October 3, 2010
Real Estate Investing | Real Estate Investing: Success Comes From Within Not The Property
We all have heard and know that the majority of wealth in this nation was acquired through … Real Estate. The secret of the wealthy is actually no secret at all ” they understand that purchasing properties is the key to achieving financial independence, freedom, and wealth. Because people realize this, there is an entire market of real estate investing products ranging from books to seminars to coaching programs that promise this same success and wealth. And yet ironically, the market for these products continues to thrive while the actual millionaires made from Real Estate continue to decrease. Why then do so few succeed, and what is so challenging about real estate investing?
Most people who fail in Real Estate fail because they give the excuses that they don’t have the necessary knowledge, time, or money required to achieve success.
The reality is that they lack the essential elements and attributes to be successful in anything ” desire, faith and belief, a plan and goals, daily action, commitment and determination, learning from failure, and persistence! Truthfully, you do not need money to make money, anyone who is completely committed to their goal will do whatever it takes to gain the necessary knowledge, and it is not the lack of time that is the problem ” it is the inability to prioritize and make time for their goals and dreams.
These same people also actually convince themselves that buying the product, attending the seminar, or actually having a coach and mentor will undoubtedly result in success and real estate wealth. These purchases may be a first necessary step, but unless belief, action, and persistence are also implemented, those books and products will gather dust on the shelf. These once excited first-time investors thus become just like every other beginning real estate investor who does not have the self-discipline, commitment, and determination to persist until their goal is realized.
The most challenging aspect of real estate investing is not in finding the ideal property, negotiating the right deal, obtaining the best financing, building a business and team of professionals, properly estimating the repair costs, choosing the right exit strategy, or developing the ability to sell regardless of market conditions. The hardest part is actually believing it is possible, having faith in yourself, overcoming fear, taking a risk, learning from failure, and putting forth daily action with a commitment to persist until your dream is realized.
Thus, consider for a moment the incredible real estate opportunities and conditions that our country currently faces (I am writing this in the spring of 2009). Notice that I used the word ‘opportunities’ ” and have chosen and trained myself NOT to listen to the fear and risks the media write about regarding the current real estate market. Opportunities to achieve success, accomplish our dreams, and acquire wealth always come before we are prepared and are gone before we realize it. Let’s not be the person who in five years from now looks back to 2009 and says ‘I wish I would have bought then.’
What are your ‘I wish I would have’ statements? The reality is that these principles and this truth apply not only to Real Estate, but to EVERY goal and dream in our lives. The challenge lies not in the details of doing it, the challenge is simply DOING IT! It all starts and hinges on the stage of our own minds. Will we believe in ourselves and our potential? Will we put forth the required and necessary action to achieve success (in anything)? And perhaps most importantly, will we persist, learn from failure, and never quit until our goals and dreams are realized?
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5 Comments on Real Estate Investing | Real Estate Investing: Success Comes From Within Not The Property »
May 1, 2011
Mark L @ 9:55 am:
Don't borrow to invest…you will find the interest paid will offset your gain on the investment, and worse still, if the investment loses money, you will still have the loan.
I will give you some good advice…pay attention.
You are young and that makes a big difference..Save up your money until you have $1,000, and take it to the bank and buy a no-load balanced mutual fund, Figure an amount per month that you can afford to invest and tell the bank to take this amount once a month to buy more shares of this fund,
Then start reading about investments, markets, market psychology, how changing interest rates affect markets, how current events affect markets, and anything you can learn about investing will help you understand.
This amount you invest every month won't be noticed by you (not having it to spend) after a few months…..Increase this amount when you can..if you get a raise, put the take home increase into your fund. As you learn about investing and understand your risk tolerance, branch out ito more diversification, Like a good equity fund, maybe a resource fund, but start with a balanced fund.
Over the years you will get rich following this advice, but don't start spending your fund on cars or trips…otherwise you will have to start all over again.
June 16, 2011
godged @ 4:22 am:
When I have people entertain the thought of doing FSBO, I tell them to go for it, but save my number because you are going to need it.
Despite all the means for selling houses on line, the vast majority of real estate is still being done through Realtors. The reason for that? Because it works. Most owners realize that we live in a litigious society, and this is a big investment, you aren't selling a bicycle here, this is a house. There are a ton of things that can go wrong, especially if you do not know what you are doing.
Sellers closing costs depend on area, there may be transfer taxes and a few hundred in different charges, no way to wiggle any cost saving measure into that,.
The MLS is the multiple listing service, which you have to belong to, and that is how Realtors list houses. These listings are farmed out to various websites, like Realtor.com and Trulia.
You have decide what is important to you, and if saving money is #1, try to sell it yourself.
August 9, 2011
Doctor Deth @ 11:57 pm:
use the "Other" category
September 10, 2011
satarnag @ 5:54 am:
When a property gets foreclosed on, and it's the first lien holder that is doing the foreclosing, then the second and third and fourth (etc.) will get wiped out at the foreclosure auction. What an investor will do is to buy/tie up the property from the defaulting owner and see if he can discount the first and second. The second will most likely agree to a small amount (usually 7-10 percent) because they will lose everything once the property gets foreclosed on. The first will usually accept a 20 percent hit.
Now what you quoted is that the second note holder was stating that he will own the property by buying it from the person in default and take over the first position's loan payments and make it current. Therefore, he is not interested in selling his note to the investors. The investors in that example were idiots for not controling the property first or the owner didn't want to sell. The investors were hoping to buy the second note at a discount and bid at the auction and own the property with at least 15 k equity plus whatever the homeowner had in equity.
You can buy any note by approaching the lending institution that holds the note and making an offer to buy it. You will need cash to do so.
Also, to clear up the quoted reference, you can purchase property "subject to" existing liens/loans. Taking property "subject to" means that you will take over the payments, but the old owner is still responsible for the loan(s). So if you stop paying the mortgage/trust deed, the lending institution will go after the old owner and start foreclosing on the property. Buying property "subject to" existing loans is one way where someone with no money and/or credit can get into a home and own it. The second note holder was buying the property from the defaulting owner using the "subject to" clause.
I either confused you or helped you. Either way, I just saved you hundreds of dollars in late night real estate infomercials!
E-mail me if you have any questions.
Regards
December 2, 2011
@ 6:18 am:
This review is from: Rich Dad's Advisors®: The ABC's of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Audio CD)
What I like most about the Rich Dad Advisor series is the lack of fluff and that the information is from actual experienced real estate investors like Ken McElroy. Many people who write books and/or conduct seminars have little if any in the trenches real life real estate investing experience. What makes this program different are a number of things. McElroy shows how to calculate the right price for your property. He explains how to use comps and how to avoid the wrong properties. McElroy goes into the mathematics of real estate investing more so than any other author. The ABC's of Real Estate Investing mades a great addition to Real Estate Riches. In concert, these programs will help you achieve financial freedom via real estate. ]]>