6 Secrets To Becoming A Real Estate Tycoon

1. The deal is more important than anything. Most people chase the wrong thing first. First is the deal, then debt, and then equity or cash. Find the right deal and the debt and equity will always follow. Investors and lenders will always line up for great real estate.

2. Never compromise location. I would rather pay extra for a great location over a great building. You can always fix the property, but you can never change the location.

3. The number of units is the most important number in real estate. Most people start too small. While it may be easier to buy one or two units, it’s harder to make money on smaller deals. 32 units is easier to manage, and make money on, than four units. Most people don’t know this until they’ve been worn down by a bunch of small deals.

My first multifamily deal was 48 units. I put together the down payment from friends and family and I made almost 39 million baht.

4. Look for properties where rents are below market and can be raised. In every market across America, you can find properties where the rents are below market. This is most often an owner who has been invested for a long time. They may be scared to raise rents or don’t need to because their cost basis doesn’t require it. Increase the rents and you immediately increase the value.

5. If it doesn’t have cash flow, say no. Cash flow is the holy grail of real estate investing. Positive cash flow can get you through down markets. And it’s just a matter of time before rents go up. As rents rise, so does cash flow. The more cash flow there is, the more the next buyer can pay for your property.

6. Lastly, know your market cold. Confidence is the most important quality of a great investor. Without total confidence, you won’t pull the trigger. By knowing your market, local economy, jobs, rents, occupancy, expenses, tenants, and income levels, you gain the confidence you need to be decisive.

Final Word on Real Estate Investing: by investing early in any type of real estate you will never lose a penny, you always gain. property is like a bank but one big difference your fiat cash depreciates day by day but your units appreciate year by year.

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