Property Investing - Basic Principles

[Praveen Kumar]

Whether you are a newbie or an experienced investor you can never afford to leave the basic
principles of real estate investing.

You can grow your property folio by applying various strategies. The options can involve investing
in ware houses, retail shops, bulk retail, shopping centers, apartment
buildings, single family homes or motels, taverns etc. You can also
gain expertise in flipping houses, lease options, investing in off plan
property or buying at foreclosure sale. But these can never supersede
the central principles.

You can use different strategies or methodologies but the fundamentals of real
estate investment never change.

I have seen many experienced investors who become over confident and violate these principles. They
invariably suffer grave consequences. So please study the following
fundamental principles of real estate investing with care.

Basic Principles Real Estate Investing:


* You will become rich if you buy and hold property for as long as possible

* Always invest in high cash flow properties. They will give you peace
of mind when the markets are down.

* Do not buy on emotion. Investing is about return on investment. Do the numbers.

* Always study the location. It should be easy to rent.

* Always Buy From a Motivated Seller

* Buy your properties by using OPM or Other Peoples Money.

* Make Use of the Property Cycle to speed up your
growth

* Everything is negotiable. Keep negotiating till you get the right price or walk off

* Educate yourself. There is no greater leverage than knowledge

* Always act. Without action there will be no wealth creation

You will need the mind of an investor to find a jewel investment. Uneducated people use their eyes to find properties.
Thousands of people will pass a property and will see no any value in
it. It takes an educated mind to understand what is the real value and
potential of a property. Knowledge of property investing holds the key
to success.

It is fear that keeps people away from buying property. Knowledge to
some extent abates this fear. However, no one can reach a state of
complete knowledge to overcome fear. You have to act in good faith and
intelligence. You will remain poor if you do not take action. Once you
begin taking action your experience and self-assurance in property
investing will gain ground.

Action is always superior to inaction. When I started out I had no
knowledge of real estate investing. My first mentor was a property
broker. He pushed me hard into buying my first property probably
because he wanted to make a commission. The only sensible thing I did
was to take the leap of faith and get pushed into buying my first
investment property. I have never looked back since. For the first few
years I was a 'street smart' property investor. I learnt through trial
and error.

Believe me take action even if you have limited knowledge about investing. Think big but start small. A few small steps
will change the financial out come of your life.

Knowledge and application of these principles will be the key to your success in real
estate investing.

My recommendation is that you read the 'Principles of Real Estate Investment' in
depth to get better understanding of the subject.