We All Want To Put A Bid On The First House We Look At

Category: Finance, Real Estate.

Do you have what it takes to succeed in rental property investing? While these are important, what s absolutely essential is having the right psychological makeup, the intangible assets to make it.

By this, I don t mean financial assets like cash and credit. Just as with any great business opportunity, real estate investing is not for everyone. You are obviously willing to make a time investment. That s because, contrary to popular get- rich- quick gospels, real estate investing requires a lot of hard work and personal sacrifice. What are the intangible assets you need to succeed in real estate? You must overcome your fears of failure as nagging negative thoughts run through your head, like: - What if I buy this house, and nobody rents, fix it up it?

Ask yourself these 10 questions. #1 Can I stomach the risks? Okay, is that a realistic worry? But the chances of never renting are slim. - What if the house generates negative cash flow? You may need to adjust the rent or be creative. How will I keep from losing my shirt? However, if you have a setback, like more repairs than you anticipated, look at the numbers. No one recommends negative cash flow, so don t go into a deal that appears to be negative from the beginning.

This is not where you want to be, but don t let the fear of this keep you from pursuing the possibility. - What happens if my tenants make two payments and walk out after trashing my property? Do some research of the probability of that happening. - Who do you know who is a landlord now? Yes, and if you, this is possible stay a landlord long enough it may happen. I was amazed to find out how many people in my church and how many of my friends parents had rental property. If you have enough properties this may eventually happen, but chances are slim it will happen on your first house. Ask them how many times they have had a renter trash the house in two months. That is why we get credit applications on prospective tenants. - What if my house catches on fire?

I would encourage you to meet your property insurance agent for breakfast or lunch and discuss details about what is covered and what is not covered. That is why we have insurance. He/ she will have some wonderful insights and might be able to hook you up with a client who could act as a mentor to you. - What if an eyesore like a gas station is built next door and devalues my property? Check to make sure there are no rezoning plans for the immediate location around your prospective property. You can do your part to reduce this risk by doing your homework. If you buy a house in a subdivision you have drastically reduced that chance. Just make sure you go into a venture with your eyes wide open and make low offers. #2 Do I have the time to devote to this?

If you can stomach the risks, you ll do fine. If you travel several days per week and have two small children at home, you may not have time to do this. This way, you re committed to spending whatever time it takes to succeed. Count the cost( in time) before you dive in. If you feel guilty about the time, you will not enjoy the work nearly as much. #3 Do I have the hunger to keep learning and growing? The more you learn about the business, the more money you ll make and the less money you ll lose. Knowledge is literally power.

Do you understand mortgages? Do you like to work with your hands? Do you like to deal with people? Do you know how to paint? Do you know how to fix a leaky faucet? Do you know how to fix a toilet? Do you know how to research problems and find a solution?

What one person sees as a dump a savvy real estate investor sees as a potential cash cow. Identify what you need to learn and then focus your time and resources on acquiring the knowledge and skills you need to overcome the deficiencies. #4 Do I possess an opportunity mentality? You need to see opportunities where others do not. When you walk into a house that literally stinks and you can immediately knock$ 10, 000 to$ 15, 000 off the asking price. The smell of opportunity is cat urine. New carpets and paint might cost$ 3, 50Cosmetic problems will turn off 99 percent of the people looking at a house. See the house as it will be when renovated. #5 Am I self- motivated?

You have to look at this house through rose- colored glasses. As motivational guru Zig Ziglar puts it: "If you do the things you ought to do when you ought to do them, a day will come when you do the things you want to do when you want to do them. " You are the boss on this project. You must be your own motivation. #6 Do I have access to financial reserves? No one is going to watch over your shoulder and encourage you. Do you have a savings account, an equity line of credit on your current home, or credit cards for repairs, and so forth, advertising expenses? What if you do the work but Bob supplies the money?

Don t forget to look beyond your finances to other people s money. Having the money is different from having access to the money. Who can I call on to help me? You just need the access! #7 Do I have access to partners? Two people going in together on their first deal might have a calming effect on both. I consider my wife a partner, and she was my sounding board on many occasions. #8 Am I coachable?

They might team up for financial reasons or for simple collaboration. Am I willing to learn, and forgive myself, change my habits for mistakes? As for mistakes, they are only truly mistakes when you don t learn from them. I hope you have already begun to learn from this book. You will read about several changes I would have made to my first success story. I m still proud of myself for doing the first deal.

I m not mad at myself for making mistakes- -I didn t know any better- -and next time there will be fewer regrets. To get the first deal behind you is a wonderful feeling. What if my family and friends think I ve lost my mind- -will I be able to stand up to their ridicule? The second rental property will be so much easier- -and I bet I make some mistakes there, too! #9 Am I able to withstand criticism? Let me make a suggestion here. Currently my father- in- law does not know about our rental house.

If you know family members or friends will not be supportive, then don t tell them. As a child of the Depression, he would have lost sleep for weeks worrying about our debt. I didn t need company. That was my job! What good would come from telling him? I had much more support than I expected. #10 Am I sophisticated and wary?

Chances are you will find your friends and family to be more supportive than you expected. Will I see at least 10 houses before I put an offer on a house? Will I resist the temptation to buy something I really don t feel comfortable with? We all want to put a bid on the first house we look at. Know the difference between nerves and that old gut feeling. Whether you re looking to become a big- time real estate mogul or simply to earn part- time, this book will, supplemental income show you how to take the first critical steps to make it happen. If you answered" yes" to each of these questions about yourself, you stand a great chance for success.

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