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Posted November 1, 2001
Helpful Advice for the Somewhat Experienced Real Estate Investor
Helpful Advice for the Somewhat Experienced Real Estate Investor Real Wealth by Investing in Real Estate comes across as though it is a book for those who have never bought investment property before. I don¿t think so. The questions that Mr. Roberts suggests you answer are ones that are well beyond the capability of most inexperienced investors. For instance, he suggests that you decide in advance if you want to buy and quickly resell, buy and fix up and then resell, or buy and plan to rent. Well, I doubt if you will know enough to make that decision by the time you finish reading this book. There just isn¿t enough information there to make a good decision, except solely on psychological grounds (avoiding what you hate). Also, you are encouraged to create a detailed plan. Unless you¿ve had experience doing this, I doubt if you will succeed. The book is divided into four sections: Raising Money; Acquiring Property; Landlording; and Divesting Property. I found the last three sections to be very well done for those who know something about investment real estate. This advice was clear, to the point, and detailed. The first section can get you into trouble. It basically encourages you to go raise money from family, friends, and professional investors . . . even if you have no experience. Well, if you flop with what you do, you will probably not get the chance to do this a second time with the same people. Also, there are lots of laws about how you can solicit such investments, which the book doesn¿t really go into. I suggest that you instead find someone who is already doing real estate investing, and find out how you can work with that person to get some experience. If you don¿t know anyone, go to the large real estate agencies in your area and ask them for suggestions about who the local real estate investors are. Then, see if you can arrange an introduction. There¿s always a need to have people do research, track down information, and work on deals. You can learn a lot by taking on these roles, which you will soon have to be doing for yourself. One thing I agreed with in the Raising Money section is that you will probably need at least $50,000 to have a reasonable chance as a real estate investor. By working with existing investors and establishing a relationship with them, acquiring that sum should be much easier to do. Also, you will benefit by having a partner or partners who can help you think through the logic of the deals you would like to invest in. Remember, we all learn more from our mistakes than from our victories. Be sure you¿ve got the funds, develop the experience, and keep a strong stomach to get you through the necessary mistakes that will make you a superb real estate investor! Donald Mitchell, co-author of The 2,000 Percent Solution and The Irresistible Growth EnterpriseWas this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.