Real Estate is traditionally one of the best investment vehicles available. Over the last century, investing in residential real estate and commercial real estate has proven to be one of the best ways to build wealth over time in the United States. And has outperformed just about every other form of investing over the longer term. What this has meant though is that the area has become increasingly competitive for would be investors in the United States, and so it is increasingly important to be fully informed of the latest legislation, tax considerations and real estate investment strategies BEFORE dipping your toes in the water.
Here is the Three Step Real Estate Investors System to ensure that you are around for the long haul:
1/ Be ready to work with Agents – Agents can either be some of your best friends, or your worst nightmare in the real estate game. You need to create relationships with them so that they call you first when a good new property comes on the market. They need to know that you are serious, and that you will actually follow through if they find you a property that appears to fit the profile you have described to them. This profile needs to be in terms of several different factors:
Price – The price has to be right for the type of property, the condition and the area.
Type – The agent needs to know if you are only interested in flats, six bedroom houses or commercial property. Be very clear with them about what you are seeking.
Area – The property can be just the right type. A great price, and in great condition. But if its in the wrong area, forget it! So make sure that your agent knows whereabouts you are seeking to buy property, so that you neither waste his time or yours in looking at real estate that you will never be interested in.
Condition – Are you willing to take on re-developments? Or are you only interested in new builds? Make sure that your agent knows.
2/ Bank Owned Properties (also known as Real Estate Property or REO) – Banks take back ownership of properties because the owner failed to make their mortgage payments. And this can be a real goldmine if you tap into it correctly. Make contact with all the banks in your area and get on their books to be informed when they have any re-possessions that need to be sold quickly, and hopefully for a very reasonable price.
3/ Door to Door Marketing – Door knocking is a lead generation, qualification, and development tool used by real estate investors for years to gather information, build rapport, and negotiate with the seller. Fortunately it is also a technique that you can use. Get some cards printed up and leaflet an area you want to invest in with them asking for people to contact you directly. You may be surprised at how many responses you get.