The real estate investing business can give you great financial freedom but along with that is the risk that you are going to face when you enter into this kind of business. Just like any other business, real estate investing requires a clear vision coupled with good entrepreneurial skills to be successful in such a venture.
Donald Trump-The Image Of Success In Real Estate Investing
A true icon of the real estate investing business, Donald Trump has inspired a lot of people to take a shot and get it into the real estate business. With the success that he has in real estate investing, he lives by these same principles that cover all types of real estate investment.
Before you go and set out on negotiations with potential investors, you should be confident about the real estate investment that you are going to pursue. If you are not convinced about the investment, those who will be a part of the undertaking will not be able to share with your viewpoint. One of the successful real property investments that Trump pursued was the Grand Hyatt, which is now one of the most beautiful landmarks in New York, when before it was rebuilt, was just a dilapidated old hotel!
When closing a deal, see to it that you actively involve each person who has a part on the project. Remember that you are in partnership with the seller, inspector, broker and the lender. Keep open communication with them so that everything in the transaction will run smoothly and eventually arrive at a deal that will be beneficial to all parties. It is also important to keep communication lines open so that misconceptions will be eliminated.
Finally, since the real estate investing business entails dealings with many people do not burn your bridges. Through an effective means of networking you will keep your contacts. If possible, remind them that you are interested in more projects, send them greeting cards, messages, gifts or call them. See to it that they understand that you are interested as much as they are on forthcoming projects.
Robert Allen-The Advantages Of Real Estate Investing
For Robert Allen, the business of real estate investing offers a number of advantages to the investor. These advantages are discussed in his book known as The One Minute Millionaire. According to him, the advantages of this business include the following.
Getting more involved in the success of the business. There are some investors who are fond of putting in their money in mutual funds, stocks, bonds and the like. Investing in these kinds of financial instruments do not require much work and business activity since you will only be waiting for gains from the investment such as dividends, interest receivables and other kinds of passive income. However, when you engage into investing in real estate, you should be very involved in the management of your investment properties especially pertaining to the improvements and renovations that should be made to your properties. Compared to just investing your money in financial instruments, real estate investing is indeed a more fulfilling experience.
When you engage in real estate investing, you will be able to get tax benefits like being able to make the most of out of the deductions that the government provides for businesses of this type, especially those related to the interest paid on these investment properties.
The rate of return in the real estate investing business is similar to the behavior of the rate of return in other investments, as it is fluctuating. However, unlike other kinds of investment, it has a more stable rate of return in the long run and as a bonus, the value of your property continues to appreciate.
Robert Allen’s book helps a lot of investors make the most of their financial plans. It helps them learn about different strategies to be successful in the investments they chose to put their savings into especially with regards to real estate investing.