This article is dedicated to helping our RealSuccess students thrive in real estate whether they’re brand new to real estate investing or an expert in the game, it’s critical that you understand these 7 Simple Steps to real estate investing. 

First things first:

1- Real Estate is NOT a get rich quick scheme. 

However, if you learn the foundations and put them into practice, you will make more than enough money to realize any and all of your dreams and goals.

2- The real estate bubble is not going to burst! 

The real estate market will, however. Shifts in the real estate market will change just as it always has! 

Did you know that in the United States, in 1975, the median home price was $33,300? In 2005, the median home price was $195,000. Historically, the average home doubled every 7 years. If you do the math, it should be well over $500,000. 

Now, having said that, the real estate market WILL change so what is working today in real estate may not in the future. The rental market was strong a decade ago but has been soft in recent years. We are getting ready for a turn once again. 

Real Estate is a cycle and cycles have some degree of predictability. With predictability, you can grow your real estate business into a cash-producing, profit-pulling machine that runs itself WITH the changing real estate market trends. It is still possible to make money in real estate. In fact, now is just as good a time as any to get started in real estate investing.

But, you’ve got to make wise investments. Sure, you may make some SERIOUS cash in pre-construction, but what happens if (no, not if but when) the market shifts and there are suddenly 35 identical properties on the market for sale in the same building? How long can you afford to carry a negative cash flow on the property?

How about taking over the property subject to? Sure, it’s a great strategy and lenders may be inclined to turn the other way and not exercise the due on sale clause if the interest rates are at rock bottom pricing. If the interest rates spike to 10-11%, don’t you think lenders might be MUCH MORE inclined to exercise their option to make you pay off the 6.5% note?

This means you must be experienced in the basics and true techniques or systems that have worked in the past, that are STILL working and will work in the future. You’ve got to have all the tools in your bag so you can go with the flow and not be affected when real estate markets begin to shift.

Step #1 –Set your plan: Figure out what your long term real estate goals are (aka retirement and wealth building) and figure out what your short term needs are regarding making money in real estate. Then, set up the proper entities and put a plan in place.  

Step #2– Determine what your target market will be: You cannot be all things to all real estate markets. If foreclosures appeal to you, start investing in the foreclosure market. If you want to be a landlord, look to out of state owners to focus your real estate marketing efforts. 

Step #3 – Be consistent and persistent: Real Estate is not a get rich quick scheme. Real Estate is getting wealthy over time and putting quick cash in your pocket today. You’ve got to follow your plan and stick with it to see real results in real estate. You also need to invest in advancing your education and your experience. 

Step 4 – Don’t fall into the “Analysis Paralysis”: Learn to analyze properties quickly. Don’t get caught up overthinking. What’s the property worth? What does the property need for repairs? How much can you get the property for? It all comes down to numbers! 

Step 5 -Become a master of finance!: Real estate is the business of marketing and finance. You must learn about mortgages and interest rates and loan programs that are out there. You must know how to use finance to negotiate your deals and to sell your property. 

Step #6 –Become a skilled problem solver: The reason you will get real estate deals that others don’t, is because you’re able to solve people’s problems. Anything goes on the real estate playing field. You’ve got to be ready! 

Step #7 –Continue your education: It is important that you are always investing in your education and learning new tactics, strategies, and tips that will help you make more in real estate. At RealSuccess we provide a comprehensive program to fully support our students to achieve financial freedom through real estate investments.