Using your Internet money wisely can put you into the big time faster than you might imagine. To use your Internet money wisely, take these proven steps when you're starting your million-dollar real estate career.
1. Real estate is a borrowed-money business from start to finish. Try to put the minimum amount of your own cash into any income real estate property you plan to buy.
2. Remember at all times that your income real estate is a business. Every property you buy except your personal home is purchased for the income it can deliver to you. You buy income property for only one reason, namely the money you will earn from it in terms of rental income and any eventual appreciation.
3. Never look at a residential income property with the thought that you will personally live in it. You're buying the property because your analysis of the numbers shows that the real estate will give you a PCF. You're buying an income-producing asset not "a pretty building on a hill.
4. Real estate and time are interlocked. The time can be long, or short. When the time is long you look for both monthly rental PCF and annual appreciation to deliver the profit you seek. Shorttime real estate profits depend on quick turnover, called flipping. Your profit comes from the price difference between what you paid for the property and what you can sell it for.
5. Your first step after buying income real estate is to raise the rents to increase your PCF from your purchase. Raising the rents also increases the value of your property.Why? Because the higher the income of a property, the larger the amount investors are willing to pay for it!
6. Know, before you buy, the precise profit you will earn from every income property you invest in. Analyze the Income and Expense Statement of every income property BEFORE you buy it. If the statement puzzles you, fax, e-mail, or postal mail it to me and I'll do a quick, and thorough, analysis of it free of charge if you're a subscriber to one of my newsletters.
7. Get into the habit of saving your profits from each property. Build a cash reserve you can use to buy other income properties. You need not spend your savings for a down payment. Instead, use your savings as collateral for a down-payment loan. Then you'll be getting into your next income property on zero cash the Ty Hicks way!
8. Be the ideal landlord. How? Be available to your tenants 24 hours a day, seven days a week, called 24/7 for short. Accept credit-card rent payments its faster and safer for you. Give the tenants a toll-free number to call you for help, or repairs. Offer to supply materials (paint, spackle, wallboard, etc.) so tenants can improve their spaces so they are more comfortable. They'll love you for the attention and consideration you give them. Result? You'll have many fewer, or no, vacancies in your income properties.
9. Prepare a Business Plan for your real estate future. True, a Business Plan may be a chore to prepare. But it WILL give you a view of your real estate business, and yourself, that you've never had before. And, as a subscriber to one of my newsletters, I'll be happy to review your finished Business Plan completely free of charge. Any improvements that might be made to your Plan will be suggested to you in a friendly and helpful way. You are, after all, my good friend!
10. Dedicate yourself to acquiring $1 million in real estate in one year. Use every one of the 365 days in the year to advance toward your goal. Don't take holidays off. Instead, work toward reaching your goal. You'll have plenty of free time AFTER you reach your goal.
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1. Start Investing Money in Real Estate
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