Real estate moguls weren’t born that way, even if they were born into a family of other “moguls”. It is sometimes easy to assume that some people just have an instinct for investing in real estate, or that it is beyond the scope of the average person’s abilities. In truth, it may be too much for the average-person’s patience, but not their abilities.
That suggests quite affirmatively that anyone who puts their mind to it can become a real estate mogul. That means there is no special “real estate investing gene”, without which the average person is doomed to poverty or a below average life. It means that there is hope!
As is written in the books of Robert Kiyosaki, the best way to learn about investing in real estate is to simply observe a process. There’s a step-by-step method that you go through when learning how to invest in real estate. The first step, outlined in Robert’s “Rich Dad, Poor Dad” book series, is to teach yourself about the parts of real estate investing.
What that means, is it is absolutely imperative to learn what Kiyosaki refers to as “the language of real estate investing”. In order to be successful at investing, we need to be able to find properties that will be successful. In order to find properties that will be successful, one must read the property’s records. And in order for that to be beneficial, one must be able to understand those records. Those records are the financial summary of that property. Hence, the hopeful real estate investor must be taught finance and accounting. It isn’t necessary that she become an expert either she will later hire an accountant for that sort of expertise but she must know what her accountant is talking about to her when they discuss these matters. She must know what will be effected so that she may make intelligent decisions. She must be able to understand the documents and figure out what they mean to her.
She must do the same with other aspects of real estate investing also understand enough real estate law to do well and learn about the buildings themselves. That is an excellent place to begin. Once the would-be investor knows about finance, law and the properties themselves, then she has a platform to educate herself about the markets. Then she can learn how location can affect the value of a particular property, that even a pristine building in a bad part of town is fated to command only low rent. She can learn how to begin choosing a location in which to purchase properties, how to conduct the research, and with whom she should speak.
The beginner investor will resort to what she learned about finance, law and buildings while she considers a prospective property. At some point, she should have learned which aspects of the potential property to inspect and that is much more than the building itself. Needless to say, she will go through it with her building inspector to discover what physical shape the property is in, but she will also like to find an appropriate management company, landscapers and anyone else connected with the property. Prior to making a selection, she will know precisely how much it will cost to keep the place running. She will be aware of what the issues are and how much it can most likely make for her. She will know what it makes now, what it will make now and what it will make in the future.
She also knows that the savvy investor does not become emotionally attached to the idea of closing the deal. She knows that the bulk of deals just aren’t meant to be closed. She knows or she will learn, if she is to become profitable that investing in real estate is mainly about investigation. It is about searching and asking a bunch of questions.
doing this over and over is what creates a real estate mogul. The knowledgeable real estate investor won’t perform halfway. She constantly is in touch with the activities of the marketplace and of her investments. If a property in her possession isn’t producing expected results, she sees this and act accordingly.
In summation, the real estate investor grows into a real estate mogul simply by keeping herself well versed, and by learning all the time. And also, by practice.