Today I wanted to cover some Real Estate Investing 101 material that I think a lot of people need a refresher on.
Most of these things are fairly “entry-level” in nature, and most of us probably already understand and agree with them… but for one reason or another, these concepts tend to get lost in the shuffle of our daily lives and people break these rules all the time (including me, believe it or not).
Whenever human emotion comes into play, a lot of people start doing some really dumb things (after all – emotions have never been the best decision maker). None of us are immune to it, so as a way to combat this kind of behavior, I thought it would be wise to establish some ground rules.
As we dive in, I want you to ask yourself – do you agree with this stuff? If so – are you actually following these principles? [click to continue…]
Vivid images linger in the mind for several days and influence the decisions made by real estate buyers. Wherever the buyers go, the photos remain etched in their minds and continue to excite their feelings and aspirations. In meticulously taken real estate photos, the best of the property comes to light. Therefore, good photos help real estate investors capture the attention of their target buyers and sell their homes quickly. On the contrary, property owners who cannot display the best images of their homes will have no inquiries (and no clients coming to view their property). [click to continue…]
A lot of new real estate investors get VERY excited when they realize how powerful a direct mail campaign can be.
It’s true – finding great deals can be exponentially easier once you start communicating with the right people in the right way (and in large enough numbers).
When most proactive investors figure this out – they tend to spring into action and start sending mail all over the place in a whirlwind of excitement (I’ve seen it happen time and time again). It’s great to see a beginner being proactive like this, but at the same time – it’s very easy to let the cart get ahead of the horse.
When you’re putting together your first direct mail campaign – there is one thing you NEED to have nailed down before you drop those postcards in the mail.
When the Calls Start Coming In…
The first time I sent out a direct mail campaign – I actually got kind of freaked out when the first person called me (even though they were doing exactly what I asked them to do). A flurry of thoughts went through my mind… [click to continue…]
By Dan Miller, Co-Founder, Fundrise
As the REtipster audience knows, real estate can be an extremely lucrative investment. Since the early 90s, private equity investment in real estate has grown to more than $100 billion.
But, the majority of these investments are limited to institutional investors or investors who have the capital, energy, and time to acquire and manage it themselves. The reality is that as an individual, it’s easier to invest in a company abroad than to invest in a property across the street. [click to continue…]
As real estate investors – a lot of us have this pre-conceived bias towards buying real estate rather than renting it. We see everything through the lens of investment, cash flow, appreciation, etc. (as if these things are somehow “guaranteed” if you buy a property instead of renting it).
I had this bias back in 2006 when I was fresh out of college and determined to become a real estate investor. I bought my first house at the height of what turned out to be a massive real estate bubble (I figured real estate was a bullet-proof investment). I ended up dumping $20K of improvements into the house and selling it 3 years later for a collective loss of over $30K (and I was actually relieved I didn’t lose more). I got suckered into the erroneous belief that buying is always better than renting and I certainly paid the price for my error. [click to continue…]