5 Skills that allow you to Invest Smartly in Real Estate

What if there was a way for you to create Rs. 50,000 to Rs. 50 Lakh per month of real estate cash flow? Wouldn’t it be great if you were able to build your investing business so that in five to seven years, instead of working 40, 60, or 80 hours a week to earn this money, you were able to enjoy the cash flow without having to do anything?

In this article, we take a look at 5 essential skills every professional real estate investor needs to have.

1. Make yourself a Deal finding GPS

First and foremost, you need to find a seller who is motivated to sell. More than any other factor, it’s the seller’s compelling reason to sell, along with a perceived deadline, that help you get a great deal. Financing—the price and terms—are the second level of a winning deal. Getting a good rate of return on a deal requires either purchasing the property for cash at a steep discount or getting great financing terms.

It is the investor with access to the broadest and strongest repository of specialized investor knowledge who has the best chance of making big money investing in real estate today, and access is the key.

2. Frame a good foundation on high-return deals

You’ll need to determine how you will frame the deal according to the needs and situation of the seller, as well as how you will deal with the property once you have acquired it. In order to frame a winning deal, you must plan both your entry and exit strategies. The way in which you frame your property purchase is called your acquisition strategy.

When doing the cash deal, one important distinction is that the cash doesn’t have to be your own. It can either be your own or money that you borrowed from a third party, such as a bank or private lender. A cash sale is distinguished by the fact that the seller receives his/her entire payment upfront from you, instead of waiting for it over time.

3. Having full control of negotiating table

Building an emotional connection with the other side is one of the most important requirements in any negotiation. People like to do business with people they like. You need to create a sense of comfort for motivated sellers and help them feel comfortable sharing their emotional reasons for selling and the emotional needs they have for any solution you propose.

In order to accomplish this, you need to establish and maintain a high level of trust and rapport with the seller.

By solving a seller’s problem, you add value to the deal. It is almost impossible to do this if you cannot get the seller to tell you what their real problems are. To get a great deal, you need to uncover the seller’s true motivation and help him/her feel that motivation.

4. To create an instinct to pick out the right deal

A property really has two values—the resale value and the rental value. When you look at the Deal quick view, you want to check how the price and terms compare to those in the market. Keep moving forward with the deal if the numbers look good. Make sure you talk to the seller immediately if the numbers don’t make sense.

Indecisive people don’t get good deals. There are many people who “think a deal to death.” The best way I know to lower your anxiety is to move forward provisionally with a deal.

5. Comprehending talks and signs of real estate

You don’t have to become a real estate attorney or even a title company nerd to move through the world of real estate safely and profitably, but you should know the language of real estate to navigate it intelligently. It’s been said that the language of science is math. Contracts and industry-specific jargon constitute the language of real estate. Encumbrances, deeds, mortgages, encumbrances, conveyances, and the like are all part of it. Please don’t let any of this intimidate you.

Utilize the above 5 Skills and cultivate them through your upcoming deals till you reach the point when you can find a potential deal that reaps high returns way long in the future.