2008/09/18

Why Property Investing Success Is A State Of Mind

Everyone wants to be rich, right? Well, actually, everyone says they want to be rich. But few people want to actually take responsibility for taking control of their future. And that's what you have to do in order to get rich: Take control.

To create wealth, you must first become financially intelligent. If this sounds hard to you, well it isn't; one could fill entire libraries with what has been written regarding how to make a fortune, and the more you read, the more you'll know. Don't worry about where to start - right now, as you read this article, you are beginning. to develop the tools you need.

With each real estate book or article you read, you come one step closer to having the tools you need to become rich. The most important lessons you'll learn from your studies, however, aren't about the minute details of the real estate business - that's what you hire other people to handle. The real lesson is that in order to become a successful investor, you've got to think like one.

The most important thing, bar none, that you can do to improve your financial situation, is to develop the ability to think like an investor, rather than an employee.

This may seem quite simple (and it is!), but the investor perspective sets the stage for you to become rich. From the employee's perspective, one must do exactly what the boss instructs, and work within the established system to earn their livelihoods. Those with this mindset always manage to get by, but if you want to do more than just get by you must obviously take a different approach.

If you want more than that- to be rich, for example- you have to start thinking like the people who control the money. Think like the people who work smart, not hard. With a little thought, you can figure out how to make your money work for you.

The people who think in this way are the ones making the real decisions behind the scenes. That is, not those working as employees, but those at the helms of major corporations.

That's right- the businesspeople. But they are only near the top of the food chain. If you go to the very top, what you find is...investors.

In contrast to hired employees and even major businessman, investors are the real financial top dogs, and this is because they really and truly have their funds working for them. This may seem like an oversimplification, but the truth is that it isn't as difficult as it may initially appear - in fact, just about anyone could do it, provided that they aren't trapped in the mentality of an employee. This self limiting, "employee," mindset is, at its heart, the reason why most people are unable to become rich.

Want to become rich? Start investing! That's all there is to it. One great way to get into investing is through real estate. This is due to the fact the investments in property tend to be quite stable, so you shouldn't have much trouble getting a loan to start investing in it.

One can't overstate the importance of learning the ins and outs of money and investing, but what it comes down to really is that you have to change the way in which you think. Once you've begun thinking rich, you need only keep working at it in order to find success.

This Article Has Been Brought To You By Real Estate Investing Mentor Alex Anderson Who Connects Investors With High-Quality Real Estate Investment Opportunities. Get A Free Copy Of The Investors' Rental Guide At: http://www.GreatInvestmentProperty.com

2008/03/10

A wise skeptic never makes assumptions. [Real Estate Investing 101]

Some people equate real estate investing with playing the lottery. They are under the impression that it is all about being in the right place at the right time and that makes them take either of two possible mindsets. These people will either leap into the game without looking , or they'll steer clear of investing altogether, seeing it as nothing but a fraud.

Though a certain degree of skepticism is an admirable personality trait, it isn't good for someone to be so skeptical they never even try. Robert Kiyosaki's Rich Dad series portrays real estate investing as to be easy. Too easy, really, if you fail to see that the Rich Dad books are simply meant to prepare the future investor to educate himself further on real estate investing. The series itself isn't a comprehensive education in investment, just a primer.

After reading a couple of Kiyosaki's books, you will understand the rudiments of real estate, and why anybody can grow into a prosperous real estate investor. Skeptics who are not so skeptical they believe the whole thing is a crock, will realize that there is much more to learn about real estate investment.

The wise skeptic (as opposed to the cynic) realizes that doing one's homework plays an essential role in the ultimate success or failure of an investor. It is essential to understand the way in which one must do that research and what details one must gain from it, and one must proceed to put that knowledge into practice by putting in the effort to actually do that research.

Investors ought to study up on the areas of the country in which they can see themselves investing, learning about the pertinent economic factors, whether the area is attracting people in or repulsing them, whether businesses are entering the area or businesses are closing up shop. These are just a couple of the things an investor must know regarding an area in which he plans to invest, but they are extremely important.

The true skeptic knows that just because he reads an area is doing wonderfully, it doesn't mean no further research is in order. The relevant facts must be checked and rechecked with more than one or two sources. Cities must be visited. Officials of the city must be met with. Experts should be consulted.

A wise skeptic never makes assumptions. Skeptics do their research, as do good investors. Successful investors allow experts to lead them to more experts. They question politicians and businessmen in the area. They get the relevant authorities to back up their impressions rather than simply giving glowing reports on their city.

The process is about putting in the work to get the information you need. The smart investor isn't afraid to ask questions and lots of them. A little bit of skepticism never hurts.

2007/12/13

Avoid a Headache by Hiring an Investment Property Consultant

I have many books that attempt to instruct the hopeful real estate investor that there is nothing magical about buying investment property, and that you and I can understand how to accomplish it.

The Rich Dad-Poor Dad book series (written by Robert Kiyosaki) is an example of a lot of these kinds of books. Although he started the series, by introducing the idea in “Rich Dad, Poor Dad,” that riches are influenced by a person's philosophy on money, he is not the only author working on his books. He presents the reader to the concept of advisers, or specialists, that distribute their expertise with regard to real estate with the investor. One of his advisers is Ken McElroy. Robert Kiyosaki values Ken McElroy's expertise to the extent, that he invited Ken to work write his book series.

McElroy points out (in “The ABC’s of Real Estate Investing”) the absolute necessity of employing specialists to help you with your investment properties. There are quite a few reasons to employ experts to support you, but the two most important ones are time and knowledge. Those two reasons feed into each.

For instance, though the real estate investor needs to have a basic knowledge of construction, law, financing, accounting, the market, etc., there is no way she will be able to achieve expert status in every one of those fields. He absolutely must become an expert in the markets that interest him. This alone will use up most of his time.

So, if he attempts to make a purchase using that basic knowledge of contracting, for instance, he will probably make wiser decisions than the typical home buyer who is trying a similar thing. However, there is a big probability that she will miss seeing something that an expert building engineer will see right off. bringing your expert along on his\her initial inspection is as important as an amateur adventurer bringing a guide with him\her on a walk through the jungle.

Even if you were able to establish expertise in each those areas, you still probably shouldn't waste all your time dealing with them yourself. If there are accounting issues to deal with and legal issues to deal with, there just is not enough hours each day to deal with it all. You ought to be out networking and staying up with the markets. It is much more cost-effective for you to just pay an expert to do it, while you go out and do what you do best. (Or at least what you are endeavoring to learn).

And all this is before you purchase the investment property.

Once the investor buys the investment property, you open a whole new can of worms. There are as many things to think about after purchase as before. That's why the savvy investor has a team ready with professional advice at every step of the way. It is at this step in which an MN investment property consultant's knowledge becomes invaluable.

2007/04/25

Real Estate Investing - What is a HOT Market?

The hot market is a buzzword in the real estate investing industry, and there are many ways to tap into this core piece of the real estate puzzle. Successful real estate investors take advantage of hot markets with a balance of the right timing and taking bold action; sometimes the greatest financial rewards also involve the greatest risks.

The ‘ABCs of Real Estate Investing’ touches upon this subject. The author Ken McElroy simply defines a hot market as one where property is in short supply but in high demand. In these cases, the property value can reach record-breaking levels in investment dollars, attracting investors and property owners from around the world. Even when these properties may not be visually appealing or attractive, there is a lot of potential to invest money in upkeep and maintenance to bring it onto the market.

A piece of investment property with enough personality and attractive features can also be a part of a hot market. Many neighborhoods with attractive residences become a hot market on their own simply because of their ‘cool factor.’ It may not matter to potential buyers that there is limited maintenance or upkeep available; the property may just have a high property value because of its presence in the area.

Interestingly enough, military bases are a valuable area for many real estate and property investors. Investors have found ongoing success in these areas, but not always; they can be an attractive investment in the short term, and then sold easily to maximize the return.

A hot market is simply a popular place, an attractive locale or neighborhood where people enjoy living. Property values are frequently attached to the popularity of a particular destination or location, and this is where real estate investors can make the most of their investments with continued success.

2007/01/13

My Real Estate Investing Goals For 2007

Okay - Here's what I'm up to in 2007!

The name of the game in real estate investing is to buy investment property - and then keep buying more - continuing on - to purchase and maintain as much as you possibly can, thereby building your wealth with equity.

I intend to add 1 or 2 new properties to my investment-portfolio this year, but before that can happen, I am planning to work on my debt to income ratio first!


This means focusing on paying down my debts, such as credit cards, vehicle and home equity loans, so that I can leverage my credit to buy more real estate investment property. This strategy will raise my current credit score and lower my debt to income ratio giving me more leverage to buy.

I'll admit, this isn't all that "sexy" - in fact it's not easy for most Americans to do, but it's an important part of playing the "Investing Game".

Discipline is a core component for a real estate investor to be successful - sacrificing a few short-term pleasures for long-term results. I’ve seen too many investors lured by the glitz & glamour of those late night commercials, but fail in the real world because too much financial risk was taken initially, lack of discipline, lack of coaching or no long term commitment to managing and maintaining their properties.

Having the goal of continuously building my wealth by investing in real estate helps me to stay focused on my future every time I want to spend money on anything I don't need (buying "do-dads" as Robert Kyiosaki puts it in his "Rich Dad" books). Each time I make a purchase of any kind I have to check: “Do I actually need this? Or would it just be" cool"?! ("do I really just want it, but not need it.”). If I find myself buying an item I don’t actually need, I usually choose to keep the money & put it to work for me somewhere else.

When I make those smarter spending decisions I can make larger payments on my credit cards and outstanding loans - and as I mentioned, by the end of 2007 it's my goal to buy another income property either here in my home town of Minnesota or buy another Florida Investment Property (I'll most likely invest in Orlando because the appreciation is so good there right now).

Florida adds more than 275,000 people to their total population every year, not to mention the ever growing tourist industry, technology industry and medical industry. Many of the people moving in are baby boomers migrating away from their home states and needing places to live. They in turn, create additional service jobs to cater to these retirees, making Florida a great state to invest in IF you know where to invest.

So anyway, that's my real estate investing goals in a nutshell for 2007 -

  • Pay Down My Bills
  • Buy More Property
  • Build My Wealth

It's really a very simple formula that makes sense - is proven to work for other successful real estate investors – and it can work for YOU as well.

Enroll in my free (no obligation) Investment Property Program if you would like to learn more about building your wealth by investing in real estate - and visit my other blog to find more real estate investing information.

2006/12/12

Real Estate Investing - You Don't Have To Be Rich To Get Started...

What do the majority of wealthy Americans have in common?

They own investment property...

You don't have to be rich to get started investing in real estate - but unless you do get started, you probably won't ever be rich.

There will never be a better time to invest in real estate than now! - Most people make the mistake of waiting for someday/maybe buy investment property - I I believe that this is a BIG mistake!

If you are currently renting - I recommend that you start by purchasing your own home first. Buy a duplex or triplex, or at least a house with extra room that you can rent out. This will allow you to begin building equity (that you can use to purchase more rental property with) while your renters pay down your mortgage for you. ;-)

This is the essence of investing in real estate - having renters pay your mortgage while you grow your equity!

(I model the "Rich Dad" philosophy for building wealth)

Once you have a little equity (in your home)the next step will be to buy investment property - either in your home town (if you want to manage it yourself) or in another appreciating market - that has onsite management.

There are advantages to both of these.

I own both Minnesota Investment Property as well as Florida Investment Property and although my Florida properties have onsite management, I choose to manage the residential rental property myself.

Get a free copy of "The Investors Rental Guide" by enrolling in my FREE "Investment Property Program" - this guide will save you tons of time, money and frustration when buying investing property that you intend to manage yourself.


2006/11/13

What is Being Wealthly?

What is the difference between rich and wealthy? The difference could be described as either working for a living or making your money work for you.

In other words, when you are wealthy, your money works for you - and owning real estate investment property is an example of this. Good investment property (in a good area and property managed) makes money work for you by providing a cash-flow, appreciation, and tax benefits.

By consistently purchasing income properties, and positioning yourself wisely - you will eventually have enough income that you won't have to work an 8 to 5 job. To me this is being wealthy.

Achieving financial wealth through real estate investments is long term, and can be risky if you don’t do your homework.

This is why I advise all of my clients and associates to surround themselves with a team of experts to assist in making wise decisions and learn from the experience of other successful real estate investors.

You can save yourself a great deal of time, money, and frustration when investing, by following the steps laid out in "The Investor's Rental Guide" - now available at my website: www.GreatInvestmentProperty.com

Investment Property Specialist - Alex Anderson Connects Real Estate Investors With High-Quality Investment Properties. 1-888-253-1193