The Secret Recipe
We all know the story of Mr. Krabs trying to keep away his secret formula from Plankton in the hit show SpongeBob SquarePants. We also know you’re probably wondering what that has to do with real estate investing.
With our top secret spies, we were able to steal the “secret formula” from the most successful real estate investors. The secret formula tells you all there is to know about how to own the most profitable investments and become one of the most successful investors.
Recipe to Success in Real Estate Investing
We’re about to share with you the top secret formula for success. Keep your mind open, brain stimulated, and money ready because you’re going to want to invest in rental properties after this. Without further ado, the strategies to becoming one of the most successful real estate investors:
You know how the Betty Crocker cake boxes start with a list of the ingredients to the cake and then follow with directions on how to bake it? Well, we’re about to do the same thing now. Prepare to learn how to “bake” the most successful real estate investors cake.
Start with 1 Cup of Distressed Sellers
Targeting distressed sellers is a little hint to becoming one of the most successful real estate investors. What you’ll find with distressed sellers is that they really just want to get the property off their hands for whatever reason. Death, divorce, downsizing, or maybe just a change of pace could all be reasons a seller would be “distressed.”
Most of these buyers will be looking to sell their properties as soon as possible, which also means they will be more willing to negotiate and sell at a discounted price. Guess who gets the advantage? You! Less money spent on a property is more money for other aspects of the real estate investment business.
One way you can find these distressed sellers is by simply driving around neighborhoods to seek neglected houses. Houses that look empty, overgrown yards, and traits that just make the home look like it is under the ownership of a distressed seller.
To find the identity of the owner, you can check up with the county recorder’s office. Going the extra mile could potentially save you some coin.
Stir in 2 Tablespoons of Creative Financing Techniques
Creative investors are innovative and quick on their feet. To be a creative investor means being one of the most successful real estate investors. Property financing is probably one of the first things that pop into your mind.
If you limit yourself to working with a conventional loan only, you’re selling yourself short. Once you limit your investment property financing strategies, you weaken the start of your real estate investing game before you really even get started.
Get familiar with creative financing for real estate investors. In this way, you will be able to offer the seller the best option. And of course, you would be able to set yourself up for the most favorable and beneficial financial circumstances in the real estate transaction.
A simple Google search of “real estate creative financing” will provide you with a number of different creative financing methods that you will be able to pick and choose from!
Add 3 Tablespoons of Residential Properties
This ingredient is especially useful when you are a beginner in real estate looking to become one of the most successful real estate investors. It is considered best to look into investing in residential properties rather than commercial mainly because of the demand.
Everyone needs a roof over their heads and a bed to sleep on, not everyone will want a shopping mall space. When investing in residential real estate, your buyer and seller pool is larger by default.
Get to know how one real estate investor began to write her Mashvisor success story here.
Mix in 4 Cups of Growth
We stress the aspect of growth when it comes to real estate investing because it indicates improvement. We love improvement, tenants love improvement, and real estate investors like you should love it just the same! Growth is also a good indicator of how healthy the US real estate markets you are investing in really are.
One form of growth real estate investors like you should look for is steady job growth. Individuals follow wherever the jobs are. The more jobs open up in the US housing markets you are investing in, the greater the flock of people flowing into the area. A greater number of people means a greater number of buyers and renters. We know what that means: Hello, rental income!
Get to know how the most successful real estate investors make massive rental income here.
Other indicators of growth to look into are industrial diversification, a steady (ideally large) population, and increased new residential construction. One way to keep track of these different forms of growth is by simply turning on “Google Alerts.”
Google Alerts gives you notifications of a number of new developments in the area. “New arrivals,” “every day,” “town,” and “city,” will pick up any mentions in online news. This could be something like “There are 52 new arrivals to Southwest Anaheim every day.”
Yes, you may get caught up in some irrelevant news, but you will also get a good amount of the “good stuff” as well. Play around with different keyword combinations to use. Utilize this real estate investment tool to your advantage.
Sprinkle 5 Pinches of Fast Property Purchase
There is an Arabic proverb that basically translates to “Whoever waits too long, misses out.” We’re sure this proverb is found in a number of different cultures, as it is true! When it comes to real estate investing, waiting too long could cause you to miss out on the good stuff. We don’t want you to miss out on the good stuff, we like the good stuff.
It is a known fact that the real estate business is a competitive industry. Real estate investors are hungry lions all chasing the same juicy steak. This is where acting quickly comes in handy. You either take it and go or pass on to the next one.
This, of course, does not mean to disregard due diligence and analyzation. However, if your decision-making process is taking too long, the property will be long gone and resting in the tummy of another real estate investor. That was our steak, and they just came along and stole it.
If you need some further consultation about an investment property, look to the help of a financial adviser. Either way, do your best to make what all happen in the acceptable amount of time. Find a balance. Don’t be too rash, but avoid dragging the decision for too long. The most successful real estate investors are able to find a balance, and so will you.
Add the Last 6 Teaspoons of Passive Income
Aha, the word you have all been waiting for: Passive income! In order to build long-term, sustainable, and consistent cash flow, you should explore passive income. Different real estate investment strategies allow you to practice the art of passive income, more than others.
For example, a buy-and-hold strategy is significantly resourceful for rental property passive income. Purchasing an investment property, fixing it up, and renting it out allows you to collect and set monthly rental rates. In this way, you pay off the property while still getting some of that cash flow into your own pocket.
Buying and holding is considered one of the most profitable investments, as it gives you a stable base rental income which allows you to save up for the next purchase. The process will repeat over and over, and soon you will find yourself as one of the most successful real estate investors.
The Cake Has Been Baked!
We know you smell the sweet scent of money coming out from your real estate investing oven. With this mouth-watering secret formula, you are bound to find yourself as one of the most successful real estate investors.
Your one of a kind real estate investing skills combined with the Mashvisor top secret formula for success will result in one thing. That is, becoming one of the most successful real estate investors of your time. Now go out and bake the cake! Make sure to save us a slice when you do.