isn’t something that will happen with only 10 minutes of work, but when you put just a little bit of planning in you can have a consistent flow of people contacting you each and every day. Here are some tips to focus on for generating leads every day.

  1. Focus on Lead Generation – When you focus on lead generation you won’t send any marketing out that is just “branding”. Branding ads waste money and won’t generate leads. Keeping your focus on leads will ensure that any marketing you do (online, print, etc) will have the focus on generating calls and leads. This focus may seem odd to those around you in the real estate community and that’s OK. Many times in real estate it is suggested that you have to “introduce yourself to the community” or “get the word out” but that just wastes money. Keep the focus on what will generate leads each and every day.
  2. Investing – Leads will rarely come free. Investing some capital into your real estate business will help you to get leads at a much faster rate. A good rule of thumb to stick to is spending no more than 7% of a standard commission on your advertising. Every 7% you spend should generate 1 transaction.   Sticking to the 7% rule will keep more money in your pocket and make your marketing work harder for you. Anything that isn’t generating leads for just 7% of a commission will have to be cut.
  3. Marketing Strategy – I am a big fan of an online real estate marketing strategy, but it’s not for every agent.   Having a plan in place for your real estate lead generation activities will make it easier. It doesn’t have to be complicated, just know what steps you are going to take to generate leads. This may mean having more than 1 system to generate leads for you. Top real estate coaches around the country recommend having 4 marketing systems to generate leads for you.   Each system must adhere to the 7% rule and must generate at least 2 transactions a month. The systems involved with your marketing strategy can be varied (i.e. websites, blog, postcards, magazine ads, etc.) but just ensure that each of them are generating enough leads for you to close 2 transactions per month, per system.

With just the above three steps you will be able to start getting real estate leads [http://www.onlinerealestatesuccess.com/products_lead_system.shtml]. Remember, your plan doesn’t have to be complicated; it just has to have enough steps so you can see where you need to take action. Keeping your focus on generating real estate leads (and making sure it’s cheap) will have you closing transactions each and every month.

Why Real Estate Investing is Better Now Rather Than Later

In this article, we’ll consider why you should start real estate investing now rather than later and then follow it up with a few suggestions to help you get started.

The proverbial saying “time is money” is true in real estate investing. Due to a phenomenon known as compounding, money grows faster and faster as time goes by. So the sooner you put your money to work in a real estate investment, over time the more money you will accumulate.

Say, for example, that you start investing $1,000 a year into real estate for the next forty years. At a 9% annual rate of return, your $40,000 cash investment (thanks to compounding) will grow to over $369,000. Whereas, if you wait ten years before you make that investment, that same amount only grows to about $150,000.

In the same way, the longer you wait to get started real estate investing, the less time you have to combine the factors of time and compounding interest, and hence (assuming all things equal) the less wealth you can expect to accumulate as a result.

Say your goal is to retire at age sixty-five. Because of compounding, you stand a far better chance of achieving more wealth by retirement if you start investing at age twenty-five rather then at thirty-five, or forty-five, and so on.

How to Get Started Real Estate Investing

  1. Develop a plan – How much can you invest comfortably? Are you expecting cash flow or merely looking to make your money when the property is resold? How long do you plan to own the property? What amount of your own effort can you afford to contribute? What amount of wealth do you plan to accumulate, and by when?
  2. Acquaint yourself with the local rental market – Read the local newspapers and see what types of income property have the highest demand for tenants. If there are tons of classifieds seeking apartment tenants, perhaps retail space is more in demand, and vice versa. In other words, learn what product would be best for you to invest in.
  3. Acquaint yourself with the rates of return – At the very least understand the difference between cash and cash return, return on equity, and cap rate. Whereas cash on cash might show what your cash investment might achieve in one year, and return on equity over future years, cap rate helps you choose a property at a fair market value.
  4. Invest in real estate investment software – It is never a good idea to rely on someone else’s numbers. It’s your money. Always run your own numbers on potential investment opportunities. Having the ability to create your own rental property analysis gives you more control about how the cash flow numbers are presented and a better understanding about a property’s profitability.
  5. Create a relationship with a real estate professional that knows the local real estate market and understands rental property. A qualified real estate professional acquainted with your market can be a real plus. It will not advance your investment objectives to spend time with the agent of the year unless that person knows about investment property and is adequately prepared to help you correctly procure it.
  6. Avoid buying into real estate investing “trade secrets”. Tons of real estate investing gurus out there repackage and sell the exact same material as the next guru. The sizzle in the business of real estate investing, however, is about owning a piece of ground that, if unduly researched and purchased sensibly by impartial numbers, with careful management, will likely be more valuable tomorrow than it is today.

How Much Do You Need to Get Started?

There’s no set amount to start real estate investing. You could start out very small and then as you begin to earn more, start contributing more. Start perhaps with 2% of your income and then add a percentage point more each year to your contribution.

The important thing is to start real estate investing now, while “time is on your side” and you can in fact take advantage of a favorable real estate market and compounding interest over the passage of time to achieve your retirement goal.

Here’s to your real estate investing success.