Interview with Lisa Vander, Author of The Real Guide to Making Millions Through Real Estate, Part 2
Here's part two of my interview with Lisa Vander, author of The Real Guide to Making Millions Through Real Estate. Today Lisa offers us some very useful and practical tips on how to think about investing in real estate:
Free Money Finance (FMF): Can anyone make millions in real estate? If so, what are the keys for the average person to be successful in doing this?
Lisa Vander (LV): Yes, everyone who is willing to stretch themselves and be out of their comfort zone. People who make millions in real estate have to put in time, energy and money to make real estate investing work for them in the long haul.
There are six keys for the average person to be successful:
1. Have a winning attitude: Be positive and get good advice from people who have succeeded in real estate investing before you.
2. Have a solid Real Estate Plan before you spend your capital. Know what you are targeting and where you want to go so your decisions are driven by your plan first.
3. Spend money on education so you know what you are doing before you make snap decisions and lose money by not knowing enough. Education is the best money to spend to secure real estate success.
4. Have a clear understanding of how real estate works in different markets. Learn how to identify key economic conditions and market cycles so you are prepared to stay in long term regardless of changing market conditions.
5. Evaluate your real estates performance each year according to your plan. Evaluate how your property is performing so that you can make adjustments and decisions on how your equity is working for you.
6. Know when you have met your goals and objectives according to your plan and begin to live the life you have always wanted by being financially free.
FMF: What about the risks and pains associated with buying real estate such as it being an illiquid investment?
LV: Real estate is not for the person who wants to put money in for a short period of time. Real estate performs best when used for long term investing. The best part about real estate is that it performs for people over time.
FMF: It takes lots of time/effort to buy/manage/sell. Should these be concerns for potential investors?
LV: Yes, real estate is not for people who are not willing to do some work to manage their growing wealth. Real estate does not have to be as hands on as people think. A successful investor needs to use their brains and think things through by working on their goals. Real estate investing pays off because you have the ability to increase the rate of return on your investment but it requires being more actively involved than other investment opportunities.
FMF: Dealing with tenants is a hassle isn’t it?
LV: Yes, dealing with tenants is a hassle. That is why you should let someone else handle it for you. My most successful investors do not handle their own property management. The wealthy learn to manage the managers. Let the property manager handle the problematic tenant.
FMF: Don't you need a good amount of money to be a real estate investor?
LV: Yes, you need money to invest in real estate and occasionally have money for repairs and unexpected costs. Getting money is usually not an issue in today’s economy. It is more important to learn how to manage your money by making sure the investment you made is good for the amount of money you have and your financial position.
Beginner investors can start with as little as $3,000. They will start small and grow to larger properties as they develop their skills and equity over time.
FMF: Don’t these various "difficulties" turn people off toward investing in real estate?
LV: No, more and more people are choosing real estate as their investment alternative. People like the rewards that real estate offers. Real estate investing is not for everyone. But for those who choose to use it and use it effectively do very well by Making Millions through Real Estate.
FMF: What advice would you give people who are looking to make money in the current real estate market given that prices are likely to fall?
LV: Make sure you know how real wealth is made in real estate over time. Wealth is not made in real estate by price or appreciation alone. People get the benefits of owning real estate through cash flow, loan reductions and tax benefits. Focusing on these other benefits will show the investor why real estate investing can still be good when prices are naturally declining.
The ability for investors to leverage their money is also powerful in the growth of a real estate portfolio. This is not available in other business opportunities the investor may be considering when deciding how to grow their money.
FMF: Why should people buy The Real Guide to Making Millions through Real Estate?
LV: This book will give the investor a “How to Guide” to making millions that increases the probability of creating financial security for themselves. This book is designed to inform, motivate and keep people on target. Staying involved and learning real estate makes willing people very successful over time.
------------------------------
As you may be able to tell from some of my questions, I'm often skeptical of books on making money in real estate. They seem to promise the world but often are nothing more than 250 pages of hype. This one, however, seems to be different, at least from what I can tell from this discussion to Lisa. She seems to have a balanced and realistic approach to real estate investing and, as such, I'm really looking forward to reading her book.
What does "education" mean in this context?
Posted by: Foobarista | September 15, 2006 at 05:02 PM
Some books are hype, thats true. But for the most part, the person reading the book holds the key yo making something happen or not. Real estate programs, books, coaching etc. get a bad rap- and althought much of it is justified, people need to point the finger back at themselves. Instead of the skeptikal attitude, how about one that says, "I can do that.' And then move forward learning more about how, instead of making up reasons why not to. Something like 1% of people take action based on these kinds of books and programs. SO you make a mistake along the way? We all do- you learn, you surround yourself with people who have done it, and you keep moving forward. Just a nickel's worth of free advice from a girl who does take action on what she reads! lol
Posted by: prlinkbiz | September 17, 2006 at 02:03 PM