Plans Change

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My husband and I are extremely gung-ho about real estate investing. We have seminars to attend all over the country, forums to go to, people to meet, properties to buy, and...well, you can imagine all the other things we really want to do right now. I will say this, real estate investing is something to really learn about and prepare for before you dive in. You can fail and fall pretty hard in this business, I see it every day while doing my research: owner needs to sell, multiple properties foreclosed on that were owned by the same company, mis-managed properties, and the list goes on.

Nick and I really want to just dive in. We have some pretty large goals and a small time frame to achieve them in, but we are eager and ready to learn. I attended a seminar recently that basically gave me the step-by-step guide on how to find, buy, and close on a property. Having taken that seminar I wanted to run out and start buying, in fact, we were encouraged to; but I knew there were still things I needed to do.

Originally I had seminars scheduled about every 2 weeks in different cities for the next 3 months. I wanted to run out, learn, and apply. Since then, I have learned another valuable lesson; you need to walk before you leap. My real estate coach has been walking me and Nick through the different things we need to do before we jump out into the market. For example: we need to set up our current finances and come up with a debt elimination plan, we need to reschedule our time so we can learn more, we need to set up our real estate team, we need to do market research, we need to go over our funding options, we need to network and get a pool of investors going, and...you get the idea. It's like our coach said, if you are going to build a house you don't just run out and start pouring the foundation, you need to do a lot of planning first.

As a result of this small lesson I changed my plans. Now I plan to attend a seminar every 4-6 weeks to allow myself time to actually apply what was learned in that seminar before moving onto the next one. This way is much more beneficial since I will retain more information once I give myself time to put it into practice. Once I've mastered many different real estate strategies I can dovetail a lot better (dovetailing is when you use more than once strategy in any given real estate deal such as: buy wholesale, get creative financing, rehab the property, then lease option it out =4 strategies).

So, Nick and I won't be running out to purchase multi-million dollar apartment buildings right away like we really want to, but we will get started on the right foot and have a sturdy foundation to build on. Once we do get everything in order, watch out world, we're going to invest like crazy!

Marketing is My Business

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It may not seem like marketing is your business when you're a real estate investor, or it may be the last thing you think of, but it's true. When you are a real estate investor, marketing IS your business. Let's look at it like this. If your business structure was an target sheet, real estate would be your bulls eye. Real estate is your goal, your core, the thing you are aiming for, but how are you going to get there? Especially if your just starting out in the business. Through marketing, of course.

Every successful company spends millions of dollars in advertising campaigns each year. Nike, Wal-Mart, Coke, McDonald's, and the list could go on. Marketing is the lifeblood of each of these companies. Without it, it's safe to say that they would most likely parish. Marketing is what informs people about what they're doing and what their deals are. Marketing is what brings the people in by the millions, and keep those companies making large sums of money.

So, why would a real estate investor need to use marketing? Simple. As a real estate investor we also need to bring people to us, whether it be buyers, sellers, renters, or other investors. We need to bring people to us, so we can help them and make money in the process. Take, for example, a simple add in a newspaper, on a sign in front of a yard, posted online that you may have seen before, "We buy houses! Cash or terms! Give us a call xxx-xxxx." It's simple, but think of it...as an investor, you no longer need to go out and look for homes to buy or motivated sellers to help out...they are going to call you! When they come to you, you save time, when you save time, you save money and can make more money by working on more deals. Get it?

That's one way to look at marketing as an investor's lifeblood. Now how about something as simple as a business card. Hand them out to everyone you know. When you meet someone new, give them a business card. When you're at a store leave behind a business card. When someone looks at your card and reads "Real Estate Investor" they just might be interested in what you do, and just might have a house they're trying to get rid or, or know someone who needs to sell but can't find a buyer, or they might have a piece of land they don't want, OR they just might have some money to invest and want to do it with you. It happens every day. Hand out a card, make a contact, and create new business.

As a real estate investor what happens when people start COMING TO YOU to sell, buy, rent, or invest with? Simply put, you make more money. What happens if you don't set up your marketing to bring people to you? You don't meet as many people, don't make as many deals, and DON'T make as much money. Sounds good to me!

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It's a Team Effort

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Investing in real estate is a team sport. You can't be expected to know every aspect of the business; there's just too much to know and you will end up wasting precious time on things other people can do for you or with you while you continue to look for other properties and move on to the next deal. Here is a short list of some of the people you will need to be on your team:


Your Business Team:

• Attorney who specializes in business and real estate law. He will help you set up your business and keep it in accordance with the law.
• Accountant who can help you with personal and business financial situations, and who also knows the in's and out's of real estate tax laws.

The Property Search Team:

• Real Estate Broker/Agent will help you understand the market you wish to invest in and bring the properties that will profit to you.
• Property Manager to asses multifamily properties you wish to invest in from a management standpoint. Also need a good company to manage your property once you buy it (you don't want to do it all yourself, takes too much time

The Offer Team:

• Attorney will review contracts and make sure they are legally binding.
• Lender/Mortgage Broker who is familiar with property investing (they may even provide you with good leads on other properties).
• Investors can bring in extra sources of capital for investments
• Contractor/Rehab specialist is good for property walk-throughs. They will help you determine the cost of minor & major repairs.

Other Team Members:

• Appraiser who specializes both in your market and the types of properties you target. They not only help determine value of a property before you buy but can project value for after you buy (fix, improve management, etc.)
• Architects are for when you need more than just cosmetic repairs, but major reno's.
• Insurance Agents. Every property needs insurance, and you need the best deal. Every year or two you should also get new bids on insurance to see if you can save.
• Property tax consultants are great. Tax laws can be too confusing, get professional help.
• Income tax consultants also help maximize tax advantages in properties.
• Estate Planners help you shelter and dispose of assets in case of illness or death. Good for when you have a substantial amount of properties.
• Environmental Company/industrial hygienist. Good if you suspect mold or asbestos, or any other environmental hazard on a property.
• Surveyor to help with boundary lines, elevations, etc.
• Structural Engineer in case improvements affect the structural integrity of a property.

Keep in mind that you don't need all these people at once. You can slowly add them as you need them. The people you must begin with though, are your attorney, accountant, real estate professional, and mortgage broker. Also remember that all of these people can help generate leads to other properties, investors, contacts, etc. If you plan to invest in more than one location, like me, you will need a team for each location.

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