What does it take to be a successful real estate investor?

What does it take to be a successful real estate investor?

By Larry Goins

I am often asked what does it take for one to become a successful real estate investor. After years of investing personally and training students, I have a pretty good idea in my head what one needs to bring to the table to be successful. More than what a potential investor brings to the table, is what they are willing to do once they get to the table that contributes to their success.

A solid real estate investor is not a gambler. You have to be a wise long term investor, not a short term speculator. When you invest in a property you need to be investing in properties that make financial sense when you buy them not sometime in the future if the stars line up correctly.

A successful real estate investor is willing to become educated in real estate. If you aren’t learning, you are speculating. To be successful you must work with successful coaches and mentors who are doing what they teach. If they are telling you to buy one sort of property then they should be buying it as well. When you enroll in someone’s coaching or mentoring program, such as my Inner Circle, you should be paying for results oriented training, not just advice.

A long term successful investor is investing in relation to their financial goals. Whether you want financial freedom, retirement, or out of the rat race - you need to buy and sell real estate in a manner that is true to your goal. Don’t amass countless rental properties if you aren’t inclined to manage properties and tenants. Don’t by properties requiring rehab work if you aren’t planning to rehab or resell to investors. Buy properties that are in line with your investing goals.

A prudent real estate investor understands that anyone who is selling anything needs to be working in a marketplace where there is demand. Real estate investors are successful because they are willing to provide a universal need – housing – rather than marketing ice to Eskimos or cars to the Amish. Populations are growing. Housing will always be in demand.

A wise real estate investor doesn’t hand over control of their finances or their properties. If you work with a property manager or a broker or a partner you must know who you are doing business with and only do business with people you can trust. Greed, poor ethics, and lack of knowledge will drive you out of business in a heartbeat. Eliminating layers of management between you and your investment protects your money.

A conscientious real estate investor never borrows money that can’t be paid back by tenants. In other words, whether you are borrowing to flip, to rehab, or to rent you don’t want to get in over your head with loan repayments. If you can offset $2500 per month in loan repayments with $2500 per month in rental income, then do not borrow more than can be paid back comfortably within that window. It is perfectly acceptable to borrow money. You know I am all about buying and selling even with no cash, credit, or experience. But I don’t advocate getting in over your head. Remember, you can always sell the note on a rental or lease-to-own property and get your cash out to pay off your loans.

A sensible real estate investor stays diversified. Don’t purchase all your properties on the same street, in the same neighborhood, or even in the same city. Be prepared for market variations, natural disasters, plant closings, etc. Don’t put all your eggs in one basket.

A successful investor focuses on tax break assets. Write-offs and deductions are as good as money in your pocket. Rental and income properties are one of the most tax protected assets you can own. And they offer a great write off and deduction for the wise investor. http://www.StimulusOpportunitySecrets.com. />


Larry H. Goins is not only licensed as a mortgage lender and mortgage broker in North Carolina and South Carolina, he is also licensed in both North Carolina and South Carolina as a Real Estate Broker and General Contractor. He is a member of the North Carolina Association of Mortgage Professionals and a member of the National Association of Mortgage Professionals. Larry has been investing in Real Estate for over 20 years.

In the past, Larry has served as President (2003 & 2004) of the Metrolina Real Estate Investors Association in Charlotte NC, a not-for-profit organization that has over 350 members and is the local chapter of the National Real Estate Investors Association.

Larry is an active real estate investor and travels the US speaking and training audiences at conventions, expos and Real Estate Investment Associations on his strategies for buying 10-15 properties per month without ever leaving his office. His new home study course, The Ultimate Buying & Selling Machine! has been a HUGE SUCCESS and the testimonials keep rolling in!!

Between speaking engagements and mentoring other Investors, he oversees the daily operations of Investors Rehab, Inc., of which he is a co-founder and officer. Investors Rehab, Inc. is a real estate investment company that buys and wholesales 10-15 properties per month to other investors at 70% of ARV.