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7 Steps to Getting Started In Real Estate

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Published: 03Apr2010
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There are only 7 steps you need to master to be successful in real estate. If you fail to master any single step, you're building your real estate business on a weak foundation. Wouldn't you rather build your home on a rock-solid, unbreakable foundation?

Step #1: How To Set Your Business Up And Build Your Team

I defer to Napoleon Hill! If you look at people that have been successful in the past, a common thread is the people they are surrounded with. You need to build your team with the RIGHT people.

Remember, you get what you pay for! (To give you an idea, I paid $99 for my first company with an ex-business partner. It has since cost me THOUSANDS of dollars in legal fees and two years of aggravation!)

You need to look at joint venture relationships, industry experts like Realtors, Mortgage Brokers, Title Companies, Construction Workers, Bookkeepers, Attorneys, CPAs, etc.

Step #2: How To Find TRULY Motivated Sellers

STOP wasting your time with unmotivated sellers with unrealistic expectations! Just stop. There are always going to be people that have equity in their properties that they're willing to give to you simply because they don't want to deal with the headaches.

Don't think that you have to uncover some magic pill for success with Motivated Sellers! It simply doesn't have to be that way... The tried and true still work. Look for absentee owners, abandoned properties, probate properties, tired landlords (you know what these are!).

You DO have to understand marketing and consistency to make these work for you. But know that no matter what happens in the changing economy, there are always going to be these types of people with which you can put together win/win deals that put loads of money in your pocket.

Step #3: How to Evaluate the Deals And Find the Numbers

This is the crux of your business... Get in, get out, move on. You need to have a system to evaluate whether or not a deal is going to work for you, and it needs to be quick. Set up a spreadsheet, buy some software, do something. You will need to consider purchase costs, holding costs and selling costs. Don't forget to calculate things like incentives, mortgage points, taxes, insurance, utilities, etc.

One you become proficient at this stage of the game, you've got it nailed. You'll be able to go through deal after deal and make decisions in minutes rather than hours or even days! You'll spend less time "thinking" about taking action and more time making money.

Step #4: How To Negotiate Killer "None of Your Own Money" Deals

Negotiating is the key. You've got to know, not only what to say, but how to say it. You need to know how to read people, create relationships and craft deals that are wins for both you and the seller and/or buyer. Successful negotiations come from knowing your business inside and out.

Do you realize that by educating a seller on capital gains, you can actually get them to beg YOU to let them seller finance the property for 6% - 5% or even less? You've got to REALLY understand the benefit for the seller if you want to teach them and get them to accept your offer. We've all got the "What's in it for me?" mentality AND SO DO YOUR SELLERS AND BUYERS!!!

Step #5: How To Write Risk-Free Contracts

Contract is not a four letter word! When you learn how to use contracts to your advantage and get over the fear of writing them, you will be able to put more offers out there, which means you get more offers accepted!

Step #6: How To Choose Your Exit Strategies

You've heard it before: "Keep the end in mind". Well, you can't figure out how to put a single deal together if you don't know what you want to do with it! Sometimes, you are willing to pay full price on a property, but want to negotiate killer terms because it's a prime rental property for your portfolio.

Then, there are other times when you want a big discount for a cash transaction and a quick closing! It all depends on you, your business plan and what you are looking to do now and in the future. (Refer back to Step #1: Set Your Business Up)

Step #7: How To Put It All Together

After you've got the nuts and bolts, it's time to put all the pieces together. You find the deal, evaluate it, then quickly look at your exit strategies and negotiate a win/win deal. Finally, put it in writing. Once you've got the foundations set, it's now time to go to The Next Level. Now, you're truly ready for more advanced topics!

Claim Your FREE Video: "Back to the Basics Real Estate Investing at http://www.RealEstateTrainingAcademy.com/basics. Inside, You'll Discover Simple Strategies That Work In Today's Market to Get Started Making Money In Real Estate.

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