Patience and Making Money in Real Estate

When most people commence in the investment of real estate, they do so with lots of fervor, but they become disheartened after failing to achieve their instant fortune. After discovering that they cannot acquire riches easily and quickly, they move to a different investment scheme. A common mistake such investor make is learning several tricks and assuming success is granted.

Another mistake that is commonly made is seeing a different person’s instant success and assuming you will achieve the same results. This hardly happens in reality. Despite having good plans, people fail due to lack of the required effort for achieving their goals. There is so much work required in achieving real-estate success in the long-term, and that is why only few people accomplish it.

The Starting Goals Can be Lofty but Reasonable.

It is great to think big, but most people cannot help cringing whenever they overhear someone saying that in their first year of real estate business, their mission is to acquire one million dollars. Although everyone loves dreamers, there exists a line between delusions and dreams. Someone with a yearly income of 50,000 dollars but with no previous experience in the business of real estate can hardly make this sort of money in a year’s time.

What sort of expectations would beginners find realistic? The ideal approach is setting long-term, intermediate and short-term goals. It is important to ensure that these goals are attainable, specific and realistic. This is an outline of how these goals may appear:

• Fifteen years goal: Retirement benefit of a monthly passive income of 10,000 dollars. This requires between three and four million dollars in a free and clear real estate rental.
• Five years goal: Acquire 3 or 4 million dollars of real estate in areas that are steadily appreciating. Flip, fix and buy fiver properties every year at 20,000 dollars average profit to replace the current income.
• One-year goal: Wholesale 2 or 3 properties, flip, fix and buy 2 properties at retail and acquire 3 rental properties for keeps.
• Six-month goal: Do 2 or 3 wholesale flips and buy 1 rental property.

To avoid personal setups where disappointment is certain and financial disaster imminent, the dream of being a millionaire overnight must be forgotten. It is better to focus on the route that is slow but steady while aiming at wealth accumulation systematically with a single deal at any particular time. Assistance should obviously be sought from experts who are qualified and active in this business. Avoiding most of the mistakes on the road to riches ensures that the destination is reached much faster.