There are SO MANY so called Real Estate Gurus out in the market place and I really hate to see anyone give them their money! For all of the 20 years that I have selling Investment Real Estate; sometimes it baffles me how these people can take the money from investors-many of whom have little experience.
I have given seminars for Investors since 2003 and I do not want a dime upfront. If I do my job correctly-including educate the Investor; there is not any reason that I do not get compensated for my efforts on a performance basis. Meaning COMMISSION!
Here is what every Investor in Real Estate needs to know-simple steps.
- Pick a Power Team-which means a Broker (preferably a CCIM) that understands the market that you want to invest in.
- With the Power Team- Make sure that the Broker is strong and well connected to the sources that you need(Lawyers, Lenders, Inspectors and other Brokers as well)
- Decide on your PATH. This can mean several things such as what type of asset class do you want. Why do you want to invest? How long do you want to hold the investment? Make sure that your Broker not only understands this but also has the well rounded ability to explore all possibilities with you. Often times when someone visits with me, by the time we are finished with the conversation we are exploring a different path.
- Make sure that you get “papered up”. This means your entity that you are going to use to buy the Asset with. Don’t wait until you go to contract. Contracts can be overwhelming and why not get some of the details completed before you go to contract. You will be busy enough with the Due Diligence that you will not need to be distracted by the paperwork of the Entity,obtaining your EIN number, and establishing the correct bank accounts.
- Speak with either your CPA or your Power Team’s recommended CPA. While your CPA may be great; get the advise of a good Real Estate CPA. Like all professions-some CPAs are better at different things.
- GET QUALIFIED-in today’s world, if you are not qualified the contract is not worth the paper that it is written on!
- Be prepared to write a contract. This does not mean the closing price-it means get the deal and figure it out! Rely on your Broker to advise the offering price. Many markets need a full price offer to obtain the accepted contract.
- ASK QUESTIONS! If I do not hear a question after explaining something; I can only believe that I was understood. The only “stupid” question is the question that is not asked!
I could go on and on and often I do but here is the BEST advise I can give-no matter what market or even country that you invest in:
Give a Tenant a CLEAN place to live
Give a Tenant a SAFE place to live
Give a Tenant responsive property management
Do this and you will not experience vacancies, you should be full and I can speak from experience that you will get above market rents!
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