We should know the 4 reasons and steps for investing in real estate.
Table of Contents
4 reasons why to invest in real estate:
1. Comparatively secure – This investment is comparatively more secure than other investments.
2. Values– generally real estate value mostly gets appreciated by time. Other investments or company shares can go very high or less.
3. Consistent Income– If you give your property at rent.
4. Loan– If you go to the bank, you will get a loan in real estate for buying property. But you won’t get a loan for buying company shares. And more than you can extend your loan for 30 years.
These are the 4 reasons why to invest in real estate.
How to invest in real estate is a step-by-step process.
Buying property is a 4 step process.
1. Net worth model
Peoples earn mainly from 2 ways:
1. Work and earn.
2. Asset income. For this, he needs little work or no work.
Every people mainly like to focus on asset income.
Asset income is of 4 types:
1. Spend the money: If spend the money coming from assets, he cannot be rich.
2. Save the income: From this, he can be secure, still, he cannot be rich.
3. Donate the money: For this is get good feelings and it will help others.
4. Investment: Invest the money in other sources. Such as mutual funds, stocks, bonds, etc, or business, real estate.
From this investment, he started getting money every month. Which will increase his asset income and in long term he will be wealthy.
Every month we should focus on our new goals where we can reduce our spending and we can invest more and more money.
When you knew the income pattern of every month.
We can start investing.
2. Financial model
- When you want to buy a property you should first check the locality where you want to buy the property.
- At starting we don’t have any knowledge.
- At first, we should ask for 100 deals being a customer and seller.
- Such that we get knowledge about the area.
- That moment when we get 100 deals, that time we can get the exact genuine price of the property.
- All the real estate agent tells that they get profit when they buy a property not when selling property.
- We should always try to buy property at a 20% discount.
- Suppose we sell the property after 6 months that time we will get some profit.
- To buy a property we should down payments of 20% and 80% on loan for 30 years.
3. Network model
- In one year maximum, you can make one or 2 deals.
- In 1 year you have to increase your network consistently.
- You should search for new deals.
- In your network:
There will be 3 types of people: - Inner circle: Contractor, property manager, your mentors. those people they want your achievement who gives deals and information, you should be in contact with them the whole year. You should at least meet them physically or talk to them on phone.
- Support circle:
When you make a deal, you might need an advocate, real estate agent, investor, property manager, etc. - The whole year you should be in contact with these persons. and at least you should make a call in 6 months.
- Service circle:
Are the person like plumber, electrician, carpenter, builder, etc. We contact this person when we have requirements. - But you should have their phone numbers and they should know you such that your work gets complete fastly.
How to grow rich automatically
4. Lead generation model
Where to get the property deals?
- In the area you have selected for the property, you have to spend your maximum time in that area.
- You should check for the board mentioned in areas if there are any properties for sale.
- You should check websites, newspapers and talk to the real estate agents.
- More you should also keep in contact with the gatekeepers.
- You can keep in contact with divorce advocates, they can tell you the best deals. Maximum divorce couple wants to sell their property at less price.
- Or bank staff who can give information and can help you to meet with people who could be able to pay the bank loans and their property is going to shige.
Now the question comes:
If we don’t have money we cannot buy any property.
- In starting if you wish you can work as a real state agent.
- Who knows about all deals of property as he searches for the best property deals.
- You should find deals such as deals where you help meeting buyer and seller and you in between gets the commission.
- And from there you can start your real state careers.
These are the 4 reasons why to invest in real estate that can benefit you in long term.
