10 Tips to Reduce Risk and Increase Profits

[Pedro Gonzalez]

Here are some tips I want to share with you, which I have learned over the last 18. I started with a list and then it grew to a very long one. I decided to cut it to just ten suggestions I could share with you that could help you in reducing risk and improving your profits. So here is the list!
1. Hire a real estate investing coach or mentor
Having an mentor or coach that has more years of experience than you and has gone through the ups and down of the real estate market can be valuable. Remember, that in real estate investing one mistake could end up costing a couple thousand dollars.
A good coach/mentor can help you stay motivated and focused when things get tough. I have heard that the percentage of people who are successful in real estate investing is low, some sources mention as low as 10 percent. Why such a low percentage? I attribute that to many human factors like frustration, lack of self confidence, lack of dedication and persistance, negativity, and fear to name a few. Many quit when they are about to strike gold. Like Napoleon Hill once said “Sometimes the greatest success comes just one step beyond the point at which defeat overtakes you”.
There are many programs available, find the one that better fits your needs.
2. Build The Buyers List!
To make money in real estate, we all need buyers for our properties. In order to move the houses we negotiate or buy quickly, we need people in place to immediately purchase these houses via cash, hard money or creative financing. We must have a quality list of potential buyers for each property we purchase.
3. Build a Mastermind Group
A Mastermind Group is made of like-minded individuals that you can exchange ideas with. You should meet regularly to discuss experiences, hardships, and success. This will provide you with valuable information about yourself and your business.
If you have not read Think and Grow Rich by Napoleon Hill, buy this book right now and study it!
4. Network with Other Investors
There are two types of real estate investors, there are those that think that every investor is a competitor. This type of mentality is based on fear and will limit your ability to succeed. There those investors, like myself, that think that every real estate investor out there is a potential partner.
The association of like mind real estate investors can result in a win-win situation for you and your partners.
5. Partner with a Great Real Estate Agent
Same as above, you need to see a great real estate agent as a potential partner. They can bring a lot of value to the transactions. As any partnership look for like mind individuals, people that will help you achieve you goals.
6. Continued Search of Knowledge
Successful people never stop acquiring knowledge about their business or profession. The way to success is the way of continued pursuit of knowledge. Here are a couple of free websites where you can acquire information and also network with other professionals:
RealEstateInvestor.com
BiggerPockets
Real-estate-investing
7. Commit to Success
The only way I know to ensure success in real estate investing is by committing to be successful at it. I have seen many who have failed at this, and I can tell you that most of them fail for lack of commitment, beacause they take an attitude of “let me give it a try”. Wishing will not bring you success. Success comes only to those who work hard and long at it.
8. Maximize the Advantages of Technology
The way we conduct business today is not same as it was back in 1990. The advancement in technology today allows us to conduct business virtually from any part in the world and increase our efficiency. To stay competitive and minimize the risk of being left behind, stay current in the new trends in technology that affects your business.
9. Develop an Eye for Good Deals
Regardless of the strategy you choose (buy and hold, wholesale, etc) you need to locate good deals. You need to learn to evaluate a property and determine if you got yourself a great deal in your hands. I think it is important that you develop this skill, even if you hire an appraiser to determine the value of the property.
Most of the success in real estate is the ability to recognize a good deal and act quickly.
 
10. Be Organized
Many opportunities are lost due to the lack of organization. Files are missplaced, forgotten deadlines, we do not remember where is the offer and how much did we offer for a property. Staying organized will improve your professional relationship and increase your professional image with your client base.
I hope you find these tips helpful in your business.