- Form a Mastermind Group. Napoleon Hill saw the wisdom in linking arms with others when he wrote Think and Grow Rich. Find people who understand real estate investing from different perspectives, such as an attorney, accountant, Realtor, builder and a banker, who would be willing to give you advice and guidance.
- Eliminate Personal Debt. It is very difficult to invest in rental real estate if credit card bills and car payments are eating up your available credit and your resources. Suze Orman has some great information on how to do that. http://www.suzeorman.com/.
- Create extra revenue. Look for ways to make money on the side to allow you to invest or cover for a vacant property.
- Read, read, read. Become a student of the business. Start reading books written by Robert Kyosaki, such as Rich Dad, Poor Dad and Cash Flow Quadrant.
- Identify the greatest need in the marketplace. What segment of the population is underserved? Why is that so? Is there a trend that could be emerging?
- Identify potential houses. Find houses that match the greatest need. Start with homes that are already on the market. This will give you a good idea of what is available and the expectations of the sellers.
- Do a cash-flow analysis. Evaluate each property by comparing potential rents versus potential expenses using a spreadsheet. (Contact me if you want to use mine.)
As with any investment, real estate investing comes with inherent risks. The way to safely invest in real estate, or any other investment is to do your homework, be patient and be disciplined. I know it can work for you, because it is working for me.
More to come.
Dan.
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