In the Old Testament there is an insightful instruction: Be fruitful, multiply, and replenish…” These instructions are good for starting any business. You must first learn to be fruitful in whatever business that he choses BEFORE attempting to multiply. Many businesses fail because they try to multiply or expand before they are fruitful. It is a sequential order that must be followed. First be fruitful, then multiply, then replenish or subdue the industry you are in. In this case we are talking about real estate. So it is important to learn to be fruitful with one or two properties and then multiply. Once you learn to handle 5 then 10, then 20 properties then you can replenish and do it again. Below I have listed some practical steps that you must take in order to be successful in starting in real estate investing.
INVENTORY YOURSELF
• CORE COMPENTCIES
• PERSONALITY
• TOLERANCE FOR RISK
• DEALING WITH DIFFICULT PEOPLE
• MOTIVATION
WHAT STRATEGY WILL YOU USE?
• BUY AND HOLD
• FIX AND FLIP
• RENT TO OWN
DO I HAVE A GUIDE MAP?
• WRITTEN BUSINESS PLAN
• IDENTIFY COMPENTCEY GAPS
• DEVELOP A TEAM (CONNECTIONS)
LEGAL BEGINNINGS
• DETERMINE LEGAL STRUCTURE (SUB S, LLC, LP)
• REGISTER NAME
• GET TAX ID NUMBER
FINANCIAL BEGINNINGS
• INITIAL FUNDING?
• IDENTIFY INCOME SOURCES
• PRIMARY COST STRUCTURES
• BOOKKEEPING
Join me next week for more Real Estate Investing tips!!
