In these years when I made the real estate investor, I saw that there are some rules, which, for better or worse, is always true in all markets. I purchased all over Italy and abroad and these rules work.

7 am – and I have already talked about but it’s worth repeating it – and I would really call them “golden rules”.

Follow them to your advantage and profit, ignore them for your own risk.

1) the money you make when you buy, not when you sell

If you buy at a discount, don’t miss it ever. You may not purchase the property most liquid in the world, but when you have margin for resale, everything becomes easy.

Conversely, if you buy with little discount or at market price because “the market goes” do you find yourself easily with cash on hand.

2) always buys from a motivated seller

Who is a motivated seller? One who wants to sell, being an individual who no longer wants to keep the property for any reason. In short, don’t waste your time with someone who clearly has no time or money and wants to achieve maximum. Look for one that has no time and maybe even money. Will surely be motivated!

3) fell in love with the deal, not the property

It happens that a property you like, maybe even a lot. Since that time can’t be objective. But remember that it is never the property make money, the brick does not Bank. It is the deal that the property represents which does make money. Always focused on the deal, never about building.

4) learn to trade

If you really want to learn how to negotiate, there is a seminar that teaches you. However, a simple rule is this: never say first name a price. It’s a rule of thumb that works across all sales opportunities, not only with real estate. the first mention of a price will ultimately lose. The same property may be very different prices (up or down depending on whether you are selling or buying) and basically depends on your ability to negotiate.

5) try to buy with little or zero money

The real estate business is a business to do with the debt. Investing in real estate with their own money undermines the advantages of this type of investment. So always try to buy with less money, or better yet, with zero money.

Offer low deposits (parts from hundreds of euros) and make offers to buy that you consider embarrassing (at least 30% under 50% better deal). Remember rule # 1 of the investment property.

6) in real estate capital, cashflow then

I wrote many times and repeated to my seminars the importance of cash flow. Cash flow is the good health of a business. You can also have a profitable business, but if your cashflow is negative you’ll end up easily in the air.

With real estate, cash flow is “providing income”, renting. However, in Italy it is very difficult to have a positive cash flow if you rent a property you are paying a mortgage. Instead, you’ll need to create the capital with trades and then use that capital – along with the leverage – for larger operations that will aim to generate cashflow.

7) The real estate deal of your life happen every week

Real estate Affairs always exist in every period of market and in every market. If anything, the problem is finding them. But to begin to find them you have to start believing that there are (because there are, I promise). If you start believing you can find houses to at least 30% off, with financing options to your advantage and with easy and profitable sales opportunities, you’ll start to find them. Each week there will be at least one opportunity to make a real estate deal. So if what you’re dealing with doesn’t convince you, believe me, the sea is full of fish. Goes to the next building.

The seven rules that are really the basis of investing in real estate. And if you decide to become a real estate investor, you will be natural. And as you can see are simple and based on what could be called “business intelligence”: buy low, be good at bargaining, you don’t fall in love with the products, but the wealth that the products they take you when you sell them!

Leave a Reply