When it comes to real estate, we have the winners and others. While television series and authors will make you feel like you can do absolutely anything as a real estate investor, the gospel truth is that real estate is risky.
Just like any other entrepreneurial field, real estate comes with its own sets of rules, strategy, and risks. Michael Andrew Lauchlan, a seasoned real estate investor and entrepreneur, has seen it all—real estate wise.
He shared some tips about achieving success as a real estate investor with us. Below are the words of Michael Andrew Lauchlan on becoming successful in real estate.
Real Estate is Not Quick Money
It’s the first thing I try to drill into new investors. Real estate is not a get rich quick scheme.
If it were, everyone would be multimillionaires. Do not mind whatever you read in magazines or see on television.
I am not saying that you cannot make tens of thousands of dollars from your first stint at a real estate deal. Of course, you can; however, you should not expect too much.
The real estate industry is not for the faint at heart. The real estate market is not for people who lack foresight and vision.
If you want to build a career in real estate, you need to be patient. You need to understand timing and learn the precise time to act.
It’s Never Too Late to Start
It’s never too late to start investing in real estate. No matter how old you are, you can still begin a career in real estate.
Yes, House Flipping is Still Good Money
I know that because the media has painted house flipping to be the new real estate money, people are becoming distrustful of the process. House flipping is good money; however, you must learn to do it right.
For a house flipping project to be successful, you must fulfil these two criteria.
- Capital: House flipping is a real estate strategy or deals where you buy, renovate, and then sell. Projects like these should take between a month and a year, and you must be financially capable of carrying the cost.
The capital for a house flipping project is critical because, unlike a buy-and-hold project, you need to get things moving. A single day of delay can cost you thousands of dollars worth of loss. - Market: Do not buy a property that cannot be easily resold. Do your research well before you get stuck to a property that no one wants, yet is draining money (mortgage, interest rate, renovations, dues, tax, and more) from your pockets.
Related: Top Secret House Flipping Strategies Revealed
Prudence is Critical
In real estate, sometimes, the difference between a loss and again is the amount of money saved. This is not to say you should hold on to funds needed to further your real estate project.
No! It means that you spend as much as you can; invest as much as you can; save as much as you can.
Don’t Give Up
Remember that in real estate there are winners and there are losers. Losers are people who give up on themselves too early.
Sure, you will make mistakes; everyone sometimes does; however, your mistakes do not define you. You are not a failure.
Get in, learn the ropes, but most importantly, if you fail, do not give up.
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