Why Your Real Estate Investing Plan is Your Treasure Map to Riches

Posted on 10. Aug, 2011 by in General

You’ve read all there is to read about how great real estate investing is and how it is one of the most used methods for achieving passive income, wealth and ultimately financial freedom.  Great ! Now where to start? It’s easy – you’ve got to have a plan. 

A plan indicates that you’ve thought long and hard about your life and aren’t just waiting for ‘something’ to turn up. The same applies to your real estate investing plan – it shouldn’t be a dream, it’s something you intend doing rather than something you are wanting to do.

How do you go about creating such a plan?  Firstly, work out what you want to accomplish from real estate investing. Only you can decide this. Identify the kind of property investing you are interested in, is it buy and hold, rent to own, commercial real estate, condos, single family, multi family homes – duplex, triplex, apartment buildings, – or maybe it’s fix and flip or even raw land on which to develop?  There are many, many ways to invest in real estate.  You have to find out what ‘floats your boat’, what interests you and what you are able to afford at this stage of the game.

Before you rush out to buy your great piece of property, there’s a lot more ‘behind the scenes’ planning work to be done, such as securing funding, checking out location and economic fundamentals, zoning and putting together your winning team (lawyers, accountants, real estate agents, inspectors, property managers etc etc).

This is just the start – maybe you have a spouse or significant other, is he or she supportive of your commitment to real estate investing?  It’s a time consuming task and takes real perseverence to balance work and family life.

Your plan should identify what areas of real estate investing you need to develop further – now is the time to take stock of what you don’t yet know and learn it!  Buying investment real estate is a huge commitment and one that should not be taken lightly. It’s a continuous learning curve filled with many ups and downs.  It is no easy ride and there are no short cuts.

Commit to your plan and modify it when required. You wouldn’t set off on a journey to a new destination before planning the route would you?  Well the same advice applies to real estate investing.  Planning your route is an important step and the more research you do beforehand to build your foundation of knowledge, the more success you will attain.

Work hard to achieve your goals, stay focused, keep learning, take risks and most importantly – take action today to secure you a wealthier tomorrow!

To your investing success!

Richard

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