Simple 4 Step Property Investment Strategy

Real estate investment is definitely fantastic and at times it might be red hot. When it's hot many property training seminars begin running throughout the country and many people pay thousands of dollars for investing education.

It certainly is astonishing to learn that of all those thousands of excited people who go to all these seminars no more than 5% acquire even one investment house. Why? The property gurus market the "sizzle" and make cashing in on real estate appear effortless. The truth is that it is very simple, but is not effortless.

Here's a quick strategy which will enable anybody to get started on building financial independence.

There are actually essentially four steps to investing in real estate:

1. Buy properties less than full market value. Indeed, people do sell properties for less than the house's total worth. The most important thing is to understand that a majority of property owners will only consider a purchase offer that is all cash and around 5% to 10% of the price tag.

The successful investor will seek out financially distressed property owners who may have no other choice than to sell cheaper than the true market value. They may have lost their job or been unexpectedly transferred; they may be divorcing; they have been living outside their earnings; the family has been bogged down with medical expenses and, not uncommonly nowadays, their money has gone to support a substance abuse habit.

These are examples of motivated sellers. They have to sell and they will settle for anything save for a regular, all cash offer.

2. How would you track down motivated sellers? You work at it! Similar to business you need to create a little marketing strategy. One which is easy, yet still very effective, is the one that was demonstrated 75 years in the past by the Fuller Brush company; door to door sales.

You are promoting your ability as a property buyer to the people who really need to sell. Your are right at hand as soon as they require you and you have the ability to help them resolve at least a portion of their problem. With door to door prospecting you will learn more and purchase more homes faster than any other strategy. Nevertheless, a lot of people simply will not likely walk door to door for three or four hours each week. OK, several tactics.

You can keep an eye on public notices for the announcement of foreclosure sales. Meeting with a home owner right after they've received a notice that they may be about to lose their property enables you to deal with a very motivated seller. Other public notices that provide purchasing potentials include probate, divorce as well as bankruptcy. You can follow the Homes For Sale listings in your local newspaper as well as Online websites.

You can telephone the names contained in these types of notices or, and this could be the least time intensive, send out a postcard expressing your interest in buying their property. It is going to generate purchasing potentials, simply not as many as personal contact.

3. After you've identified a motivated seller you need to understand how to shape proposals that offer rewards for both you as well as the home owner. An excellent property investor swiftly learns that this is absolutely not a case of stealing property, but of resolving issues in a fashion that is beneficial to the seller.

The property owner is in a jam of some kind and you could save them from open embarrassment and, quite often, give them at the least a little money to have a fresh start.

No investor have enough money to pay cash in every transaction. No one except Bill Gates has that much available cash. You should use creative techniques like, leases, option and taking over home loan repayments. Minimal cash is required for those deals. You will find lots of affordable educational product on those subjects in book stores or on EBay. The exact same education that seminars sell for thousands of dollars.

4. Make profit as soon as you buy! Never ever invest until you've very carefully calculated precisely how you will profit. In case you keep it as a long term investment does the monthly rental earnings more than cover the monthly mortgage payment? Will you sell the deal to another investor for quick cash? Do you want to do a little touch up and sell the house for the full price? Are you going to quickly trade it for a considerably more desirable property? Create a strategy before you purchase.

There you have four steps that even a part-time investor can implement in three to four hours a week. What's the missing ingredient? Your own dedication and conviction. When you will unfailingly adhere to the strategy for a couple of months you will find yourself well on your way to financial freedom.

Milan Doshi holds regular talks on the topic of investing in property. If you want to what to invest in property, then come to his Property Intensive seminar organized by Wealth Mastery Academy that has helped opened the minds of many to the opportunities available in property investment.