Golden Principles of Property Investment
Real Estate November 8th, 2010Whether you are a newbie or an experienced investor you can never afford to leave the basic principles of real estate investing.
You can use different strategies in real estate to grow your portfolio . The options can involve investing in warehouses, retial shops, bulk retial, shopping centers, apartment buildings, single family homes or motels, taverns etc . Within the property types you can become an expert in lease options, flipping houses, buying mortgagee sales or international investing . But these can never supersede the fundamental principles.
You can use different strategies or methodologies but the fundamentals of real estate investment never change .
In my experience professional investors at times tend to become over confident and flout the basic principles . Unfortunately this results in their down fall . It is in your interest to understand and apply these basic principles to your advantage .
Basic Principles Real Estate Investing :
* You will become rich if you buy and hold property for as long as possible
* Always invest in high cash flow properties. They will give you peace of mind when the markets are down.
* Do the Math’s – Investing is numbers
* Location is the key to your success
* Buy properties only from motivated vendors
* UseOther Peoples Money (OPM) to fund your investment property
* Make Use of the Property Cycle to quicken your growth
* Negotiate Everything
* Knowledge of Real Estate Investing is the Key to Success
* Take Action
A brilliant investment property is never seen with the eyes it is always seen by the mind . Thousands of people will pass a property and will see no any value in it . It takes an investors mind to spot a great property . Knowledge of property investing holds the key to success .
It is fear that keeps people away from buying property . Fear burns in the fire of knowledge . However, no one can reach a state of complete knowledge to overcome fear . You have to act in good faith and intelligence. Inaction will keep you tied to poverty . Once you start taking action your experience and self-assurance in property investing will gain ground.
Action is always superior to inaction . When I started out I had no knowledge of real estate investing . My first mentor was a property broker . He pushed me hard into buying my first property probably because he wanted to make a commission . I am glad he did that to me because it changed my financial future . I have never looked back since. For the first few years I was a ‘street smart’ property investor . I learnt through trial and error .
Apply these basic principles to the the extent you can. Experience will follow . Think big but start small. A few small steps will change the out come of your life .
Knowledge and application of these principles will be the key to your success in real estate investing .
My recommendation is that you read the ‘Principlesof Real Estate Investing‘ in depth to get better understanding of the subject.
Watch this short video for one great tip on investing
The author of the article specializes in Auckland Commercial Real Estate
