Real Estate Rule #1 – The first thing you need to do is learn how to find the fair value of a property before you buy it. Real Estate investments can be a good deal for the right price!
Real Estate Rule #2 – Estimate how much managing the property is going to cost you vs. developing and selling it.
Real Estate Rule #3 – Buy only quality properties in which you’d be comfortable living in.
Real Estate Rule #4 – Don’t fall for the infomercials that will “tell you the secret to real estate riches”. It’s a scam these strategies lead to burnout and bankruptcy.
Real Estate Rule #5 – Take it slow, buying and flipping or buying and holding (i.e. renting). Start with a couple of houses in your first year and getting a feel for how much it takes to manage real estate.
Real Estate Rule #6 – Consider joining or starting a real estate investing club along with other property owners.
Real Estate Rule #7 – Finally, diversify your real estate investments as much as possible.
Like any investment, real estate can make you wealthy if you know how to avoid the biggest traps. Being a long-term investor or developer in real estate is about understanding the rules that will keep you from losing your money.