How to Succeed at Real Estate - Installment 1

Looking to start investing in Real Estate? Read this guide that is full of information to help the beginning novice learn how to begin mastering the real estate market. From renting, to selling, to buying my goal is to help educate as much as possible.

Have you ever seen those people who drive big expensive cars, seem to have no worries in the world and envy them from the moment you first lay eyes on them? Do you wish you could live their life? What do you think when later you find out they are so successful due to real estate? I am going to help those average Joe’s amongst us find the information and tips they need to become successful at working in the real estate field. No, I am not talking about going and studying for a Real Estate License, I am not even talking about doing handyman work. I am talking about plain and simple real estate investing.

How nice would it be to own numerous pieces of property that are all able to make you money? It would be wonderful to most people. Real estate investing is not something for everyone however, often times you must be ruthless and calculating to actually succeed. As with any other business, you really need to set goals and attempt to meet those goals as much as possible.

With real estate, there are some characteristics that will help lead to success, and others that tend to lead toward failure. Characteristics like desire and drive, optimism, courage, discipline, determination, commitment and dedication, perseverance, high self-esteem, and organizational skills. Some of the characteristics of failure include procrastination, poor self-control, lack of willpower, and lack of resolve, pessimism, low self-esteem, as well as disorganization.

While these are not sure signs of either success or failure, they are good indicators of whether or not a person will succeed. I am sure you have noticed that the characteristics to succeed in real estate are quite similar to the characteristics in other fields and business opportunities. Perhaps you wonder why should someone invest in real estate instead of investing in the stock market, or perhaps even a savings account?

Quite simply real estate offers something real and tangible that can be liquidated should the need for quick funds come up. Real estate also offers something real that can be used as collateral to continue building your real estate business. I am going to take some time to help educate people in ways to make money from real estate.

Keeping in mind the purpose of a business is to make money, you must use some discretion as to what properties you choose to buy and invest in. Remember that if you are able to pick up a piece of property for a very low price, it may not be worth it depending upon what is wrong with the property to make it appropriate to either sell or rent. We are going to spend the next several installments teaching as much as possible about the real estate market in a beginners course so that those who are interested in learning can learn without spending a small fortune to learn.

How to Succeed at Real Estate - Installment 2

Looking to start investing in Real Estate? Read this guide that is full of information to help the beginning novice learn how to begin mastering the real estate market. From renting, to selling, to buying my goal is to help educate as much as possible.


We are going to start investigating everything that is possible to help the average person succeed in a real estate market. Please realize that this guide is not meant to replace the information that a legal attorney can give relating to the legal issues involved in real estate. Also realize that to really succeed in real estate it is a good idea to have a real estate agent or two that you are comfortable working with, who will call and let you know about properties as they become available that fit into your interest groups. Whether your interest group focuses around the number of bedrooms, location, or the style of the house, or even the asking price.

While some real estate does plummet in price after it is purchased, most real estate goes up in value. If a piece of property is well cared for, and maintained then it is very hard for the value to go down. If however, you do not provide maintenance on your property, and allow them to become rundown and abandoned looking, they will quickly lose value. As with any business, you want your property to be worth as much as possible to see the best financial rewards.

Real estate shows a huge income potential. I will explain several of the ways in which real estate can help increase your income and net worth. Most people think that real estate is only good for buying and selling, however real estate has so much more potential than just being bought and sold.

One option is purchasing property to use for rental property. Rental property if it is properly managed. Being properly managed is so much more than just making sure the roof doesn’t leak and the floor is not caving in. Managing property involves making sure that remodeling is done at times to keep the property modern and up to date. Property at times need new paint, a door replaced, windows replaced, new water heaters, landscaping and so much more to go into the property itself. Responsible property management also includes carefully screening the potential tenants to make sure you choose responsible tenants who will treat the property with respect instead of destroying the property.

Another option with real estate is asset growth. What this means is the property is most valuable to you, simply because you own it. You have no real interest in selling it, but keep acquiring property to increase your portfolio. Most who are interested in this aspect of real estate do typically end up renting their property out. This way the property is able to support itself in rental fees, as well as increase equity for the owner.

Yes, another option exists; with the right accountant, you can save loads of money on your income taxes. To see the best results from this you need a good accountant who is able to find as many deductions possible to save you the greatest amount of money.

One of the biggest advantages to having numerous pieces of property is the fact that once they begin to gather equity, you have several options to pull equity out without having to sell the property which will be the best financial option overall. It is important to pull as little equity out of your property as is necessary, everything that you take out in equity is lost against your assets, as well as the fact that it must be paid back. When you pull out equity there are interest rates and fees associated that could potentially eat up your benefits if you do nothing but continuously pull out the equity.

While owning real estate has great financial benefits, some people also enjoy adding the property to their portfolio. They enjoy finding that special piece of property that ads something they desire to help increase their overall worth. Some investors stick to single-family units, while others focus on multi-family units. The choice is up to you, and the area in which you live. I personally recommend purchasing property near where you live so that you can learn to manage your property yourself instead of having to pay a property management company to do it for you.

However, this is not to say that if you find a good deal you should pass it up because it is not in your area. If the deal is good enough, then the hassle of it being in a different area can be worth it. Check back in the next installment for more information on building your real estate business.

How to Succeed at Real Estate - Installment 3

Looking to start investing in Real Estate? Read this guide that is full of information to help the beginning novice learn how to begin mastering the real estate market. From renting, to selling, to buying my goal is to help educate as much as possible.

While it is a wonderful idea to get into the real estate business, it is important to stress the fact that you must make goals to help guide your business. Your goals need to be long term as well as short term. While you are making goals, you must make sure you are making plans to actually help you achieve your goals.

If you are trying to make a good business from real estate you need to invest in a planner to help you keep your contacts organized, as well as make sure you schedule time to actually actively look for property. If you do not schedule time to actually look for property then you are mostly relying on luck and chance to help your business grow.

You must also schedule some time to start looking for good repair companies. At some point in your real estate career, you will need the services of a plumber, electrician, and a handyman. If you have already done the grunt work of finding someone who you like and trust, then you will save yourself a lot of time and effort as well as wasted money when you are trying to quickly find someone at the last minute to handle your repair emergency.

Repair staff is one of the most valuable contributions to your real estate business. Whenever possible seek the advice and referrals of other real estate investors and real estate agents in your area. If you have used any repair companies with your own personal house then they often make a great place to start with if you are satisfied with their work.

While you are working on building a schedule, make sure you are scheduling time to find a good attorney and accountant. If you have any questions or concerns about any property transactions these people should be one of the first that you seek advice from. Often your accountant can show you good financial reasons to either finish a transaction, or walk away from a transaction.

Take the advice from professionals that you retain to help your business grow. Most of the time they will not steer you wrong, their success relies upon your success and repeat business as well as the good word of mouth advertising that you are worth to them. Use them to your benefit whenever possible.

Now that you have your organizer and know what you need to do to get started, make sure you actually take it with you! The planner will do nothing for you when it is sitting on your desk at home while you are out scouting for property and meeting potential repair staff. Use your planner to take notes about the things you see, and who you talk to that may be useful to you in the future. Even if you dislike a piece of property or a person, make note of that to save yourself time looking at the same property or speaking to the same company in the future.

We have now covered the organizational needs for a real estate business. We will return in the next installment to discuss credit matters and how they can affect your real estate business. I highly recommend checking my article entitled Financial Tips for Those Looking to Buy a House for more information to help improve your credit.

How to Succeed at Real Estate - Installment 4

Looking to start investing in Real Estate? Read this guide that is full of information to help the beginning novice learn how to begin mastering the real estate market. From renting, to selling, to buying my goal is to help educate as much as possible.


Many people are able to become successful at real estate and never use their own credit. However, those people are rare. Most people will look at your credit at some point, if not for the mortgage them for a credit account at the local hardware and building supply store, a repair business, and various other uses. Your credit will speak volumes about your business, especially in a high dollar field like real estate.

Your credit does not have to be stellar to purchase a piece of property. However, it is always wise to know what is on your credit before even beginning a business like this. Go and pull your credit at all three bureaus and ensure that all information is correct and accurate. If you find inaccurate information, ensure you do a timely dispute to get it corrected.

Once you have a nice and clean corrected credit file, you are going to need to keep close tabs on your file to ensure it stays accurate. Remember one false mark on your file can cost you thousands of dollars in interest fees. There are numerous credit monitoring services that you can sign up with that will assist you in keeping tabs on your file. The best offers I have seen, typically offer free unlimited copies of your report through the bureau in which you have purchased the membership.

For example, Equifax offers a 3 in 1 monitoring package that costs less than $13 a month, this includes one free 3 in 1 report and then unlimited free Equifax reports. Most bureaus offer this type of package. The rates will vary depending upon the bureau and the benefits that are offered along with the monitoring service. While it may seem like a waste of money, it is important to make sure all information is accurate on your file, and well worth the expense to an investor.

One useful tool, which will help your credit as well as help with emergency expenses, is a good credit card. A good credit card with the lowest interest rate possible will assist in paying for repairs as they come up, as well as help build your credit rating as long as the card is paid off and kept in good standing.

As you have seen, having good credit is essential to building the best financial opportunities possible. However, even those with bad credit are able to have a real estate business. If you have bad credit, you may need to start with a secured credit card in order to start building your financial future. Seek the help of a credit counselor if you have bad credit that is in need of repair to get the best possible advice. Another option is to seek the advice of your attorney and accountant in regards to cleaning up bad entries on your credit. They can assist in making a payment plan, or securing a settlement offer for bad accounts that appear on your file.

In our next installment, we will be covering a support system that you should have in place. Remember the purpose of this guide is to help the average person who is looking to help improve their financial state and build a steady real estate business, one successful transaction at a time.

How to Succeed at Real Estate - Installment 5

Looking to start investing in Real Estate? Read this guide that is full of information to help the beginning novice learn how to begin mastering the real estate market. From renting, to selling, to buying my goal is to help educate as much as possible.

When you are first starting out in a real estate business, you need as much support as possible. This support includes your repair staff, the attorney, and accountant you are using, and even the space in which you work. While this may seem like common sense, many people avoid and overlook the most basic support systems in favor of saving money.

One of the first things you need for any business is an office, or at the least a desk. Many people have suggested over time a closet; I personally do not like the closet idea since it tends to be so small as well as dark. To be an effective office, most people need good lighting as well as a positive atmosphere.

If you are using a space for an office that you are unhappy with, you will tend to avoid it like the plague. You must make sure your office has a few touches in it that you enjoy looking at so that you will not make any excuse possible to leave and avoid working. Your desk is the same thing, if you are not happy with it, you will avoid it like the plague as well.

Your organizer is another piece of important support equipment. This will become your scheduler, address book, and note pad all at once. It will help you organize that vital information in which you need to access quickly to make informed decisions. Your planner needs to have plenty of writing space so that you can make notes on all of the properties that you scout. Regardless of your purchasing decision, you need to keep the notes on the property for future reference.

A phone is a very much necessary item to have in any business. Real estate is no exception. Remember the real estate agent I talked about before. If you have developed that crucial relationship then you need a phone so that they can quickly get in touch with you in the event that a great piece of property appears on the market. Being able to get in touch quickly means an increased chance at nabbing wonderful pieces of property.

Computers are now also a great piece of support. Having software that will help keep you organized is also necessary. From a word processor to write contracts, to a spreadsheet software to keep a spreadsheet of your properties and their expenses computers can do so much. Software is available that will help you manage your cash flow for each property, as well as all of your properties overall. Never scrimp on a computer, with today’s changing technology buy the best computer you can afford so that you are not out of date immediately upon purchase.

Internet access is also very important. Being able to access the internet from your home and office will enable you to do some much needed research into property values, scout some properties without leaving your home, and even search for repair staff. With internet access, you will likely receive the next important item- e-mail. E-mail is something that is a great time saver to so many, and having it will speed up your response time and enable you to work more efficiently.

If you are choosing to do rental with your property then you are going to want to decide if you want to use the services of a property management company. They will save you loads of time; however also eat into your profits. If you so choose to use a management company, you need to shop around for one, in which you feel completely comfortable and confident in their ability. Ask about their rates, hours of operation, how quickly they arrange for repairs when necessary, and how they screen potential tenants.

Title Insurance is another important investment for the real estate investor. Consider that you will be doing a lot of business with the person; you need someone you enjoy working with, who is honest and willing to work with you to always insure the title of any property you bring. The better the relationship with the person, the more likely you are to have smooth transactions.

An appraiser is also an important person to work with, they can assist greatly in the appraisals of property you are interested in purchasing. While most sellers have had their property appraised, you never know how honest and trust-worthy their appraiser is. Having someone you, trust is important so that you know for sure how much the property is potentially worth.

A banker is also an important contact; this is the person who you will be working with quite often when mortgages and other financial needs appear. You need someone who works at a good reputable bank that treats you with respect. You will want to avoid banks that are rigid, and unwilling to develop a good working relationship with you and value your business.

To make sure your potential property is safe, and see exactly what needs to be potentially fixed with the property, you need to find a property inspector. You need someone who is honest, good, and skilled. You do not want someone who you have to follow around constantly because you do not trust them. You want someone who is able to put you at ease. A good property inspector can help you make very informed decisions about all of the property you are considering buying. Some houses are hiding very major problems underneath the foundation that the average person is not able to notice.

While we are discussing important people, let us not forget one of the biggest key players. An insurance agent. You need someone who does not mind handling multiple properties, with various types of policies depending upon the exact needs of the property.

We have now covered the basics from who is important to helping you succeed, what essential equipment and supplies you need, as well as important credit matters. We are now going to proceed along in the next installment with much more information in Installment 6 we will cover how to find what investors describe as flexible sellers, what that means and how they can be very beneficial to the starting investor.

How to Succeed at Real Estate - Installment 6

Looking to start investing in Real Estate? Read this guide that is full of information to help the beginning novice learn how to begin mastering the real estate market. From renting, to selling, to buying my goal is to help educate as much as possible.

We have covered a great many topics and now we are going to move along to how to find flexible sellers, what that means to you, and how you can use a flexible seller to your benefit. While some people are fortunate enough to have enough credit, or cash on hand to outright purchase property, most beginning investors need to find those who are willing to work out special financial deals of some sort in order to actually get started. Most people do not have credit that is strong enough to hold two mortgages, not without putting down a quite substantial down payment, enter now the flexible seller.

Flexible seller does not describe a seller who is willing to sell on the weekend, or even in the middle of a football game. Instead, it describes the type of attitude that the seller has towards the sell of their property. A typical flexible seller is someone who needs to get some money out of their property quickly, as well as has no desire to continue owning the property for whatever reason.

Reasons why someone would want to quickly get rid of property can include but are in no way limited to; divorce, unemployment, impending foreclosure, job transfer, property management problems, and being unhappy with the purchase for some reason or another. The more desperate a seller is to get rid of a piece of property, the more likely they are to be flexible, which means the more likely you are to be able to work out a mutually beneficial arrangement.

Flexible sellers are typically flexible in either the price of the property they are selling, or the terms in which they will sell it. Those who offer owner financing are flexible sellers. Those who offer to hold a second mortgage on the property to cover the down payment are also flexible sellers. These will be some of your most valuable sellers over the course of your investment career.

If you pay close attention to ads, you will come to easily spot those who are flexible with those who are rigid. Those who are rigid will not negotiate any of the terms of the sell, they want their money, for the exact amount in which they have, the property listed for sale, and will not budge a penny from the asking price. Unless you find a very desirable piece of property that, you badly want for some reason these sellers tend to be more difficult to work with.

Remember the more desperate the seller is, the more likely they are to accept flexible financing options so that they can quickly close the sale of the house and move along. Flexible sellers are in for fast closings and do not want time wasted with a dog and pony show when they could be showing their property to other interested buyers. Make sure, if you are interested, you ensure the sellers realize how interested you are, but that you want to come up with a mutually beneficial arrangement for you both.

In the next installment Installment #7, we will cover what type of property is generally most desirable from an investment standpoint, as well as some tips and strategies on how to locate these desirable pieces. Continue taking notes, and start looking in the paper to get a feel for your local real estate market as you continue learning and growing as an investor.

How to Succeed at Real Estate - Installment 7

Looking to start investing in Real Estate? Read this guide that is full of information to help the beginning novice learn how to begin mastering the real estate market. From renting, to selling, to buying my goal is to help educate as much as possible.

For this installment, we are going to get right down to the nitty gritty business of determining exactly what property is the best for investment purposes. As I am sure, you know there are several types of property. One type is vacant lots; these are pieces of property that have nothing but a few trees, some grass and probably a few insects on them. There are no buildings of anything else on them that can give the potential to generate a cash flow each month.

Another type of property is commercial property; commercial property sums up anything and everything that has to do with businesses, and is zoned as such with your county. This can be something ranging from a bank, to a tattoo shop, to even the grocery store down the road. The types of commercial property range greatly from a parking lot, to a 100-floor building to almost anything in-between.

Next, we have residential property; this includes several subclasses of property. Residential property is any property in which it is zoned and fit for habitation, meaning people live there. The subclasses of residential property include single-family homes, apartment buildings, and multi-family homes such as townhouses, and duplexes. While single-family homes are more common and can be purchased cheaper, there are some great deals floating around the real estate market for multi-family housing units. The costs for multi-family units must be carefully weighted, especially since they typically cost so much more than the average single family home.

The final property type that we will look at is called distressed properties. These are often the best place to invest money. They are pieces of property that have been neglected, and therefore need some serious TLC to help restore the property to the grander and honor that it deserves. Yet they are a gold-mind. At the hands of the right investor, distressed properties can have an incredible return rate on the investment. Consider for example, if you purchase a distressed home for $10,000, then put in another $10,000 in repairs, however you are now able to rent the home for $500 a month, it is only a matter of a few very short years before you have your money back out of the house entirely. This is something that many property owners pray for the opportunity to be able to do. However, single-family housing is not the only type of housing that can be distressed, multi-family units as well as commercial property can also be distressed. Less often vacant property can even be distressed, especially if the owner does not have the time to maintain the grass and the property becomes overgrown and the city starts complaining about its appearance.

As you are looking at property, you will begin to notice a price scale. This scale ranges starting at inexpensive, then progresses to moderately expensive, then expensive, and finally ultra-expensive. Most of the properties that will give you the best return on your money will be in the inexpensive to moderately expensive range. To determine the exact range for your area will involve a bit of research into current market value, as well as recent sale prices of other property in the same neighborhoods in which you are scouting.

As you have learned in this installment, the best option for investment is the lower price ranges of property. You want to keep your investment expenses low so that you can make as much money as possible, after all without making money you are not a very successful investor. Now that you know the best types of property, as well as the price scale you should be looking at, you now need to spend the time doing research in your area for the specific price scale you should be looking at, as well as starting to call some sellers in your area so you can gain valuable telephone experience.