THE SECRETS YOU NEED TO KNOW
Now that you know the basic advantages and disadvantages of real estate investing, we can review the top five secrets you need to know when making the decision to become an investor. These secrets will answer many of the questions that have gone unanswered up to this point of the book.
In just about any investment industry, you will find there are people who reap major rewards. They are the over-achievers. The investors you aspire to emulate. Without appearing to project effort, these investors seem to always make the right decisions, be in the right place, and always at the right time. They are the tycoons, they make it look easy, and undoubtedly, you want to know how they do it. The truth of the matter is these individuals have done their homework. As you are doing, they have researched their field and know when and how to make decisions. The following secrets are what successful investors already know and what you need to know to follow in their footsteps.
Secret 1 – You Need A Lot Capital to Invest
It is a common misperception that you need a lot of capital to successfully invest in real estate. While it is easy to see why this may be the case, it is simply not true. Investing is very different from say buying your first home. You don’t need to enter the market after making a fortune somewhere else. Investing is not reserved for high rollers. You don’t even need a hefty bank account to make your investment dreams come true. All you really need is a well-researched investment opportunity that has profit potential backed by solid financials.
There are several ways to break into the investing market with little or no cash in your pocket. We will go into depth regarding funding options in the Financing Chapter. One of the best ways to earn a profit via investing is to form partnerships with other investors who already have the capital you need to make the purchase. Perhaps the idea of seeking out investors to partner with is not ideal for you, keep in mind that it is probably easier than you think.
If you have the right deal, there are plenty of wealthy individuals who are willing to make a profit off of your hard work. Think of it from this perspective, if you already had all the money you needed, but wanted to find ways to make more money with little effort, how would you do it? Doesn’t it make sense to let someone do the dirty work for you and simply had over funding and receive a paycheck in return?
Keep in mind, the first investment using this method will most definitely be the hardest one. After that, as you build your portfolio of success, you will have investors hunting you down wanting a part in your next deal. The key here is to stick it out for the benefit of the long run.
Now if you simply are not willing to work with another investor to make your dreams a reality, there are other options. One way to invest in real estate without a large amount of capital is to being as a bird-dogger. A bird-dogger does all the leg work it takes to find the perfect investment. This person knows the market and knows a good deal when he sees one. The bird-dogger is constantly searching for new investments and either sells those leads to a real estate investors or contracts with an investor to earn a finders fee when the property is purchased as an investment.
Secret 2 – You Don’t Have To Start Small
While there is nothing wrong with starting small, understand that you don’t have to. Many people think that because they don’t have a lot of capital, they must start with small investments. The previous secret reveals that this is not the case.
In addition, it is often a misperception that big deals are simply too risky, especially for new investors. Again, not true. It is not impossible to invest in a $250,000 home, nor is it out of your reach to show interest in a $500,000 duplex.
Now surely you are thinking these high ticket items are not for you, but hear me out. While small investments usually ride on the investors earning potential, larger investments are often secured by the