5 tips to keep you in the Real Estate business.

Holy Crapperz!  I’ve talked to three of my closest real estate buddies and all I heard was NEGATIVE crap.  With the current market conditions I think it’s time for some ideas to keep your head in the game.

I make my living investing in real estate.  That means good and bad times alike I have to stay focussed to be successful.

Three years ago being in real estate was quite an easy job.  Basically it went like this:

• Locate Property
• Get a Contract
• Buy
• Fix
• Sell
• Rinse and repeat.

This is ALL you had to know to call yourself a real estate investor.  You didn’t need any kind of knowledge to get in the game.  All you needed was a few dollars (none of them had to be yours) and a mortgage broker.

My how things have changed.

Today you need to be quite savvy to survive this rotten market.  You need to have multiple exit strategies before you buy and then you need to have a back up plan if your exit strategies don’t work out.  If you’re not buying in the right area for your pre-determined exit strategy you will loose your shirt.

These are five tips that I have used to stay in the game:

1. Your Team: Whether your  full time investor or a part time hobbyist, it’s important to know that you can’t be everywhere.  Team up with other professionals that will help you get your deals closed with minimal effort.  Right now my power team consists of two Short Sale negotiators, One buyers agents, One Real Estate Attorney, One accountant and the most important one, My title company.
2. Budget: Keep an eye on your bottom line.  Running a business costs money, so if you want to last you need to have an idea of your expenses.
3. Specialize: Stop spreading yourself thin trying the newest and bestest investing techniques that late night infomercials have to offer.  First decide whether your investing strategy will be short term flips, or long term holds.  In today’s market I recommend long term holds for cash flow if you want to survive.
4. Market, Market, Market: If no one knows what you do, then why would they do business with you.  There are so many homeowners in trouble these days that leads should be fairly easy to come by if you are marketing.
5. Plan: This is the hardest part for any business.  You MUST sit down and plan your strategies.  Everything from marketing for sellers and buyers to  your buying criteria and marketing budget should be mapped out before you get started.  If you know where your going, it’s a lot easier to get there.

Remember that Real Estate is a business.  You have to plan, budget, and execute if you want to succeed.

Now I ask you, what other tips do you have for anyone in today’s real estate market?  Share them in the comments section below.