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A Buyer's Market
5 Ways to Succeed in Real-estate Investing
By Vena Jones-Cox
As the stock market continues to have its ups and downs, more and more investors are running scared. Often they turn to real estate investing, the "safe" bet for their money. Not so fast!
Sadly, most real estate investors have received little information or bad advice. They dive in and work really hard, only to lose their big investment. "Real estate investing is not a one-size-fits-all proposition," explains Vena Jones-Cox, also known as the "Reliable Real Estate Expert" (www.REGoddess.com). "So it's wise to lay a good foundation before laying down your cash." Over the years, Jones-Cox has compiled this series of steps that every real estate investor should follow:
There is no book you can read, no course you can attend, no experience you can get on your own that can come close to the education you get by hanging around with people who are already buying, managing and selling properties. The successes and failures of real-life investors teach you more – and motivate you more – than even the most complete classroom education available.
No, that doesn't mean "I want to buy properties." Buying properties is just a way to achieve your real goals: increased cash flow, retirement income, quick cash, tax advantages and so on. Setting goals for your real estate business right at the beginning lets you focus on the properties, areas, sellers and exit strategies that meet those goals.
There are only five basic exit strategies to choose from: wholesale, retail, lease/option, sell with owner financing and rent. Once you've decided what you want (see step 2), your choice of exit strategies will suddenly be very limited.
For instance, if passive income or wealth building is your goal, the wholesale and retail strategies are wrong for you. If you need quick cash to pay off consumer debt or build capital for long-term holds, renting properties is the wrong way to achieve this goal. Your strategies will be further limited by your education, personality and assets. By the time you take a close look at your goals, assets and liabilities, you should be able to find a single strategy for buying and making money from properties.