Be Your Own Real Estate Tycoon

Ok...so you are not Donald Trump but you have aspirations of joining the ranks of the wealthiest in the business. This business is tough and there are a lot of cut-throat competitors so you will need to equip yourselves with a few tools in order to survive.

First things first. It’s important to have the necessary real estate finance available so that you are positioned to move on a transaction when the opportunity presents itself.  Even “The Donald” leverages himself with borrowed monies or equity partners. It spreads out the risk and allows you to increase the scale of your investment capabilities.

Next it will be important to have an incredible work ethic. It’s true. For every transaction you close on, be prepared to have looked at dozens of properties and then of those, forensically investigate a handful to truly make your decision about its viability.  There are a lot of properties to choose from out there and many are distressed. You must understand that any deal you come across, you are probably not the first one to see it and likely others have passed on it for a reason. Don’t get sucked in by the fancy presentation, either. Do your own independent research rather than relying on the “facts and figures” presented by a biased seller or agent.  It’s okay to be optimistic and positive as long as you stay aware of the motivations of those involved.

Finally, it takes guts. Buying a real estate investment property can be a risky proposition and should be evaluated carefully to minimize those risks. It takes guts to buy just as it takes guts to “pass”. Sometimes NOT doing a deal even though it looks good on paper can take intestinal fortitude. Go with your instincts on this. If it just doesn’t pass the smell test and you are getting a bad feeling about the deal, cut and run. There is no shame in saving your money for another deal. Keep trading up when you sell and taking all the tax advantages available and you can create your own version of the Trump empire!