Because Of This, Education Is Critical At This Level

Category: Finance, Real Estate.

If you have been investing in real estate for any length of time, then you have undoubtedly faced frustration, hit some highs and then crashed into some lows!

True financial success is achieved by combining these two elements- cash flow and wealth creation, or net worth. Ultimately, your goal as a real estate investor is most likely to generate immediate cash flow and long term wealth and increased net worth. Cash flow is considered as the monetary profit that is earned every month to support your lifestyle. Three levels of real estate investors are as follows: Level one Investors- In this level, the investors learn the basic tricks of the real estate investment business, and they use it to make real estate investment a profitable venture. This can also be used to invest in assets that may later appreciate in value. They learn this by making their initial deals profitable.

They are aware that there is much to learn from this vast field, and they try to understand it. Thus, Level One investors ensure that real estate is the path to economic success. Real estate investors at this stage should spend time learning the business, evaluating the details of the deals, and make sound decisions. There are two main reasons why investors fail at this level: (1) Fear and( 2) Lack of Knowledge. Often times, this will involve some level of training or coaching to ensure success. Because of this, education is critical at this level.

Second level Investors are those investors who generate a monthly cashflow ranging anywhere from$ 5000 to$ 60, 000 per month( depending on location, etc, market conditions. ), and also add an average of$ 250, 000 to their net worth per year. Level Two Investors- At this level, investors master the five core real estate business skills and also maintain a real estate portfolio. Some investors have a wrong notion that after reaching the second level they have achieved it all. The biggest pitfall that investors at this level tend to fall into is that they get" comfortable" . They do not realize that there is so much to achieve down the investment line, and that the benefits are worth their exertion. As soon as you are comfortable, you stop stretching and learning.

These investors practice negotiating tactics, refine their marketing strategies and learn advanced strategies like note buying, triple net lease investing, etc. Level II investors that excel are those that are constantly adding new weapons to their arsenal. Level Three Investors- Level III real estate investors build a small fortune in such a way that they earn the majority of their income through passive methods. Their not out meeting with sellers night after night, sitting at open houses on Sundays, etc. At this level, investors are generally not working in the day to day grind of the business. They have effectively learned to make their money work for them and are using their assets to acquire other assets. Often times, level three real estate investors will branch out into other businesses and create additional streams of income.

For example, instead of rehabbing houses at this stage, level III investors may lend hard money to Level I and Level II investors! Often times, their income may be similar to a level II investor, they just simply don t put in the same time, money and effort. In order to become a Level III investor( which is what most real estate investors envision when they get started in the business) , there are a few basic steps that will help you move through the stages. They have mastered advanced techniques are also utilizing leverage. But first off. you must realistically evaluate where you are in your business right now. Level I to Level II: Level One real estate investing is about learning the basics of real estate investing. Once you have determined that, you can follow these steps to advance your business.

There are three hurdles you may need to cross to get to Level II. Pick up the phone and call sellers. Take action: Stop" thinking" about real estate and start" doing" real estate. Drive different neighborhoods and learn the communities. Find a mentor: It is critical that you find a real estate mentor, advisor, tutor, etc. that can help you succeed in the early stages. Attend networking events and trainings with other investors.

This person will not only teach you the mechanics, but will also help answer your questions and move you past the fear. Initially, it may be a tough nut to swallow, but long term, it s essential to your business. Invest in your education: You ll find that the most successful real estate investors never stop investing in their real estate business and their education. There is but one small caveat. You see, what worked just a few years ago, is not working the same way today. You need to invest in CURRENT education. You need the most up to date information as it comes down the pike!

At this stage, you will begin to master the core skills that are critical to long term success in your real estate investing business. Level II to Level III- Once you ve gotten the basics down and you ve done a few deals, you re ready to advance to level II. These include: Find motivated sellers consistently, keeping your pipeline full with deals Master the art of negotiation Evaluate deals quickly and take fast action Diversify. Level III- It s time to take all of your knowledge, and proven systems, experience, and leverage yourself. It s time to start adding lease options, wholesale flips and, rentals retail flips to your profit pipeline. It s at this stage that you re ready to venture out into additional streams of income and let your business work for you! This is the level at which most people begin to teach other investors, and to make, to create systems money with their information!

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