Real estate investing is a wonderfully lucrative,Are You an Investor or a Gambler? Articles empowering and life changing venture.But it needs to be approached with the right mindset if you want to realize success.We have worked with hundreds of investors over the past few years.Many of them have not received the results they wanted – either on their own or with other Real Estate Programs.When we sit down and review their Investment StakeOnline Casino,we frequently see that their overall approach to Real Estate Investing needs to be adjusted.
All too often,we determine these individuals view Real Estate Investing as a gamble or a game of chance.In reality,Real Estate Investing can be as stable and predictable as opening up a world class franchise.The key is to focus on the right things.
Outlined below are a few questions you should ask yourself to help determine if you’re looking at Real Estate as a gambling venture or an investment business.
Most casino games are in fixed rule environments – there are set inputs and outputs.And the rules themselves are skewed to the Casino.Because there are only so many results that occur from blackjack or craps for example, you can only win by devising a strategy based on probability and betting theory.Without the strategy,it’s just expensive entertainment.Even with the strategy,you will be lucky to break even.
There are parts of Real Estate Investing that are even riskier than a night in Vegas.After all,you can lose more than you bet.If you have to foreclose on a house or pay back taxes,or several other unforeseen events, you’ll be out more than you invest.This is because Real Estate is not a fixed input/output system.There are a tremendous number of different things that can occur in a Real Estate Investment.
But unlike those casinos, you can use the “rules” to actually help you win more than you lose.
Remember,you have a very strong level of control over the performance of your investment,especially if you focus on the Cash Flow benefits of a property.While you can’t change the market and you can’t change (or very rarely) the available team,you can change the rehab level,tenant selection criteria,rents,marketing,tenant management, etc, etc.This control creates a level of safety and wealth if applied correctly.
If you research the right metro areas with the right fundamentals and if you research and find the best teams (acquisition,rehab,management,legal), you will have significantly decreased your risk.Research trumps probability mainly because a good property in a bad area is still doomed,but a bad property in a good area can do pretty well.