ou've heard of the for them to purchase them later,
potential payoff from real while you accumulate equity.
estate investing. The good There are pros and cons to each
news is, it's true! The bad news of these, depending on your
is, it won't happen for most financial position, your
people. Why? They have location, your available time,
unrealistic expectations. Real and other considerations. We'll
estate investing isn't a "get be going over them all in future
rich quick" endeavor, although it issues of the newsletter. You'll
sometimes happens. No real find the possibilities exciting.
business is. So, prepare to make
a serious time commitment. Would Once you know what you're looking
you expect to become extremely at draft your plan IN WRITING.
wealthy at anything in just a few People who do this get three
months? Know that you'll have to times as much done in the same
keep learning, keep getting amount of time. Set long-term
contracts, and keep putting time goals for 3, 5 and 10 years out
into it. for what you want your cash,
equity, and cash flow to be.
Still in? Great, you're a Then, you can work backwards from
realist! Your first step is to there to set 1-year, 6-month, and
choose an area to focus on. Do 3-month goals. Without this,
you want to purchase run-down you'll be driving without a map,
properties and repair them to taking or skipping deals without
sell for profit (rehabilitate, or regard to how they fit into your
rehab them)? Do you want to buy big picture. Leaves lots of room
properties and turn them quickly for "Wish I'da's...." Don't do
(flipping)? Maybe you want to buy it! You can always adjust your
properties, then lease them to plan as you go along.
potential buyers with an option
Keep your day job for as long as done quickly and right.
possible. If and when it seems
time to go, before you do, get As soon as you decide to get into
some of those low- to no-interest real estate investing, begin
credit cards that are out there. building your list of buyers.
It could really ease some cash We'll be covering more on this
flow worries to be able to tap on later; but, when you meet them,
a $10,000 line if you're doing a learn as much as you can about
fixer-upper and run into an the kinds of deals they do, how
unforeseen problem with no long it takes them to conclude a
additional bank draw in sight. deal, and so on. Most people love
to talk about how they became
Get an attorney who knows and successful, if you ask
understands the creative options respectfully and don't waste
of real estate. Some banks just their time.
don't understand simultaneous
closings, for example; you'll Warning, warning! Think very long
want your lawyer to know how to and hard before taking on a
smooth things so that there partner. If you do, it should be
aren't any snags that cost you somebody who brings something to
time and money. Some even have the party that you don't have,
their own title companies. A good and it should be for one deal
place to ask for a referral is to only until you see how things go.
ask a mid- to large-sized
developer. This is one place not
to haggle about price; he or she Which brings us to how to set up
will be worth their weight in your company. You should set up a
gold when they can get your deals separate corporate entity for
done and you know that you can each deal. An LLC is cheap and
sleep at night because it's been easy to set up. Land trusts are
even better, because your name anywhere. If you're not out there
isn't personally in the public making any offers, you're never
records, inviting some chump to going to close any deals. No
sue you. The idea is to keep your deals closed, no profits. If
personal assets off the table if you're not making any profits,
something goes wrong. Talk with you're not in business, you're
your attorney about it; he has dreaming. Set a number of deals
forms that can have you done in a you're going to bid on per week
few minutes. and per month, and then get out
there. Make it happen!
Finally, if you've made your
plan, you have to work it to get
About the Author:
Lynn Stonebraker has been profiting from real estate since 1987. Get free weekly training in her newsletter, available at http//www.RealEstateInvestingInformation.com.
Source: www.isnare.com
