Real estate investment and barriers

As a real estate investor there are some barriers which keep you from being successful. You want to be a Real Estate Investing Millionaire, but for some reason you can't seem to find good deals on houses. This is a natural enough reaction from people who are asked to take a risk with their investments on a daily, almost, basis. Going around with a Realtor, driving around nice neighborhoods, looking for Sale signs, looking on the web, telling a few people that you buy houses, etc are the most common ways that people adopt. These are a major waste of time. What you are doing is looking for deals on houses and not looking around for people who need to get their problems solved. Spend time knocking on the doors of homeowners in foreclosure. These people usually have serious issues that need to be solved. No one sells their house at a serious discount unless they have to. You should be ready to put in all that hard work that will free you from the daily wage-slavery you are in. If you think you have understood this, feel that the time has come and you are prepared to learn, then this should be the first step in a journey that will take you to the rest of your life.

Avoid dealing with Realtors

As real estate investors, we buy houses from people that we need to sell, not that people want to sell. When you are dealing with a Realtor, 9 times out of 10 they will show to you are nice houses, owned by people that have no urgency to sell. Avoid dealing with Realtors. Not saying to completely alienate yourself from them - that can be foolish. Just network with them, and let them know if some killer deal comes along, and you can close with cash quickly. Detail about what you are looking for, and that's when they will call you. Don’t go around looking at houses with them. Many realtors are not trained to look for the types of deals that we are looking for. Actually, they will probably tell you that it is not possible to find the kinds of deals that we do.

There are many courses which purport to show how to invest in real estate

While there are many courses which purport to show how to invest in real estate, only a few actually tackle emerging markets in our country precisely because there is a lot of skill required to correctly identify them and then take advantage of them. If you are not yet ready to leave the rat race behind and embrace a future where your hard work allows you to enjoy anything you really want then maybe you are not ready to take advantage of any kind of real estate investing, never mind investing in the tough environment of an emerging market. The first thing to tackle of course is your own motivation. In order to be successful in any kind of real estate investment in an emerging market you need to do some careful analysis, you need a lot of drive and the vision to see what few others can see clearly at that stage.

With a long lease option, you can then sell the property for high price

A lease option has more longer term than a straight option - usually for a period for as long as one year or longer. Some lease option will even stretch to three years, depending on the whim of the seller. While your lease is ongoing, you can rent out the property and be in a positive cash flow. The second advantage is that the property is appreciating in value. If you have a longer lease option, you can then sell the property for the highest price you can get. Most new investors, and plenty of more experienced ones too, like to stick to what - and where - they know when it comes to investing their hard-earned cash in equities.

Emerging markets

Emerging markets are which are in the grip of a sudden growth or are in receipt of government incentives which help spur growth. A savvy real estate investor will be able to understand what makes the emerging market attractive - by learning the trends right from the start. In this perceived simplicity hides a world of some complexity on how you correctly identify an emerging market, how you go about finding the right real estate investment opportunities in it for you and how you then go about taking advantage of these while minimizing the risks, as much as possible, for yourself. A savvy real estate investor identifies the opportunities in real estate properties that he should invest in and makes the maximum amount of money in the shortest time possible.

Seller financing

If the seller does not need immediate cash, they may consider to finance you. You can write a mortgage contract, agreeing to pay the seller a fixed percentage rate, and set monthly payments. After you sell the property, you can then pay off the mortgage note to the seller. Whatever way you look to finance your real estate investments, make sure your cash flow calculations work. The financing will be easy to find if you have good cash flow numbers on your deal. Money is required to do a deal, and no-money-down means that you do not put any of your own out of pocket funds into the investment.

Hard money lenders

Hard money lenders are those who specialize in real estate investing. They will normally lend up to 70% of the after- repair- value (usually said as ARV), on your property. Hard money lending is only a short term financing, and the interest rates are very high. It is sometimes 14% or more, but unlike with normal banks and their financing, Hard money lenders will get your funds to you fast. Normally this is sanctioned in installments as work is completed. Hard money is good for those who need to get funds fast to do a deal.