How to Make Money In Real Estate – 7 Critical Keys

#1 Know that you can do it too!

Have you ever stopped to think about who owns all the downtown buildings? Or how about all those apartment complexes you see everywhere? When you see a “For Rent” Sign on a house do you wonder how many more rental houses that guy owns?

Well, the point to these questions is to say that you can be one of the millions of people that own rental real estate too! That actually comes as a surprise to some people and that is why the title above says KNOW that you can do it too! You can and you should. Let me repeat that. You can and you should.

There are plenty of excuses people use to say; “well, I can’t do that” and as the saying goes – “You either can or you can’t, either way you are right!” Here’s what I want you to do. Just below write out the first few “I can’t” reasons. I’ll even get you started…

What if you could turn it around so there were no excuses, no more “I can’t”? Wouldn’t that allow you to achieve your goal of financial freedom? Wouldn’t that allow you to create the result of buying properties below market value so you could make money time after time?

What we intend to do is what we will ultimately get. The more clear the intention, the better chance we will do the things necessary to get it. For instance, if you say; “I want to invest in real estate”, that intention is very vague and not easily acted upon. However if you can describe what kind of real estate you want it becomes much clearer and much more likely to happen.

As an example, if you say; “I want to own a rental duplex in the hospital district with each side being 3 bedrooms and 2 baths and it needs to cash flow at least $150 per side and I don’t want to pay more than $10,000 down and would love owner financing”, you are much more likely to find what you are looking for.

Is it easier to believe that you can own a duplex in the hospital district or that someday you want to be rich? Your mind will help you be successful if you truly believe and articulate what you want in detail.

#2 Begin with the end in mind

In Stephen Covey’s book “The Seven Habits of Highly Effective People”, habit number one is “Be Proactive”. You’re being proactive just by reading this article. You’re taking action. Habit number 2 is “Begin with the end in mind”. Set a goal. Know what you want and plan how to get there.

So many would be investors don’t have a road map to where they want to end up so they don’t end up anywhere. THIS IS A CRITICAL STEP!!

There is a major difference between investing in real estate and being a real estate investor. By inheriting a property or buying a house that pays you $2 per month, you are an owner of an investment property. (Many people actually loose money each month because they didn’t buy right but that is another story). Technically, they are invested in real estate.

But they are not real estate investors. They don’t have a plan of accumulating wealth with strategies and tactics that get them there over time. (Sorry, this is not a get rich quick opportunity…lottery tickets sold elsewhere).

A plan should have realistic goals. For instance, if your desire is to retire wealthy, what do you mean by “retire wealthy”. Be very specific. I have one client that defines it as “I want my wife to be able to stay home and I don’t want to have to work. I need about $6,000 to pay my bills and I want to be able to do some traveling so I want $10,000 per month”

You should have a long term goal of 10 – 15 years or more; medium term goals in the 5 – 10 year time horizon and shorter term goals in the 2 – 5 year range and immediate goals that define what you are going to do this year. Let’s take a look at a sample of this…

A 52 yr. old working male with a wife that works as a teacher might start with basic goals as follows:

10 year goal

retire at 62 with no reduction in lifestyle [so they need to replace $82,000/year income ($6,834 per month) which might take 10-12 free and clear houses generating cash flow in the $500 – $600/month range]

5 year goal

Own 15 housing units (could be apartment or duplex generating at least $150/unit in free cash flow ($2,250) to retire my wife to be looking for real estate full time).

Own Real Estate in my self Directed IRA – grows tax deferred or even tax free if using a ROTH

2 year goal

Be buying 3-4 housing units/year (one per quarter? in appreciating areas).


Get in depth education from local investors doing deals in my area.

Join the local REIA – Real Estate Investors Association.

Understand my financial situation – set a household budget, savings & Investment plan, income statement and balance sheet (which you will need for loans anyway).

Develop a buying criteria – (what do you want to buy, where, how much, what condition, how big, etc).

Find an investor friendly real estate agent (to help me find property that fits my criteria).

NOTE: this is just a summary of goals while a real plan is more in depth & detailed.

#3 Model success –

Another way to say this is “don’t recreate the wheel”. If 8,000,000 people have already done something and hundreds of thousands are currently doing it too, DON’T TRY TO MAKE IT UP AS YOU GO!

There are many real estate investors that are happy to share their experience over a cup of coffee or lunch (you buy of course). The investors I have been privileged to know are a caring, sharing group of people that want to give back and help people. That’s how I got interested.

Now let’s talk specifics. If you were going to go into the hamburger business would your chance of success be better if you were starting your own burger place or buying into a big name franchise?

Assuming all things were equal, you wouldn’t have to develop all the systems and training for your own business if you went the franchise way. You would have the expertise of people that have been there and made mistakes and refined their systems and processes to improve the business. You would have the help of other franchise owners in your area to let help you get started and to talk with about local business trends and situations and on and on….

The point of this is to find out what other successful people are doing and model them. Don’t recreate the wheel. If your advertising isn’t working to generate leads, find someone that has a “lead generation machine” and copy what they are doing. (Please don’t infringe on copyrights, etc). But if they have a web page driving lead traffic, you should consider it. If they are putting signs out, you should consider it. If they are doing direct mail, you might give it a try. I think you get the point.

Look at every process as you find, fund, fix and flip real estate and break down the components to business processes and then put a system around the process to help you make it more efficient and more manageable.

#4 Focus, Focus, Focus

Lack of focus is probably the single biggest cause of new investor failure that I have seen. Every month people are buying new books and tapes from the circuit guru that flies into town for the REIA meeting or some big name putting on their own event. I’m not saying that you shouldn’t expose yourself to different techniques to buying and/or selling property but most people have a “flavor of the month” investing technique that they get excited about and don’t ever focus creating a business (being a real estate investor).

Look at your resources, network of people and resources, time you have and level of difficulty and commitment to do a specific type of transaction. You should pick one that considers your time and resources and then get really good at it.

#5 Take action

You don’t have to be good to begin, but you have to begin to be good. This is the shortest section here. TAKE ACTION! Do something. One of my bible study teachers used to say to me after I asked so many questions was; “Larry, Just get a mitt and get into the game!” Translation for real estate investors….”Just get out there and make offers”. You can’t make money until you get a contract that is signed by the seller, right?

#6 Build a team of experts

You’ll want to have a team of experts on your site and should have a title attorney, CPA, property manager, appraiser, and contractor all in place.

#7 Make offers!

You can learn a lot and not make money. You can plan a lot and not make money. You can network with hundreds of people and not make money. You can attend meeting after meeting and conference call after conference call and not make money.

Start making offers and start making some money. How many? How about 1 a day to start and then get up to 50-100 per month? Believe it or not, at some point someone will accept one of your offers and you’ll be “off to the races”.

Written by Larry J. Haines, Managing Partner, Road Home Builders, LLC – Investing in the Gulf Coast and rebuilding part of America’s Heritage; The City of New Orleans. 877-777-8440 or For more information on real estate investing on the Gulf Coast, please visit []

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Real Estate Investing in Rehabs

Real estate investing in rehabs is a field of investment that is excellent for skilled and experienced investors and is not a good option for beginners. Real estate investors looking to rehab a house need to evaluate the site as well as the structural pattern of the house.

For the smart and proficient real estate investors, rehab real estate investing is one of the finest techniques that can bestow in profits beyond their imagination. Several real estate investors utilize real estate investing rehabs to figure their fortunes.

Such investors are constantly hunting for run down, overlooked, and unattractive estates for very minor margins. Further, they fix the estate, preserving the costs of repair as low as possible, repaint the estate, provide a renovation, and execute to sell the estate at an awesome price for huge marginal profits.

The evaluation of the site to rehab is done with thorough consideration to the type of vicinity in which the estate is located, shopping amenities as well as with the accessibility of transportation facilities in the vicinity.

Real estate investors need to possess an excellent concept of the local realty hoard, the present land value, with full experience in rehabbing, to review the requirement for fixing the estate. Further, investors are also required to have the capability to calculate the cost of rehabbing the estate, with the decision for rehabbing the estate by their own, or lending the job to someone else. Investors are advised to deem over every feature, for attempting to acquire the house at a greater profit, and work things out with very less cost price while trying to sell it for its present market value, or higher than that.

Further, the investors are also required to possess a fine concept about the latest patterns in colors and interior furnishings expenses as per the planned finances. This will aid in making the rehabbed house attractive to the promising buyers. But, the investors are advised to carry out the rehab procedure on their own, as this reduces the expense to almost 50% than what a contractor will charge for the same. It is an excellent situation, if the investor is trained proficiently to rehab the houses, as that investor is bound to have an apparent idea of the chores that are required to be conducted, along with the method to cover up the process at the lowest expense possible.

There are certain real estate investors who make prime money by investing in rehabbing commercial real estates, while others are professionals in rehabbing outdated houses, making big profits, opting for the estates located close to a lake or pond. There are certain other investors who focus on rehabbing condos in places where there is a comprehensive demand for condos.

Certain real estate investors rehab and sell off their estates at an excellent profit, and yet others rehab, refinance and lease the estate to acquire fine returns on those investments. For instance, there are certain investors who buy the homes for say $100,000, and rehab it for say $30,000 and sell it for around $200,000. Hence, the sky is the limit for skilled real estate investors investing in rehabs.

Charles W. Moore, a U.S. Army Veteran began Real Estate Investing in 2001. He’s a Successful Investor, and Author of, “Million Dollar Rent To Own Real Estate Secrets Exposed.” Get his Free Report on Rent To Own Real Estate Investing [] at: [] – Learn Real Estate Investing, Stocks Markets and Internet Marketing, visit:

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Simple Guide To Buying Real Estate In A Buyers Market

Due to the growing numbers of real estate foreclosures and bank owned real estate inventory, we are in a buyers market. This is when real estate is considered easier to buy at a good price than to sell for a profit. Even in a buyers market real estate is one of the best initial investments to be included as part of your plan to create wealth or achieve financial independence.

Creative financing features like “lease with option to buy” make it possible for those with a poor credit score to invest in real estate along with those who are credit worthy. When new home sales plummet and when professionals are laid off look for real estate foreclosures to flood the market. The principals of supply and demand determine pricing real estate is no exception. There is a tremendous supply of housing that demand has not caught up with as of yet.

New home sales are at their lowest levels in almost a decade. Many real estate buyers who did not truly qualify for a mortgage two years ago are now in foreclosure. Certain economic conditions like cheap labor in global economy have resulted in a loss of middle class jobs in the US. This has affected Mr. & Mrs. Homebuyer with lower wages and corporate downsizing.

Depending on the type of mortgage secured by homeowners an adjustable rate mortgage for example the mortgage payments could almost double. Homeowners with higher than expected mortgage payments have found themselves unable to pay the lender and their homes have gone into foreclosure.

A high number of real estate foreclosures create a credit crunch. When it’s harder to get credit, fewer mortgages are created fewer homes are sold. Even with the current problems in the housing market, real estate remains the best initial investment. With home sales slowing the major consideration is that consumers will stop buying things other than homes, like cars and appliances. Retail stocks would be the sector to watch in forecasting economic health.

Unemployment figures affect the market value and health in the real estate industry. When factory jobs are replaced by service jobs that pay less than half of the salary of the factory jobs, the real estate industry is adversely affected. People are not able to qualify for real estate at market value because their jobs are paying less than five years ago.

Look for real estate prices to fluctuate with corporate downsizing that causes mid management and professionals to loose their jobs. The health and profitability of the real estate market depends on the total economy, which responds to supply and demand, cause and effect.

Even when mortgage companies are closing their doors, real estate is still the best initial investment and financial plan to create personal wealth and financial independence. Smaller multi unit dwellings that have been returned to the lender represent excellent investment opportunities. Smaller homes for first time real estate buyers can turn into income property producing passive income in just a few years. This scenario based on adding a rental unit onto the small starter home or even a second story that can be used to increase the market value of the property.

“For Sale By Owner” when the owner will also function as the mortgage lender is a way for would be real estate investors to get started. The key to successful real estate investing is being able to sell before the price drops and buy after the price drops. Being able to determine when the price of real estate will go down or appreciate in value will contribute to the success of any real estate investor.

Take care of your credit, save your money and don’t invest money that you cannot afford to loose.

It’s important to not fall behind in any mortgage payments and it’s also important to not have so much going on that you crash and burn because you the investor can’t make your mortgage payments. Protecting your credit, investments assets are still not enough to protect you against living beyond your means. Consult your business plan and keep an eye on your cash on hand in the event that you will have to hold onto real estate longer than first anticipated.

Richard Rizza is a Home Business Development Expert and Professional Marketing Consultant. He is in the top income earner in the Home Business industry. To learn insider secrets and powerful marketing strategies from the pros to help you explode your home business empire, sign up for Richard’s FREE cutting edge Ezine go to and click on the link

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Free Real Estate Mentoring – Can You Duplicate Their Success?

Real estate mentoring is a new buzzword out there in the marketplace today. If you want to get mentored in real estate investing then you want to ask the real estate experts. It makes sense to find and get mentored in real estate investing not only by successful real estate experts, but even beyond that-find those who themselves have achieved that status and also helped mentor others to millionaire status with real estate investing as well.

You want to ask the real estate experts who are also the mentors of millionaires. That’s who you want to learn from, but it’s not always easy to find them (or give them a reason to mentor you) to get free real estate mentoring.

Why is that important to keep in mind when thinking about real estate mentoring?

Well, would you take business advice from someone who has never succeeded in business? Would you ask a nun about childbirth? Would you ask a bank manager about running a business? Many do, unfortunately.

There are a lot of never-took-a-risk academics and “gurus” out there who make money selling seminars, supposed solutions and opinions. They make their money from selling information (some good, some decidedly NOT) and motivation. Whether they ever used or did what they are selling is sometimes questionable.

But let’s pretend that they did.

Let’s say that they used what they are selling and became millionaires before they ever put it down on paper, recorded an audio program, or presented a seminar.

Can they then be qualified to engage in real estate mentoring?

Can they help YOU get mentored in real estate investing?

Maybe, maybe not.

Personally, I’d be interested very much in what THEY achieved, but I’d be even MORE interested in what those they mentored achieved.

So they are real estate experts, which should be priority number one.

Are they also the mentors of millionaires in real estate investing?

Just because someone can do a thing, doesn’t mean they can articulate in a simple manner how you too can do the same thing. Just because one person can take actions and receive a result, doesn’t mean they can necessarily teach you to do it. Just because a man can make a million bucks, doesn’t mean he can explain to you how he thinks and how he makes decisions.

If you want to get mentored in real estate investing, understand the mentoring relationship. Mentoring is all about finding what works and being able to clearly articulate and teach it to someone who could not achieve on their own what they achieve with what you teach them.

That’s why, if you want to be a millionaire, and you believe that the right real estate mentoring relationship can help you there, you need to find and ask the real estate experts who have also mentored millionaires- already.

Danny Welsh invites you to Get access to ask the real estate experts with America’s #1 Real Estate Network™ today! Attend our next webinar free with some of the nation’s leading real estate experts. Or learn more about Free Real Estate Mentoring when you use the real estate investor search engine

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Resort Real Estate – Why Its Prices Behave Differently

Luxury Resort Real Estate

What is resort real estate? It can be defined as property located in a community that thrives on tourism and where ownership of second or third homes make up a substantial percentage of the overall home ownership.

Aspen real estate is a prime example of a luxury resort market. Aspen is home to four exceptional ski mountains with a lively winter tourism industry and summers offer mild temperatures to enjoy the plentiful outdoors. The majority of homes owned in the Aspen or Snowmass market are second homes. The typical vacation home in the Roaring Fork Valley is utilized less than 30 days per year on average.

Average single-family homes in Aspen start at about $5 million, Snowmass homes come in a little lower at around $3.5 million on average. So it is clear that real estate in this mountain resort falls into the luxury homes category. But the Colorado Mountains and its ski resort towns like Vail, Beaver Creek and Breckenridge are by no means the only resorts with a luxury designation. Resort towns span coast to coast. From the Florida Keys or the Carolina cost line to the mountains of Utah and California.

One thing all these resorts have in common is that their real estate markets are not following the same rules as suburbia.

Real Estate Finances

1) People that can afford to buy second homes must by definition be somewhat successful to get to that stage. It seems therefore less likely that they would fall for obscure financing products.

2) Lending criteria on second homes are and have been tighter than for primary residences. It is not uncommon for lenders to ask 20% down on these types of deals. Therefore it is harder to get upside down on your mortgage.

3) In luxury resorts like Aspen or Snowmass 60%-70% of all real estate transactions are cash transactions. No financing involved. Negative cash flow is therefore not an issue in these situations.

4) Rental income from properties not used for most of the year can soften the negative cash flow if a mortgage is involved.

Real Estate Desirability and Liquidity

1) Resorts by definition are something special. They have something that people desire. This could be mountains, lakes, the ocean, a special climate or island setting. Really anything, but it must be special.

2) Resort real estate is a luxury good. It is not essential to own. This in turn makes it easier for people to divest of luxury real estate holdings. Properties owned in any of the desirable luxury destinations are a more liquid asset. The security that properties are more fungible helps property owners divest of them more quickly if need be.

3) In most cases resorts offer limited availability. As with most things desirable they are not available in unlimited quantities. There is only so much land in a mountain valley and there is only that much beachfront property, there are only so many skiable mountains, you get the drift.

Overall it can be said that resort second homes will be the first asset that will be sold when people are in financial distress. On the other hand it is less likely that owners of resort property like Aspen real estate would have overextended themselves in the first place. This combined with the tighter lending criteria for second homes makes it less likely that the general mortgage troubles spell over to the second home market. As long as the economy only experiences a moderate downturn the luxury real estate segment might actually profit. It is not uncommon to find a re-allocation of wealth from stocks and bonds into real estate in times of uncertainties. Therefore the top end of the market will weather the storms much better than most people expect.

Toby Munk graduated with a degree in Business Administration with a major in accounting from FH Rosenheim, Germany. In addition he holds a MBA in finance from Hofstra University, Long Island. After joining Aspen Sotheby’s International Realty he became a top producer in his first full year in real estate.

Aspen Real Estate

Snowmass Real Estate

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