Dozens of books exist that try to teach the potential real estate investor that there is nothing special about investing in real estate, and that everyone can develop the skills to be good at it.
Robert Kiyosaki's Rich Dad books (by Robert Kiyosaki) represents a lot of these kinds of books. Even though he started the book series, by developing the idea in “Rich Dad, Poor Dad,” that wealth is determined by a person's financial philosophy, he’s not the only author working on his books. He introduces the reader to the possibility of mentors, or experts, that share their expertise about buying MN investment properties with the real estate investor. One of Robert’s advisers is Ken McElroy. Robert Kiyosaki values Ken McElroy's expertise to the extent, that he invited Ken to work with his books.
In “The ABC's of Real Estate Investing,” McElroy explains the complete necessity of finding experts to help you with your investment properties. There are countless reasons to employ experts to support you, but the 2 most notable ones are time and knowledge. Those 2 reasons feed into each.
For instance, although the real estate investor needs to have a fundamental understanding of accounting, finance, law, building construction and the markets, there is no way he will ever be able to achieve expert status in ALL of these fields. He needs to become a specialist in the real estate markets that interest him. This in itself will use up most of his time.
Therefore, if he attempts to buy a property using that basic understanding of building construction, for instance, he will probably make wiser decisions than the average citizen attempting to do the same. However, there is a big probability that he\she will fail to notice something that an expert architect will spot right away. bringing your expert along on his\her building inspection is as critical as an amateur adventurer having a guide with him on a walk through the jungle.
Now, consider this. Even if you were able to establish expertise in all these fields, you still probably shouldn't spend all your time dealing with them yourself. When there are accounting issues to deal with and legal issues to deal with, there simply isn't enough time in the day to manage it all. You ought to be out making contacts and staying up with the market place. It is much more cost-efficient for you to simply pay an expert to do it, while you go out and do what you do best.
And all this is before the investor purchases the property.
Once you purchases the Minnesota investment property, you will have many new “problems” to solve. There are as many things to think about after purchase as before. That's why the sophisticated investor has a team handy with professional advice for every step along the way. This is the step in which an property investing consultant's knowledge becomes unquestionably important.
Teaching someone a course in real estate investing doesn’t take place in a classic classroom setting. You won’t find your best lessons indoors, but out on the field where you start to move about and learn the market from the inside out. Even if you’re not a real estate expert, there is something that you can learn every step of the way.
The key to success in real estate investing is learning from your mistakes. This is one of the essential components of the industry, and it’s what differentiates the successful investor from the unsuccessful one. When starting out, it’s important that you are learning as much as possible about the neighborhood, the people, the culture, and research the market. You might start out by visiting politicians or setting up meetings with real estate experts in the area. Whatever your approach may be, it’s important to understand that you will make mistakes along the way, but learning from them is your greatest lesson.
Even when hindsight is part of your new perspective, you will fare far better from understanding the key areas that you made your mistake. If you end up buying the wrong property, or had a lack of information about a particular deal, forgiving yourself and then moving on is the only way you can move ahead. The next time, you will be much more vigilant and can take a new approach.
Making a mistake the first time around is always all right; it’s the only way you’ll learn, and there are many ways that you can make the best use of each experience. You’re bound to learn much more about investing in real estate from making mistakes, than you are by listening to a lecture or reading a book. Robert Kiyosaki’s Rich Dad book series is a great way to start, and you can find out the key lessons that many other new investors learned in their ventures.
The national average for real estate appreciation in the U.S. has been 6% - every year - for the last 80 years.
What that means to me is that every year you and I DON'T invest in real estate is another year that we're LOOSING money!
My goal for 2007 is as follows:
- Reduce my debt to income ratio
- Buy another investment property
- Build my wealth
This is a simple yet effective strategy that WORKS for successful real estate investors and it will work for YOU as well...
The big challenge for most of us here in America, is the "Reducing Debt to Income Ratio". This includes paying down credit cards and outstanding loans, because most of these debts are "bad debt" (debt that COSTS you money) as oppose to "good debt" (debt that MAKES you money).
This takes discipline and foresight - and the will to sacrifice short-term pleasure for long term gain. That's why my goal this year is to reduce my "bad debt" so that I can continue to buy investment property (the key to getting rich with real estate investing is contiuously buying real estate as an investment).
It's important that you educate yourself.
You can enroll in my free "Investment Property Program" if you want to learn more about the approach that I use to aquire and manage my own Minnesota investment properties.
The national average for real estate appreciation in the U.S. has been 6% - every year - for the last 80 years.
What that means to me is that every year you and I DON'T invest in real estate is another year that we're LOOSING money!
My goal for 2007 is as follows:
- Reduce my debt to income ratio
- Buy another investment property
- Build my wealth
This is a simple yet effective strategy that WORKS for successful real estate investors and it will work for YOU as well...
The big challenge for most of us here in America, is the "Reducing Debt to Income Ratio". This includes paying down credit cards and outstanding loans, because most of these debts are "bad debt" (debt that COSTS you money) as oppose to "good debt" (debt that MAKES you money).
This takes discipline and foresight - and the will to sacrifice short-term pleasure for long term gain. That's why my goal this year is to reduce my "bad debt" so that I can continue to buy investment property (the key to getting rich with real estate investing is contiuously buying real estate as an investment).
It's important that you educate yourself.
You can enroll in my free "Investment Property Program" if you want to learn more about the approach that I use to aquire and manage my own investment properties.
How does real estate investing work? Visit my Squidoo profile to learn more...
