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Real Estate Investing – Basic Principles

Real estate investment principles should never be forgotten whether you are new to the investing game or a proffessional.

You can grow your property folio by applying various strategies . These include investing in rental apartments, single family homes, industrial property, retail real estate, office space, hospitality or oversea properties . Within the property types you can become an expert in lease options, flipping houses, buying mortgagee sales or international investing . But these can never replace the fundamental principles.

There can be diverse strategies and methodologies for creating wealth through properties but the principles of property investing are eternal .

In my experience professional investors at times tend to become over confident and flout the basic principles . They invariably suffer grievous consequences . It is in your interest to understand and apply these basic principles to your advantage .

Fundamental Principles of Property Investment :
 

 * 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 the Math’s – Investing is about numbers
 
 * Always study the location. It should be easy to rent.
 
 * Buy properties only from motivated vendors

 * Use Other Peoples Money (OPM) to fund your investment property
 
 * Make Use of the Property Cycle to speed up your growth

 * Negotiate Everything
 
 * Knowledge of Real Estate Investing is the Key to Success
 
* 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 . An uneducated human will pass a property and find no merit 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 . Fear burns in the fire of knowledge . However, no one can reach a state of complete knowledge to overcome fear . You have to act in good faith and intelligence. inactivity will keep you tied to poverty . Once you start taking action your experience and self-assurance in property investing will gain ground.

Inaction will always lead to failure . I had no knowledge of real estate investing when I started out .My mentor was a very rustic real estate agent . He virtually pushed me into buying a boutique shop he was selling. . 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 was learning by taking action .
Apply these basic principles to the the extent you can. Experience will follow . Think big but start small. A few small steps will change the financial out come of your life .

Understanding and applying these basic principles are the key to 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.