Blogs written for a client.

1. Why Do Most Beginning Real Estate Investors Fail?
Each and every year someone is looking at getting into the world of real estate investing. For
many they look at it as a quick way to make money. It’s because of this ―get rich quick‖
mentality that over 75% of all new beginners fail.
Newbies to the real estate investing world have a tendency to go in the ―all or nothing‖ mode.
They invest in courses and books and hope for this amazing windfall to come their way.
Unfortunately, many will never even purchase their first property.
So why do these individuals fail?
Many new real estate investors fail because they simply don’t walk into the situation with the
right mindset. They are too focused on the money aspect of the business that they have simply
forgotten the basics required in the world of real estate investing: excellent communication skills
and negotiation skills.
These as well as general knowledge and skills where the world of real estate investing are
concerned should be the focus of the new investor; not the money aspect. It’s a given that the
money is a nice aspect of the investing world but without the basic foundations underneath your
belt there is no hope of success.
Once the new investor has bought their first official property these basic skills will see them
through to the eventual financial success that is waiting for them. The real estate investor has the
chance to make money in any economy when most people can’t. It’s those that are prepared and
those that have the right skills that can make money in any economy.
Many come into real estate investing with the expectation that this is an easy business. While in
some cases it can be easy; for the most part it takes a lot of work. Sellers aren’t lining up just
waiting to buy your properties. While buyers are out there, you have to find the ―right‖ buyer for
you and your property.
Avoid being the Dreaded Salesman
Car salesmen have always had a bad reputation. Many people used to make fun of them as they
drove by the car lots and watch them circle like buzzards. That’s why many people dreaded by a
vehicle because they dreaded having to deal with the ―salesman‖. Since they work on
commission many fear that these sales people will say and do just about anything to make a deal
happen. That may often mean sometimes stretching the truth. The same can often hold true when
it comes to real estate investors. Being a person of credibility and merit is important. Being a
person of your word is even more important. Buyers need to know that they can trust you. They
need to know that what you say about your property is the truth; that what you say you will do
will get done.

2. As you can see, the world of real estate investing takes so much more than a get rich quick
mindset. It takes true skills to get you to where you want to be in the world of real estate
investing. With the right skills, there is money to be made. If you are new to this business be sure
that you have the skills to build a solid foundation for yourself. If you do that then you are
starting off on the right path.

3. The Truth and Risks of Real Estate Investing
Life is a game of chance. Therefore it’s only natural to assume that there are some risks involved
in some of the tasks we will do throughout our life. When we look at people who are truly
successful, we see that they are people who have learned how to manage risk instead of running
from it.
Life is also about having a certain mindset. Knowing how to deal with risks mentally is also an
important aspect of being able to manage risks. In the world of real estate investing there will be
some risks and knowing how to foresee these risks as well as prepare for dealing with them is
important.
Potential Real Estate Risks
Real estate has its own set of risks. Some of these are:
Having Negative Cash Flow – If your property isn’t generating positive cash flow then
you are going to be left with a negative cash flow. Many investors have banked on
appreciation values to help them with this but you can’t always bank on appreciation
values going up.
Landlord/Tenant Issues – For the investor who chooses to buy property to rent out,
finding quality tenants is always an issue. If you don’t attract the right tenants to your
property you could end up with a tenant who doesn’t truly value your property. For
investors in this situation this eventually equals more money out of their pockets for
contact repairs and damages.
Preparing for Maintenance and Vacancy Costs – Many investors forget to factor in
ahead of time for property maintenance costs as well as money to tide them over until a
piece of property is either sold or rented. The longer a property sits empty; the longer the
investor goes without making money.
Extensive Workload – As a real estate investor you need to understand that managing
real estate takes work. Many new investors start out working their investment business
while working a fulltime job. This is where effective time management comes into play.
Some investors who decide to rent their property may want to also consider hiring a
property management company until their investment business takes off.
Waiting on Appreciation – We all know the housing market has its fair share of ups and
downs. You can’t always bank on the value of a home or property going up. There may
be down times as well. The successful investor prepares for these potential down times.
You have to have a plan to get through a down economy.
As you can see there are various risks when it comes to real estate investing. However the
successful investor looks ahead at some of these potential risks and formulates a game plan to get
past these risks.

4. Successful Real Estate Investors Set Goals
When you take a road trip, you generally map out where you want to go and what you want to do
while you are there. Before GPS systems were in place, people had to actually sit down and think
about the travel route they wanted to take to get to where they wanted to be. Even with the
development of GPS system you still can map out the best route for you based on a variety of
factors.
Well the same is true for just about everything we do in life. In order to achieve something; in
order to be successful, you need a plan that is based on goals that you want to achieve. Statistics
have shown that those who set realistic goals; review them often and keep moving towards them
will most of them; if not all of them. Having a clear vision and direction brings a sense of
purpose. It’s that purpose and drive that makes a real estate investor successful. Some of the
most successful investors know how many properties they want to obtain each year or ho w
much private capital they want to raise. Having a measureable goal allows you to clearly see how
close you are coming to achieving that goal. It also lets you see what is working and what is not
working so that your plan can be modified to fit your goals.
You’ve probably heard of S.M.A.R.T. goals. This acronym stands for:
S – Specific
M – Measurable
A – Attainable
R – Realistic/Relevant
T – Time Framed
Let’s look a little closer at each section as they are defined by the University of Kansas:
Specific (and strategic): Linked to position summary, departmental goals/mission, and/or
overall School of Medicine goals and strategic plans. Answers the question—Who? and What?
Measurable: The success toward meeting the goal can be measured. Answers the question—
How?
Attainable: Goals are realistic and can be achieved in a specific amount of time and are
reasonable.
Relevant (results oriented): The goals are aligned with current tasks and projects and focus in
one defined area; include the expected result.
Time framed: Goals have a clearly defined time-frame including a target or deadline date.

5. In order to achieve your goals for real estate investing you need a through; in-depth plan and you
need measurable and realistic goals to help you achieve your overall plan. Using the S.M.A.R.T.
goals concept, you can develop goals for your investment business that will help you get to
where you want to be. It starts with a goal and develops into a plan for success.

6. Things to Consider If You Want to Hire a Property Manager
For many real estate investors, the thought of renting sounds enticing. For many it’s a way to
being in a source of income while they work on the rest of their investment portfolio. For some
building a portfolio of rental property is a great way to build and investment foundation. Many
investors have stated that they started out in property rentals as they worked their way up the
investment ladder so to speak.
However, if you build a large rental portfolio it can be quite time consuming. There is always
some unforeseeable maintenance issues that need to be taken care of, there is through screening
of potential new tenants, collection of rental payments and more. This can eat up a lot of your
personal time.
This is where hiring a property manager could be the key to not only maintaining your sanity but
also allow you the time to build up your path to success. A property manager can handle these
minute details that can eat up a great portion of your day. This gives you time as the investor to
actually ―build‖ your investment portfolio instead of having to focus all your time on your rental
properties.
When considering hiring a property manager, be sure to keep these things in mind:
Maintenance Experience – What is their level of experience where maintenance issues
are concerned? If they don’t have first-hand maintenance knowledge, do they have a
reputable network of maintenance vendors at their disposal? Maintenance issues must be
handled in a timely manner in order to keep your tenants satisfied.
Professionalism – Is the potential property manager professional yet assertive? Can they
deal with tenants who are late on payments in a professional manner while still being
assertive? This is an important aspect that every property manager should have.
Knowledgeable – Is your potential property manager knowledgeable in landlord/tenant
laws as well as housing regulations? It’s vital that your property manager is up-to-date on
all current policies, laws and regulations where landlord/tenants are concerned as well as
housing codes.
Reputation – Does your potential property manager have a reputation of excellence? Are
they reputable?
As a real estate investor, you don’t always have time to manage your properties and build your
portfolio at the same time. In this case hiring a property manager may be just what you need. As
with anything you’ll want to check them out thoroughly but they can help alleviate some of the
stress of property management and save you valuable time.