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Minnesota Real Estate Investors Think Smart! March 24, 2008

Posted by minnesotarealty in Minnesota MLS Listings.
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Several years ago, with regard to dieting, periodicals would tell you to “think thin.” They were reluctant to actually explain how exactly this was done, but everyone knew they were supposed to do it. Adopt the psychology of the thin, whatever that was. It follows that, if you want to make money, one should be able to accomplish that goal by adopting the mindset of the rich, right? As a matter of fact, this does work. In particular, you ought to internalize the mindset of the successful property investor.

Successful Minnesota real estate investors see the world through an opportunistic lens. They constantly have their antennae up and ready. They position themselves in the way of information. They “walk the walk” of the real estate investor, in a manner of speaking. Because of this behavior, they notice things that others do not.

Ken McElroy, writer of “The ABCs of Real Estate Investing,” which is part of the Rich Dad book series, says it’s all about noticing patterns. If you check out enough pieces of property, study enough areas, speak with enough people, McElroy said, you will start to see these patterns. Then things will start to change. You may start to seem lucky. And, McElroy says, it may be luck, but it is a sort of luck that comes from being prepared.

Remember the axiom: fortune favors the prepared mind. Opportunity is all around us, but if we don’t stay alert, it will seem as though it doesn’t exist. The prepared mind notices opportunity.

McElroy emphasizes repeatedly that becoming a successful property investor is a process. It isn’t an event that occurs instantaneously. It is something that you do each day. Eventually things begin to happen for you.

Someone who is successful focuses on doing a little at a time, on learning one subject or another, or closing this particular deal. It is a “walk before you can crawl” process.

For example, McElroy says, if you have found a good deal, you will be able to get the necessary funds as others will inevitably want their own share of the eventual profits. This is not about negotiation skills necessarily, he said. Of course, skillful negotiation can get you an even more advantageous deal at times, however you don’t need to worry about whether you can hold your own at the negotiation table. Just look for good deals.

Though investors are always considering risk, constantly aware of it, successful investors aren’t scared off by it. They determine whether or not a risk seems reasonable. If the numbers add up, says McElroy, then it is a good deal. If it’s a good deal, the smart real estate investor goes ahead with it.

Simple.

People who don’t understand how to accurately assess risk may believe every deal is too risky. They make the assumption, for instance, that a larger deal involves to great a risk for a beginner to deal with. They make that assumption because they think the investor is sinking a lot of personal funds into the deal when, in reality, a bigger deal has the potential to generate a larger sum for those involved. Therefore, you may be able to get backers for this sort of deal. In the end, not need to put up as much of your own money as you would’ve on a smaller deal.

Real estate investment is similar to anything else you might want to learn. For one thing, you first have to learn how to do it. And you learn by doing it. Go out and examine properties. Visit cities as if you had the intention to make a purchase. Log on to the Internet and read about areas. Check out what other people have said about the real estate climate a particular area. Get to know people. Before long, you’ll have learned enough to begin thinking about making a deal. You do not have to have a stack of cash at your disposal before you start playing the game. All you have to do is get out there and enjoy the process. Search the MLS Minnesota for free to find investment opportunities and everything else will come in time.

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