5 Top Tips From Real Estate Investing Experts
Learn from these top 5 real estate experts:
When you’re starting out in real estate investing, the process may seem daunting and confusing. However, it doesn’t have to be. There are lots of resources you have at your disposal, and there’s no reason why you shouldn’t be utilizing all of them. That includes your own personal research, taking classes and learning new skills, and especially taking advice from people who have been there and done that before.
As you start to research and take advice from people, you also want to make sure you are taking advice from the right kind of people- aka those who have previously been successful in the business. We have compiled the five top pieces of advice from a group of entrepreneurs and investors who have been successful in the business- Robert Kiyosaki, Tom Wheelright, Blair Singer, Garrett Sutton, Ken McElroy, and Clayton Morris- to help you not only start on your journey, but to start successfully.
Table of Contents
1. Look for a good team to surround yourself with.
As you are breaking into the business, it’s essential that you find yourself a team of advisors who know not only about real estate but also money management, taxes, and sales skills. They don’t have to be experts, but you do want to find people who are both knowledgeable and successful in the business.
You will want to make sure they are successful, you also want to find people who have integrity, are reliable, and motivated to help you succeed. Being surrounded by success is always the first key to being successful yourself!
2. Know how taxes can save you money.
When you find that team of advisors, make sure that at least one them is an accountant, a CPA, or at least very savvy when it comes to taxes and tax deductions and credits.
You will want to have a good understanding of how taxes can save you money, and how you can properly utilize both your tax credits and deductions when it comes to filing season. You may be surprised at exactly what you can save and deduct when you file!
3. Make sure you are starting an official business.
As you start your business, you want to make sure it’s not just in your head, but also on paper! Make sure you are setting up your LLC right away so you can go ahead and use those tax advantages ASAP
You also want to make sure you are never taking checks in your name- always have them made out to your business or LLC. Have that entity set up as soon as possible- if you don’t you are risking exposing your personal assets! You never want to combine your assets either. This can be a tax nightmare for you and can even end with you being audited.
4. Sales skills are a must.
This is the part where you may be thinking “but I’m not a salesman!” Well, the first step is to change that attitude, because as an investor, you are partially a salesman. Having good sales skills are essential when it comes to raising the capital you need to invest. Oftentimes, you won’t even be selling any physical object- just the idea of the investment!
This means that you will not only been good sales skills, but also good communication skills. You must be able to effectively communicate ideas to your potential investors or partners so they have an accurate picture of what your long-term goals are.
Along with those good communication and sales skills, you also want to make sure you have good social skills- your career will only be successful if you are able to rub elbows, get advice from people, and form lasting relationships with those in the industry.
One mantra in this business: your network is your net worth!
5. Use debts to buy assets.
This may seems strange, but using debt is actually a great way to generate income. (Check out our article “5 Things to Know About Good Debt vs. Bad Debt” to learn more.) As long as you are using your debt to purchase assets that will result in a positive cash flow for you, debt can be a great thing.
Another thing to remember: the rich borrow money. Do not be afraid to take out loans, both personal and from a bank, in order to get the assets you need. It will, in the long run, actually generate capital for you. As long as you use it properly, debt can turn into money!
Hopefully, these five simple tips can help you as you being your investment journey. But remember, the knowledge doesn’t stop here. Make sure you are constantly learning and growing, whether that is through research, classes, or your mentors. Your education is never complete!
Another thing you must constantly be doing is acting. You will never achieve your goals if they all stay in your head. So, put the advice from these experts into practice- your team of advisors is out there, it’s just up to you to find them. Good luck!
Charles is the founder of infoSpike.com. He enjoys real estate investing, marketing, and personal finance. Read more about Charles here.