According to the founding fathers of our great country, the laws of basic human behavior and civil conduct were based directly on the Ten Commandments of the Bible.
As real estate investors, I believe we also have laws for basic success behavior and civilian profitability.
Ten Commandments for a Successful Real Estate Investment Career
1. Make suggestions! I must submit at least 3 WRITTEN offers a week. My experience has been to help thousands of investors and students over the years with their businesses because offers are usually the number one reason why a business will not explode in profits. If you do not make offers, you will not make any money. I know it sounds simplistic, however it is a real gem of advice. Remember, this must be a written offer – oral suggestions are just a conversation.
2. Secure financing! I need to talk to at least 3 sources of funding a week. These sources of money will come from OPM's "Last Five Years" and are: 1. Personal money, 2. Partnership money, 3. Professional money, 4. Private money and private money in the bank. If you make at least 3 offers a week you will start filling your transaction pipeline and you will need financing that will be ready to close your transactions. Until you know you can pick up the phone and get in touch with enough money you can buy 3 homes this week, all CA $ H, you will continue to collect sources of funding.
3. Orientation to details! I must be attentive to details regarding contracts, agreements and paperwork. In real estate, if it does not exist in the contract, it does not exist! It is the same as our offers, if it does not write the call. Other bad deals were done because the investor thought one thing and the seller or buyer thought of something else Make sure you put it all in the contract. Overly in this area is very good. Follow the "DUMB Focus List Enough Deal" to make sure you have covered your assets.
4. Market, Market, Market! I will continue to market for incoming offers even when I feel I have too many deals. This is the second most common mistake I see investors make, both new and experienced. We start getting a bunch of deals on our way and we feel overwhelmed or scared so we will stop marketing. no no no! This is when we simply adjust the amount of profit that we are willing to work for and we start using our list of buyers to whittle away the offers we can't handle or don't want, but never stop marketing!
5. The human touch! I will maintain the "human touch" in my business by answering my phone. In this day of amazing technology, it's easy for us to bring in the ease and convenience of gadgets, but it's so expensive! No, I'm not talking about the cost of gadgets, and I'm talking about the cost of missing out on deals. If you use voicemail or even an old answering machine to make calls, you are losing money. Hangouts in our business are just too expensive to have. Missing a phone call early in my business cost me $ 60,000 profit! It still hurts to think about it. Use an answering service to allow a person to answer your phone when you are unavailable. Answering services in today's economy are cheap, missed deals.
6. Know the numbers! I will know the component numbers of my transaction from the inside out. In the real estate investment world there are loads of "OOPS" waiting with their names on them. If you do not know exactly what something will cost, please do not guess, find a professional in this field and get a solid number. Fix you did not see because you tried to save a few hundred dollars by not testing the property Professionally, it will now cost several thousand to repair, oops! Of course this is valid for every area of your business, and not just for repairs. Know the numbers to eliminate the OOPS!
7. Know the ports! I will have my "exit strategy" before I make a deal. I fly close to 100,000 miles a year and I heard the flight attendant say "Please find the 2 ports closest to you" probably 1,000 times. On one flight, it occurred to me what an important lesson this is for investors. Before you ever take off (make a deal) know your exit strategy. Many investors jump on a deal without thinking about it until the sale of the property. If you do not clearly know the exit (how you are going to pay) stay away from the deal.
8. Don't take it all out! We've all heard the need to save for a rainy day, guess what, it's always raining somewhere! And sooner or later it will rain on you. Many of the new investors, experienced investors, as well as myself, have been blamed or blamed for spending all the profits from the deal. Please follow this simple cash flow formula for wealth; Tithe 10% and keep 20% in the business. You are 10% 10% because you must pay back. You save 20% of every dollar of profit in the business because no real estate business can operate completely without a few.
9. Be sure to ensure and promise! I will ensure good nights sleep and secure my wealth as I secure my business. In a country that is approved in our lawsuit, it would not be economically wise to run any business without general liability insurance for business. For $ 100 a month, many commercial providers will provide $ 1 million in general liability insurance. This is the same thought process as car or health insurance, you hope you will never have to use it as well, it is better to have it and not have it than you need it and not have it.
10. INC. This is before you ink it! Aggad ("C" Corp., "S" Corp., LLC or any other appropriate entity structure) my business so that I have some protection against frivolous claims. I will not jeopardize the financial well-being of my family or family by not having an entity structure. I will seek qualified advice in this regard and now I will get it!
"The Ten Commandments in Successful Real Estate Investment," Copyright © 2006 by Bill Barnett. Learn more about Bill Barnett and "Are you fit enough to be rich? "Visit our website