Real Estate Investing: What works – What Doesn’t work

 Investing in well built properties that are able to generate positive cash flow with current rental rates

• Becoming knowledgeable about a sector or sectors or geographical area (s) and limiting your investment to those sectors or areas.

  
  

• Developing a track record of successful investments and leveraging your track record by syndications or creating an investment fund.

  
  

• Judicious use of leverage (debt) when the property will still cash flow positive after debt service; when there’s enough equity left in the property to refinance if advantageous, and when sufficient reserves are held to cover vacancies, recessions, and unexpected repairs.

  
  

• Understanding that SPECULATIVE investments should be only a PORTION of your total portfolio, and should only be money you can afford to lose.

And what DOESN’T work

• Investing in sectors you know nothing about - even if you think your “partner” has expertise.

• Paying $40,000 for “mentorship’s” which teach you nothing about real estate principles, real estate finance, or real estate law.

• Having no experience, capital or expertise and thinking your going to be successful setting up a “wholesaling” business.

• Chasing the latest “hot” real estate market, trend or location to invest in.

• Investing 100% of your liquid assets as a down payment and having no reserves to carry you through the rough patches.

• Expecting other people to solve your problems.

• Expecting inexpensive (cheap) property management to be competent.

• Expecting brokers to inform you of the best purchase opportunities when you have no proof of funds, or pre qualification for funding.