Every day I have somebody ask me what I do. I say "I"m a real estate investor", that"s when I start getting the eye rolls. Then the excuses start flying. Just the other day I had a guy say "I tried to rehab an investment property, but the market was just too bad, I couldn"t get the project completed, I ran out of funds and that is that". When I hear words like this I just smile, because that guy is not a real investor. So that is why I"m writing this article. I want to give you 3 awesome tips so you are not the guy or gal who is sitting on the side lines while the rest of us are taking advantage of a great buyers market!!! Tip # 1 "" Train Your Mind Having a strong mind is probably the best thing that you can do for yourself in any business. However, this is especially important in real estate investing. Most failures come when the mind tells you it is time to quit or maybe it tells you to never get started. The difference between the wildly successful investors and Mr. I do one deal a year is that the successful investors believe that they can do anything! They never say I am going to try and flip a house. The successful investors say "I am going to flip a house and I am going to make at least 20k doing it!" So, train your mind! Break through those barriers and do whatever it takes to get you into a state of mind that is tough as nails. Tip # 2 "" Learn How to Evaluate a Deal This is a very important aspect of investing and one that you must make sure you do and do well. First off, get yourself a good book on how to estimate repairs and learn it inside and out. You don"t have to know everything to a "T" but you will need to know how to ballpark an estimate and quick. This is what is going to make sure you get the majority of the deals you come across. When you are negotiating with a seller you do not want to be the guy who says let me go crunch some numbers and I will get back to you. Those are the investors that end up calling the next day only to find out that somebody who knew what they were doing came along and put the property under contract. Once you figure out how to ballpark repairs then there is a simple formula that will give you the maximum price you should ever pay for a wholesale deal. ARV*** (After Repair Value) * 65-70% - cost of repairs ***after repair value is found by pulling comps and seeing what similar houses are selling for in the area within the last 90 Days So learn this formula and learn how to estimate repairs and this will give you the confidence you need to make offers. Tip # 3 "" Take Action This is the most important step of all! Taking action is what is going to make you money in this business. I see this everyday especially in my market here in St. Louis. We often times run into investors looking at the same properties my partner and I are looking at. St. Louis is small enough that we often run into one another. Anyway, bottom line is there are several investors around here and other parts of the country that will go out and look at 100"s of house only to do nothing at all with them! Now, I can only speak for myself and my partner here, but if we are taking the time to go look at 100 houses I know based off of our ratios that we are going to take action and flip at least 30 of them. In fact, those were our ratios when we first got started, now we screen all the deals so well that if we are looking at 100 houses 80 of them better work out or we are doing something terribly wrong. Anyway, do yourself a favor and take action. Even if it is just reading a book about real estate investing, I guarantee that if you do something everyday that puts you a step closer to your ultimate goals of being a successful investor that in a years time you will have accomplished a lot! Go Out and Be Successful!!!! Expect Greatness & Nothing Less
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