TIPS FOR THE REAL ESTATE INVESTOR

(Management of: Finances, People, and Assets)

Quote:  No pessimists ever discovered the secrets of the stars, or salied to an uncharted land, or opened a new heaven to the human spirit - Hellen Keller

General Tips for Success:

You should have enthusiasm, energy, a desire to accept new challenges, a desire to explore new horizones, and the abilitiy to think "outside the box".  You need to have a desire to continue to learn new skills and techniques for doing your business.  You need to be financially savy with the ability to save and manage your money. You should be knowledgable about interpersonal skills and basic business techniques and methods. Inspired thought is always creative! 

FINANCES:

1) Establish a Business Mission and Goals. You cannot achieve what you want without defining your goals. Develop your business according to those goals (different property types support different life goals)

2) Purchase, Manage, and Sell Properties according to your Mission and Goals

3) Operate from you pocketbook, not your heart. You are running a business!

4) Learn to manage your money and establish strong savings habits

5) Establish relationships with a set of financial institutions, officers, and real estate people who are knowledgeable about investment property; review multiple options before purchasing or selling properties

6) Review your Financial Asset Status Regularly. You cannot make strong business decisions without knowing your financial asset position at any point.

7) Set aside Buffer funds for at least these reasons: 1) back-up position 2) emergencies, and 2) capturing great opportunities. You cannot afford to be financially empty-handed when opportunities knock.

8) Stay positive. Business and economic cycles are up and down. Take a measured approach to the economy at any point.

9) Make every deal a "win-win" situation. Never burn your bridges. Your contacts are a pool of people who have needs too. Truly, what you give, will come back to you multi- fold!  It's a matter of ethics

10) Learn continuously through mentors, classes, and readings. .Education yourself on new investment strategies. A strong business and financial acumen is essent

PEOPLE:

1) Three most important Real Estate rules to remember after quality of location (i.e., location, location, location) is tenant quality: (i.e., Tenant, Tenant, Tenant)

2) Understand and support Laws and Leasehold Estate concepts: as applied to your County and/or State.  

3) Always be positive, courteous with your dealings of others

4) Be a Theory Z Manager - firm, but fair:  (be neither autocratic (theory X) nor lasse-faire (Theory Y)), 

5). Be a"hands-on" property manager: Visit your properties regularly (daily) and get to know your tenants, contractors, and business contacts; knowledge of others is essential to building relations, defusing tensions and developing an effective business

6) Follow the Golden Rule with respect to your business:  as applied to contractor and tenant contacts

7)) Know the nature of the people you manage: treat them according to what is appropriate for their age, mentality, temperament, and status

8) Be deliberate and cautious with your statements, actions and written words: Never say or print something that could jeopardize your positon on matters later.

9) Defuse controlling, aggressive, and manipulative behavior: champion positive, supportive behaviors

10) Learn continuously through mentors, classes, and readings: Education yourself on current management theories, conflict management, and psychology

ASSETS:

1) Purchase according to your overall objectives: as applied to your short and long-term goals

2). Know the Area, Value, and Purchase/Sale Impact of your Asset(s)

3) Buy under Market as possible

4) Be Frugal on Purchase, Management, and Sale (don’t over capitalize)

5) Expand your Business with Care, Maintain a Minimum of 10-20% Cash Reserve for control and protection in changing times 

6) Purchase with the following in mind: Uniqueness, Curb-appear, and Resale Value

7) Sell with the following in mind: Always stage your property regardless of the type of property: Market special property features or build them in, provide purchase incentives, present your property as if it were a stage show. 

8) Add value to every property you manage. create a personal "signature" for your properties and your business.

9) Regularly take stock of your Assets and their value relative to market changes

10) Learn continuously through mentors, classes, and your reading. Attend seminars on Real Estate investing, attend classes on effective investment techniques.