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.

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.

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.