10 Tips in Real Estate Investing
After spending a great deal of time and money, I came across some valuable information I trust will help you in your real estate investing. At times we just need to remember what our next steps should be in order to continue to build a real estate portfolio. So, here are 10 tips you sure consider in real estate investing.
1. Make Offers. Set a goal to make a minimum number of real estate offers each week. A goal might be three written (not verbal) offers per week. If you don't make any offers you can't make any deals. Many people fail to follow through on this first tip and miss out on an opportunity just waiting to happen. Please note this MUST be a written offer - verbal offers don't lead to a commitment.
2. Secure Funding. In order to complete the offers you are making you need to have the financing to make the deals happen. Therefore, make it a goal to talk to at minimum of three funding sources per week. These funding sources can come from any of these five sources. The 5 P's of using Other Peoples Money "OPM"
- Personal Money
- Partnership Money
- Professional Money
- Private Money
- Private Bank Money
If you're making your minimum offers per week you are going to start filling your pipeline and you are going to need all the funding you can get to be ready to close your deals. So, until you know where you can pick up the phone and get the funding you need for the deal, keep collecting funding sources.
3. Be Detail Oriented. You need to be detail oriented when it comes to your offers, contracts, agreements and paperwork. In real estate, if you don't put it in the written contract, then it's not in the deal. You have no right to expect it to happen. Be clear in your wording. This will prevent any misunderstanding by buyer and seller if you will just put it in writing. You can't say it too often in the contract. Just be consistent in your wording.
4. Market, Market, Market. You should continue to keep marketing for new deals even if your pipeline is full. You just never know when another deal will be available. So, keep your pipeline flowing and don't stop marketing. Simply adjust up the amount of profit you are willing to work for, but don't stop marketing.
5. The Human Touch. Keep the "Human Touch" in your business by making personal contacts and if you have an assistant, let it be a human who answers the phone. Even in our technology world, it's easy to give in to the ease and convenience of gadgets, but it can cost you on missed deals. Consider using an answering service so you can have a human being answer your phone when you're not available. Answering services are fairly inexpensive and you won't miss the deals. 
6. Know your Numbers. Know what each area of your business is inside and out. Know what it costs to put in kitchen cabinets, a new bathroom fixtures, heating and air conditioning, carpeting per foot, etc... Know exactly what something will cost you, keep reviewing the marketing and look for less expensive sources. Please don't guess, if you need to find a professional in a specific area to get a solid number, then make arrangements to do so. A repair that you did not see because you were trying to save a couple hundred dollars by not having the property professionally inspected, may cost several thousands in repairs in the long run. So remember, know your numbers and eliminate the mistakes.
7. Know your Exit Points. Have an "Exit Strategy" in place before you do any deal. Many investors will jump into a deal without thinking all the way through to the sale of the property. If you do not clearly know the exit, you don't know your profit. So know how you are going to get paid, so you know what deals to stay away from.
8. Don't Spend It All. Many new investors, and some seasoned investors are guilty of spending all of the profit from a deal. Please follow this simple cash flow formula for wealth: Tithe 10% and keep 20% in your business. By giving your tithe of 10%, you are giving back and you will reap the rewards hundreds of times over. You can never be to giving! Then, keep 20% of your profit invested in your business. You need cash to operate your real estate business.
9. Be Sure to Insure to Assure and Ensure. You need the rest and the ability to keep your stress level to a minimum, so you need to insure your business. This will ensure your wealth stays with you. I can assure you this is true. Unfortunately, our world is lawsuit happy and it would be financially unwise to run any business without General Business Liability Insurance. For about $100 per month, many commercial carriers will provide one million dollars worth of general liability insurance. Same process goes for your auto and health insurance. It is far better to have it and not need it than to need it and not have it.
10. INC it Before You Ink it. Consider incorporating your business with a "C" or "S" Corp., LLC, Limited Partnership or other appropriate legal structure, and consult your attorney in this process. A corporation will provide you part of the protection you need from frivolous lawsuits. Don't risk your financial wealth by not having the appropriate legal entity in place. Again, seek competent legal counsel in making this happen, but "Get it Done!"
Tips to make your Real Estate Investing more profitable and rewarding!
David L. Britt, MBA
Olathe, Kansas
David L. Britt Real Estate
Heritage Real Estate
The Heritage Real Estate Team
Olathe Neighbors 
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