Want to be a Full Time Real Estate Investor-Don’t Give Up Your Day Job til You Follow These Steps
It simply isn’t good enough to just want to be a full time real estate investor. The most important element is knowing actually how to be a full time real estate investor. If you don’t know how to do it you will not succeed and quickly find yourself back at square one. With just more than 38,000 full time real estate investors in Australia it goes to show that it isn’t a common profession so the odds are against you if you don’t have what it takes to succeed. real estate however is the basis of every business and has the potential to provide you with the very wealth you need to make it as a full time real estate investor.
As a full time real estate investor you need to have talent and be dedicated to the real estate investment market. To make it in the real estate investor’s world you firstly need to be a good student so that you know what is happening in the real estate world. This will allow to properly analyze market indicators. You need to be knowledgeable about all of the information regarding real estate investment including updated information on building trends, union activities; Reserve Bank of Australia decisions and the list goes on. You need to be a good reader and dedicate yourself to reading as much about the subject as you can.
If you are considering taking the leap as a full time real estate investor it is wise to sit down and write a list of the negative and positive forces which can affect the real estate market. There are more than you think so take your time. After this you can enter the research phase of your new career. You need to be able to understand what will happen if housing purchases are down one month and the effect that this will have on interest rates and even as far fetched as the effect upon building supply prices. The real estate investment arena is a complex and interwoven labyrinth and you need to be able to speculate what is going to occur from one day to the next.
Don’t think you can give up your day job just yet though you need to develop the technical skills to interpret all of this information so that you can make cash flow positive decisions. You don’t want to start your career as a full time real estate investor when all of your assets are creating a negative cash flow scenario. You need to be able to stay on top of your finances and identify cash flow trends so that you can plan your future activities.
If you don’t stay on top of your finances and make wise decisions from the trends that are appearing you are nearing financial ruin. Finances is the most important aspect of a full time real estate investor because you do not have the security of a full time wage and all of your income is dependant upon market conditions and choices you have made in the past. When you come to the heart of the matter – becoming a full time real estate investor requires four key characteristics:
1. Business Skills
2. Management Skills
3. Financial Skills
4. Ethical Skills
These four skills are the basis for your success as a full time real estate investor. And are discussed briefly so that you can identify whether or not you can gain the skills required or whether you should simply choose another career path. If you cannot adapt to these critical skills then you will not be successful in the real estate investment arena and it is better to find out now rather than later. Otherwise you will have risked everything and gained nothing.
o An understanding of real estate and investing
o A historical appreciation of real estate investment trends and real estate cycles and the ability to interpret future trends
o Ability to identify long term prospects of the housing market
o Ability to fiercely negotiate
o Ability to deal with people and conflict
o Ability to communicate effectively with professionals, trades people and tenants
o Ability to display charisma and get people to think the way you do
o Ability to manage effective records
o Ability to calculate the real return on investment
o Ability to increase profits and equity
o Ability to Balance your financial books and keep track of expenditure
o Ability to calculate the true value of your investments
o Ability to forecast cash flow and debt
o Ability to maintain true and correct records
o Ability to meet the needs of your tenants
o Ability to openly and honestly communicate with all those who you deal with as a full time real estate investor
o Ability to be honest with yourself and make honest decisions
As you can see there is more to becoming a full time real estate investor than merely just wanting to become one. To take this on as a full time career you need to devote your life to the real estate market and also maintain basic business principles which will help you to succeed even when times get a little bit rocky. Once you gain the understanding that you need you will realize it is not a tricky business to be in, just one that requires time and devotion. People always dream of becoming a full time real estate investor but few ever do. If you meet these skill levels and have a strong desire to succeed then perhaps it is time for you to take the plunge.
real estate investing is the way to true wealth. If you remain cautious and rationale there is no reason why you can’t succeed. Don’t just jump in at the deep end though take your time. Start with some investment properties while you are still in full time employment. As you see the cash flow increasing to at least the same level as your wage then start reducing your previous working activities. It is always wise to try before you buy and make sure that this is truly the life that you want to live. Remember there will be some scary times ahead wondering if you will be able to continue but if you have taken all the precautions and show the necessary skills you should be fine.
Paul Derry is a Full-time Property Investor/Developer and Entrepreneur in his 30’s living in Queensland, Australia. Having funded dozens of property deals personally with many more as Joint ventures, he has a wealth of knowledge, experience and resources which he freely shares with fellow active investors at http://www.FreePropertyTraining.com