If you want to build significant wealth investing in commercial real estate, it's going to require that you take the time to think things through. Understand that real estate is generally is a get rich slow kind of business, and one that requires planning, patience, and persistence.
Without a strategy to guide you, the results will likely not be at all what you desired. What does such a strategy look like? It's simpler than you might think.
First, get your personal financial house in order. Orient your financial affairs to serve your purpose of building wealth. Remember my favorite truism: Opportunity without the capacity to capture it is an illusion.
Next, form your criteria for property type, size, and location. Each property type requires a different set of skills and offers varying levels of return. It is much better to fit the property to the investor's strengths, rather than trying to make the investor fit the property.
In the same way, there is no national real estate market. Only by observing your local market can you identify opportunities that are within your capacity to act upon.
Once you've identified a potential deal, learn how to accurately value a property based on its condition, your return requirements, and your borrowing power. Understand why "What is it worth?" is the wrong question, and how to answer the right question: "What is it worth to me?"
And finally, learn how to structure deals and make offers too good to refuse. Act decisively, then be prepared not only to reap the profits, but keep them. Tax planning and asset protection is a key component of building wealth.By Ray Alcorn
If you want to build significant wealth investing in commercial real estate, it's going to require that you take the time to think things through. Understand that real estate is generally is a get rich slow kind of business, and one that requires planning, patience, and persistence.
Without a strategy to guide you, the results will likely not be at all what you desired. What does such a strategy look like? It's simpler than you might think.
First, get your personal financial house in order. Orient your financial affairs to serve your purpose of building wealth. Remember my favorite truism: Opportunity without the capacity to capture it is an illusion.
Next, form your criteria for property type, size, and location. Each property type requires a different set of skills and offers varying levels of return. It is much better to fit the property to the investor's strengths, rather than trying to make the investor fit the property.
In the same way, there is no national real estate market. Only by observing your local market can you identify opportunities that are within your capacity to act upon.
Once you've identified a potential deal, learn how to accurately value a property based on its condition, your return requirements, and your borrowing power. Understand why "What is it worth?" is the wrong question, and how to answer the right question: "What is it worth to me?"
And finally, learn how to structure deals and make offers too good to refuse. Act decisively, then be prepared not only to reap the profits, but keep them. Tax planning and asset protection is a key component of building wealth.By Ray Alcorn
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