Posted on November 26, 2015
Real Estate Investing – Knowledge For A Brighter Tomorrow
Mistake #3 – Assuming you don’t need to actively work the business. It sounds great to say you are the business owner. However sitting back and watching, or taking those long dreamed about vacations are in the future. Unless you have major capital and a large store with n excellent manager it is critical that you are present and actively working your dollar store business. Your turn for leisure will surely come, but the time is not now.
So does that mean the deals are gone? Not yet, but they are getting thinner. Foreclosures are down, and inventory is slightly down. What I really see is the quality of inventory is up. Infomercial Real Estate King Dean Graziosi recently told me that the most important bellwether for him is the average Days On Market or DOM. In Orange County many communities have been steady for several months, and several have been seeing a reduction in DOM. I guess Dean would agree that we are near the bottom.
Knowing just who to call and ask for? This is always a challenge and it does mean that you have to prepare for your calls. The best way to do this is to create your call list each evening for the next day.
Find a seller motivated to stop wasting your time trying to make the deals of deals is not there. Motivated sellers to sell a piece of real estate just 3 things: a change in your personal situation. Become very motivated sellers to sell their properties when things change in their personal lives and they can no longer home or there is an emotional reason to sell.
Parents should consider building an investment portfolio for their kids to support the college years. If you already have a savings account, you can earn interest on the real estate investments. Most parents are hesitant to be in the real estate business especially if their children are still young. But this should not be the case; set long term goals and start Dean Graziosi now. When you’re child is already older, you will still need to establish short term goals. By starting early, you can already learn so much from the market conditions.
Before trying to get the financing you need for commercial real estate, make sure you have the proper documents that are current. If you go to the bank with all necessary documents and a well thought out business plan is more likely to get the financing you need.
Take tours of the properties that are potential purchases. Consider taking a professional contractor along with you as you look over the properties that you consider buying. Start negotiations by making a preliminary proposal. Judge the counteroffers prior to making a decision either way.