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My experience is that most new investors don't fail at investing... they fail at marketing. Marketing is how you sell you skill as an investor and find enough motivated sellers to keep
cash rolling in.
You can use billboards, flyers, telephone calls, door to door canvassing, bandit signs, newspaper ads, Web sites, direct mail... or any combination. If you don't use good marketing every week of
year your chances of becoming a successful investors are minimal.
Good marketing is
secret. You can be expert at every creative buying technique in
book. If you can't locate motivated sellers every week you just won't be able to buy houses.
Time and again we've seen people with just basic knowledge of one or two buying techniques become very successful, because they are unrelenting in their search for motivated sellers. Perseverance and stamina can work wonders.
My choice is to mail postcards, because they are inexpensive to prepare and send. You can read more about my postcard system at http://digbig.com/4cjxp Step four - Always have an exit strategy before you buy:
Before buying an investment property you must carefully evaluate
potential for profit. One of
keys to your evaluation will be to determine what you will do with
property if you buy it.
Included in
many way to profit are:
1. Place it in your "buy & hold" inventory if it will produce profitable rental income. 2. Place it in your "buy & hold" inventory if it will produce break-even cash flow and you expect it to increase in value by 8% to 15% or more per year. 3. You can assign
purchase contract to another investor for a one time cash payment. 4. You can buy
property and immediately sell it to a retail buyer and cash-out. 5. You can exchange it for a more desirable property. 6. Refinance cash out and use
money for
down payment on another property. 7. Etc...
Finally
Now you can visualize
four basic steps in real estate investing. You'll never know all there is to know about every step. Just get started and add to your knowledge as you go along. Remember, all it takes to be successful is perseverance and stamina!
