Avoid the Mistakes that Kill First-Time Property Investors

Posted by Michael Sexton on 2/5/2007 at 8:12 AM
Posted in Real Estate

Is it a great time to invest in real estate? Or is it a terrible time?

Today and every day, those are difficult questions to answer. Some things are bad about the current market ... we’ve all read that housing starts are down and that there are many houses sitting unsold on the market. But we are getting a very mixed message. Just last week, a report issued by the Mortgage Bankers Association predicted a strengthening market by mid-2007. Of course, that’s good.

So is it a good time to invest, or a bad time?

I have a simple answer. It is a good time to invest ... a very good time ... if you know what you are doing. If you have the knowledge and the skills to structure deals that take advantage of the opportunities in the current market and minimize the dangers, then real estate still offers a formidable way to amass wealth.

We get comments from Trump University members almost daily that reflect the fact that people who know what they are doing can structure smart deals today. Here’s one such comment posted on this blog just last week, on February 1.

--Location Location Location!-- You always hear that when looking to purchase property; let me explain my --deal of the century-- that worked.
I found a single family home in an excellent location for sale by owner. The price was a steal and I asked the sellers to carry part of the mortgage for five years at 7.5%. With a small down payment, they agreed. They financed half the asking price for five years with a balloon payment for the rest at the end of five years. I payed the principal and interest every month and banked the rest of the rent after taxes and insurance. I had enough in the bank at the end of five years to make the balloon payment. The balloon payment was interest free! The house is generating a handsome profit that I'm putting into an IRA every month! The house sits in proximity to some of the best commercial property locally. In years to come, it'll be a real gem!

So you see, making the numbers work and knowing your regional market can help investors make great deals today, or at nearly any other time.

One thing is certain. You will never make a dollar in real estate if you stand on the sidelines waiting for things to be exactly right for you to take the plunge as a real estate investor.

I’d encourage you to review all the estate courses offered at Trump University, especially The Real Estate Investor Training Program. A success story like the one I shared above is in your future, if you want it to be. But first, you need to jump in the pool!

Michael Sexton is President of Trump University.

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6 Comments Post a comment

Posted by Chris from Biz-Names.Biz on 02/05/2007 10:45 PM

If the location is promising, and the market is down, that is the perfect time to buy at a discount.

Right before Christmas, there were some spec houses in my area that were being sold at $30K discounts -- basically all of the upgrades such as Silestone, upgraded cabinets, fireplaces, etc., were being given away for free -- because the market was seen as being slow and people weren't looking at houses because of the holidays.

Now that the holidays are over and as spring approaches, look for the prices to increase as more potential buyers enter the market and competition between buyers increases.

If you had bought the house with the $30K discount and your neighbor buys at $X + $30K six months later in the late spring/early summer, you've gained $30K worth of equity in a very short time during that time!

When people say the market is down, sometimes that just means everything is on sale at a discount.

I wish I hadn't been broke and in high school in 1987 because I would have bought stocks when the stock market crashed that year. We bought a house late this year because the prices were low and we hope to ride the market up over the coming years.

Quality and lower prices should be a signal to buy, not something to fear!

Posted by user89187 on 02/06/2007 6:09 AM

No one can afford my million dollar investment trust me.

It's the greatest location and I can only see things getting better, and better, trust me.

After what I've been through you could make even millions more suing everyone. Seriously take a few businesses out and build even better ones.

Posted by member1421888 on 02/06/2007 4:26 PM

Don't be afraid to look outside our Country. I bought into a beautiful Condo complex on the Beach in Rosarito (Baja Califiornia). It cost me $250,000 USD and the view is Laguna Beach $3 million+. The complex is 100% American. The building is built to American Standards (in some ways better). As a matter of fact Mr Trump is currently building a Hotel/Condo just a few miles up the coast from mine. While everyone was telling me they were afraid to buy in Mexico, I did my research about laws, taxes, NAFTA, etc. Decided the risk was very small and the benefits were great.

I now drive from Temecula, California to my my condo overlooking the Ocean every week (hour and half drive time) and my too aftaid friends rent it from me when we are not using it and they pay for my dream!

I also have a friend that did the same thing in Belize!!

Posted by member1445505 on 02/06/2007 5:57 PM

This is for Donald

Donald, have you ever been in an apartment building where it seemed there was sexual assault going on, spiritually speaking? Like someone was sitting in your private areas in a sexual manner spiritually speaking. When you buy an apartment building how can you find out what is going on in the complex spiritually. Sometimes it's a church by prayer. Sometimes it's a Ministry. Sometimes it can be a cult organization. So if you want to buy a building and not take on all that stuff what do you do? I would think there would be legal action residents could take agains an owner/owners in this situation. So how could you avoid someone trying to dump the mess on someone else? Put someone in there to see what's going on? Who's doing what? Hhhmmmnnn that might work. Society has to recognize there are spiritual things going on. So when they decide to invest in commercial/residential property you find out what shape it's in first. So how do you go about doing this but by putting someone on the payroll on the inside. Then what do you do when you find it? Prosecute? Eliminate? (I like eliminate)
I woud say yes? Some would say How can you prove it? I would say t's easy. Or do you simply bypass the property and let the government handle it? Just a thought.
One more thing . Would these be considered sexual deviates or spiritual deviates? Sometimes I think our society is in a bit of a mess.
Jerilynn

Posted by ikhan on 02/07/2007 12:55 AM

Checkout DubaiPropertyFinders.net - Dubai Property Developments Online Catalogue. The Portal has been developed & actively supported by private developers in Dubai.
Still to feature Trump Tower on The Palm Dubai probably when launched.
This is the finder first time property investors like to have to avoid making any mistakes - a must use site for any potential buyer

Posted by member1509741 on 02/07/2007 12:30 PM

As you say a leader needs to find the good in people they dislike or others believe are useless.

They do that because for many reasons you may not actually have the best people in your company on your project. That means you do the best with what you have.

Unfortunately The Apprentice is an artificial environment (which makes great TV) and makes people try to really stand out above others in their team. Often this means a lot more abrasive behaviour than the norm.

And each season you can see one or more project managers trying to stand out by making sure their pet idea is the one carried through.

Sometimes this is actually a good thing - like the car brochure design from last season. But as you know it can often backfire and build resentment and destructive behaviour of all sorts.

Living in the UK means I watch The Apprentice with Sir Alan Sugar - which is equally enjoyable and then get to watch this season Apprentice later in the year. So I look forward to it.

Jim

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