| Real estate investing tips tend to be a bit vague, like | | | | you want to get out of this?" It is rare that |
| "invest in the right location," or "make sure the | | | | someone is offended by this simple question, and it |
| numbers work." Actually, tips like these are important | | | | saves you from wasting valuable time talking about |
| principles to remember. However, since they have | | | | things that don't interest him or her. Once you get a |
| been well represented in other articles, I want to | | | | clear answer, you can decide if you can give them |
| share a few more specific tips with you.1. Listen to | | | | what they want, and still get what you need.5. |
| the market. The cabinet guy looked to me for a | | | | Invest safely. Investing isn't gambling. There is always |
| decision. I realized that I knew nothing at all about | | | | risk, but the difference is that the odds are in your |
| which cabinets people like, so I asked him which ones | | | | favor. If not, you are gambling. This why you |
| others were choosing, and he pointed to one that | | | | shouldn't invest based on continued price increases. |
| three quarters of his last forty customers had | | | | There is no guarantee that prices will continue up at |
| chosen. That's the one I want, I told him. Why argue | | | | any particular rate. Do deals that work even if prices |
| with the market you are trying to sell to?2. Do your | | | | go nowhere, and if values go up, you're that much |
| own research. The real estate agent might show you | | | | better off.6. Run the numbers. It is about the |
| only the comparable sales that make the property | | | | numbers, and if it is income property, it's about one |
| look more valuable. Do your own research. Some | | | | number in particular: cash flow. Whatever the local |
| counties have made it easy now, with sales prices | | | | formulas are, whether gross rent multipliers or |
| online. You can also search any number of sites with | | | | capitalization rates or whatever, just be sure that |
| MLS listings, just to get an idea about the asking | | | | after every last expense you'll have cash flow from |
| prices of other nearby properties.3. Partner carefully. | | | | the very first month.Rules, formulas and real estate |
| When you do a deal with partners, be the money or | | | | tips are really just guidelines. Even the rule above |
| the management, but not both. Group decisions tend | | | | about cash flow can be broken if you know that |
| not to work well in real estate, and will cause you | | | | rents can be raised soon, for example. You have to |
| much stress. Once you decide on and agree to a | | | | use common sense and learn from experience, and |
| plan, step back if you are investing the capital, and | | | | you can't replace good analysis with rules, formulas |
| let your partner do his thing. Of course, step up and | | | | and real estate tips.Steve Gillman has invested in real |
| take control if you are managing the project.4. | | | | estate for years. |
| Negotiate openly. Just ask a seller outright, "What do | | | | |