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How to become a successful property investor

Many think it takes to be Donald Trump or Robert Kiyosaki to become successful in real estate investing. That is just not true.

Granted they are some of the most famous investors, but don’t think that others are not successful. Some are widely successful, they are just not famous…. and mind you, not everyone seeks fame after success.

Here is what it takes for the beginning:

  1. Mind set – without this you should consider quitting while you are ahead. Sounds harsh? Not really. You will be saving yourself a lot of heartaches. If you are not willing to keep an open mind and HONESTLY evaluate for yourself and all you deepest and darkest beliefs… you have a way to go.
  2. Passion – ok this is less obvious. But let me tell you this: if you have no passion for what you do, eventually it will all crumble on you like a house of card in a hurricane…. This is does not mean that you have to have passion for just about everything in property, but some have passion for making deals, others love property generally and are interested in everything about property, some love letting and others renovating, but some want nothing to do with it. You have to have some sort of passion for something about property and if you hate something outsource it, as your hate might just put a sudden stop to your success in the midst of your unhappiness. Yes, this also has a lot to do with mindset but deserves special emphasis because some people got into property investing just because it was the “in” thing to do and everyone was investing.
  3. Learn about financial management. Ok… most of you by now say… I heard enough, no thank you. Unless your profession has something to do with financials, who on earth likes stuff to do with maths. Well I have to tell you that if you invest in anything, financial management and risk management is something that you will have to learn with time inside out. It may not take one day, but if you get started you will get there and it is important to understand that the difference between having knowledge or not in this subject, can be the difference between wild success and horrifying downfall. If you hate maths, get help from software and tools, but learn the principals of sound financial and risk management.
  4. Learn about property law. You don’t need a degree here, but the basics will do. For example what happens if you buy in our own name or a trust or a CC or a PTY. What is a sectional title, what are the legal implications of owning a sectional title. Why, how, what, where – the basics. The basics will help you to build a sound strategy for yourself that will lead you to success, rather than fixing a whole lot of wrong decisions.
  5. Understanding the basics of property tax law. Again, no need for a degree or PHD here, just learn the basics, this will help you optimize your purchases and get more out of your money while optimizing every investment decision. The professional with the degrees and PhDs will help you with the complicated stuff when necessary.
  6. Learn about areas you wish to invest in. Granted, I know plenty of investors that don’t know every area they invest in, but if you are just beginning and do not consider yourself a pro, start learning micro economics of areas, even if you won’t invest in them at the end. This will help you make faster and better decisions later in other areas by asking the right questions to the right people to make correct decisions.
  7. Think for yourself. Once you get the basics done, you must think for yourself, every decision a successful property investor makes, he makes it for his or her circumstances, not anyone else’s. There is nothing wrong with reading, learning and listening to others; actually it is a must and a learning process in itself. However when the time comes to decide on an investment the information must be applied to personal circumstances, and no one knows your personal circumstances better than you.

To summarize, investing in property is not cheap, returns can be exceptionally good and can make you a fortune, build wealth and achieve financial freedom, but can lose you just as much. (Don't believe me....... check the latest repo lists at the banks, those are mistakes that people with no knowledge are paying for now).

It is not easy at the beginning, but it can be great fun and lots of money if you have the basics under your belt and keep educating yourself along the way.

Once you have the basics, every additional piece of information just falls right in place easily. The beginning may be a pain, and extremely confusing, (I know I have been there), but if you learn fast, the beginning can be overcome in a few short months, not much to worry about when you consider the long term benefits.

And above all, never stop learning.

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Molatelo - Property     | | 2009-01-13 10:30:50
I am into construction now. However, my passion is in property development. The problem is i tried to approach established developers but in vain. Now i want to start on my own and need the basics. Is it difficult to work on your own?
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Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved.

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