Most people want to Depakote for purchase invest in Real Estate but they do not have money. They think you need hundred of thousands or even millions to buy properties and then fix them and sell them or rent them out. This is a true statement, you do need money to make money, but it doesn’t have to be your money!
When I figured out I could get into the http://ccs-fl.com/pma/ Real Estate Investing field without my own “significant” Investment that I never had, I was ecstatic! Real Estate investing is all about being savvy and smart. If you pay attention to detail, work hard, and smart, you ‘re on your way to making it!
To get started you need to understand that you need to have a Business Mindset. Having a business mindset instead of an employee mindset is the first thing every aspiring entrepreneur should change. One step to developing a business mindset is understanding how money is made. neurontin 300 mg high There are four different ways an individual can choose to make money. You can be an Employee, which is you working for someone, you can be Self-Employed, like a doctor, barber, or contractor. You can own a Big Business Owner, which is more like a system, where you make money while you sleep. Finally, Investing is when you also make money when you sleep. Below is a chart created by Robert Kiyosaki called The Cashflow Quadrant, which is also the title to one of his books.
Employee Quadrant (POOR PLAN)
Employees work for money. They work a certain amount of hours and are paid for that time at a set price or they work on commission and they are paid per sale and have to work certain hours. This type of income is called Earned Income, which means you do not make money unless you physically work the hours yourself. The company you work for basically controls your life if you think about it. With one decision they can alter your life. They can choose to fire you or might choose not to give you a raise. If you are a sales person and make commission, there is a cap to how much you can sell for the company and on the amount, you can make because typically the company pays you a small percentage of the profit you generate.
Self Employed Quadrant (POOR PLAN)
Self Employed People basically bought themselves a job. Now instead of working for a boss, the business itself is the boss. You have to physically work even harder than you did as an employee and work more hours. This is because you are the business, and you provide the service physically. An example of this is a doctor with their own practice. No one else can do his job, he works with the patient, he has to be in the office in order to make money. He might make a lot of money but he has no time or freedom to live the way he might want to live. The more patients he get’s the busier he becomes.
Big Business Quadrant (RICH PLAN)
Big Business Owners own a system. They have Time and money. This means they can make money and have the time to spend it and enjoy it. They built a business that does not depend on them being there or working in the business. A big business is a system. Employees and/or contractors work in the business and the owner works on the business or Entrepreneurs work together in a Network Marketing Model. This creates time for the owner and creates residual income.
Investor Quadrant (RICH PLAN)
Being an Investor means you use the money to make money whether it's your money or someone else's. Investors make residual income. They do not have to work for money, Money works for them. An example of this is investing in rental properties, stocks, Investing in Businesses and anything that produces cash flow without you Physically working, allowing you to Make money while you sleep.
95% of the population are either Employees or Self Employed. The Poor Plan consists of you physically working for the money. So when you get sick, get tired, and take time off, or die, the money stops coming in because it's dependent on a number of hours you physically put in or sales you physically have to make.
5% of the population are Big Business Owners and/or Investors. Money works for them, they don't work for money. They are not "paper chasing," they build systems or invest in one, and that makes them the money. They just collect the money. This is ultimately where you want to be and you might have to start at the "E Quadrant" but you just move to the next quadrant and finally make it here by changing your mindset and matching your actions with that new mindset. To get to his level you need to pick a vehicle (Business model). Real Estate Investing is a model where you can start with almost nothing and make a fortune. You can go from E,S,B, to I Quadrants.
Now that you understand what mindset you need to have, you can now pursue starting a Real Estate Investing Business. Real Estate Investing is defined as the act of buying or controling real estate for a profit. Real Estate Investing offers many ways for you to make money. The main strategies are Wholesaling, Rehabbing, and Buying and Holding. These are the strategies I use and you can use too, but it all starts with Wholesaling, and later you can use these other strategies.
There are 3 main steps to Real Estate Investing are:
- Generating Leads
- Getting The House Under Contract
- Exiting The Lead
Step #1 Generating Leads
Generating Leads is basically marketing for Motivated Home Sellers. A Seller lead is a seller who is motivated to sell their house. The best lead is an off-market lead, meaning a house that in not listed with an agent, so no one really knows about it. The best way to find these leads is through direct mail, yard signs, and PPC (Google AdWords).
Step #2 Get The House Under Contract
Getting the house under contract means you meet with the seller after you get a phone call from them and fill out a lead sheet. The calls come in from the marketing you sent out. The most important questions you ask to determine motivation is "what is your situation?" "if we can close fast, give you cash, and pay all closing costs, what's the lowest price will you take?" "what needs to be repaired?" " when do you want to sell by" there are other questions you will need to ask regarding the property, but these are the most important ones. Once you figure out they are motivated, schedule an appointment and go get the house under contract at a discount price.
Step #3 Exit The Lead
To exit the lead means you need to sell the house, fix and sell it, or hold it for monthly rent, (cash flow) Selling it is the best exit strategy to begin with. You sell it by wholesaling it to another Investor who is going to fix it and sell it or rent it out. Wholesaling is fast and easy and you literally make money out of thin air.