The Mind of the Real Estate Investor

Myself and many others are living proof that by changing your mental and physical habits, you can build your wealth. This mini-course focuses on changing or fine-tuning your mental habits and attitudes toward real estate investment so that you can profit at will. It’s about getting your mindset right.By mindset, I mean your way of looking at, and approaching your real estate investment business. This includes the way you perceive your business. It also includes what you allow to impress and intimidate you, also what challenges and excites you.Note: This article is the introductory session in a soon to be released mini-course entitled “The Mind of the Real Estate Investor” and the full course will soon be available to Rehab Real Estate Central (http://www.rehab-real-estate.com) newsletter subscribers. This course will be a free service of Rehab Real Estate Central.Why bother with “mindset?”Simple. Because the cost of NOT adjusting your mindset is outrageously expensive (in opportunity loss)! If your mind isn’t conditioned to think like a wealth-building investor, you are like a sailor paddling around in a boat with holes in it. If you bail water quickly enough, you’ll keep it afloat, but you will eventually tire…and sink!ALL money-making endeavors begin with a thought. They are all ideas born in the mind of an investor. Some have more and better ideas than others. Why is that? Are some minds better conditioned than others? I say “yes!”In our society there is often resistance to conditioning one’s mind, but nobody thinks a thing about going for a jog, or hitting the gym to condition their body. Does that make sense? If you walk the entrepreneurial path, mental conditioning is central to your business.The six concepts that I will unfold in this course are powerful weapons of the mind. If you condition your mind to these concepts will make you a lot of money, and you will KEEP making a lot of money.Simply put, if you don’t develop, and then fine tune your mindset you will either:- Never quite get around to investing in real estate (if you have not yet begun) and forfeit the wealth you want to attain for you and your family.- Never quite get where you want to go in your investing (if you are already investing), and forfeit the wealth you intended to attain for you and your family.You see, a lot of people have enough knowledge to invest in real estate. Far fewer DO it. Why is that? Because far fewer have bothered to develop the mindset that conquers fear and other hurdles to investing in real estate. Frankly, it doesn’t matter how much knowledge you possess about investing in real estate, you WON’T do it if you haven’t conditioned yourself to think like and investor.Usually I write and teach practical matters of rehab real estate investing, but for this course, I’m breaking from that in favor of talking about what you can do to adjust your thinking…change the way your mind works. Since the investing won’t be successful without a properly conditioned mind, it can be considered the most important aspect of learning to be a real estate investor!Mindset is the foundation of real estate investment. In other words, if it’s not solid, you cannot invest successfully. I don’t know how to put it any plain-er.I’ve known scores of folks who have WANTED to invest in real estate. These are usually acquaintances who find out somehow that I invest in rehab real estate. Invariable I here, “I’ve thought about doing that.” Sometimes I hear “I looked into that.” Sometimes they proceed to ask questions, but I find that most of the time the next word after the previous phrase is “…but” and then I hear an excuse.These excuses range from “I couldn’t find any property” to “the numbers scared me” to “I couldn’t get a mortgage.”What I’m thinking to myself is “these excuses have solutions, but they don’t yet have the mindset to overcome these relatively minor hurdles.” In fact, unless someone ASKS me for specific advice on overcoming these hurdles, I don’t offer advice. That’s not because I don’t want them to succeed! It’s because their mindset is not yet right.Let me tell you where I’m coming from on this topic.My mindset was screwed up for 10 years! I was a real estate guru junkie! For a decaded I consumed every book about real estate investing on the market, attended seminars, and bought courses. I had “book knowledge” running out of my ears with ZERO property.Finally, one day I realized that I was about to “retire” from the Navy, I REALLY didn’t want to get a job, and my family still liked to eat! I changed my mindset, and put thoughts into action. The rest is history. What changed? Not my knowledge! My way of thinking changed.Facing the end of my Navy career was the catalyst that got me started. If you haven’t started, there IS a catalyst in your life, you only need to find it and capitalize on it. Are you satisfied in your job? Want more time with family? Want more disposable income? Want to build your retirement savings? This list could get long!This course is aimed at helping you capitalize on your action catalyst by developing your real estate investor mindset.For those that are already investing, this course will serve to fine-tune your mindset to make you more profitable. The VERY SAME mindset ideas that make people launch successful real estate investment careers are the ones that keep investors successful over their real estate investing careers, be it 2 years or 20.Let’s get started!

11 Things You Want in Real Estate Investment Software

Real estate investment software is one of the best tools real estate investors and professionals can use to analyze and evaluate multifamily property.Here’s why.Good real estate investment software provides the forms, makes the computations, and creates the reports required for a real estate analysis. Any user (experienced or not) can create professional-quality rental property reports for a myriad of reasons, such as decision-making, or as property presentations to buyers, sellers, colleagues, partners, or to lenders. All within minutes.Moreover, real estate investing is all about the numbers. Therefore, real estate investors who are considering real estate investment opportunities look for and make their investment decisions based upon the bottom line. So real estate investment software becomes an essential tool for real estate analysis because it provides quick and concise cash flow, rate of return, and property valuation numbers.Though most real estate analysts prefer to buy real estate investment software, it should be pointed out, though, that you do have other options.You can, for instance, scratch out the numbers with a pad and pencil, or perhaps make a hasty rule-of-thumb calculation off the top of your head. But it should be obvious that these approaches, although maybe useful in limited cases, do not provide the best solution. They clearly do not provide the deep property analysis required to make a smart investment decision, nor do they include the data likely to sway the opinion of any other person, entity, or institution like a partner or lender.You can also use Excel and develop your own spreadsheet. The problem here is time. It takes countless hours to embed the computations properly, and to format the forms and reports, even if you’re familiar with Excel. If you’re not familiar with Excel, then triple the time.Before you pursue those options, though, be mindful that successful real estate professionals do not waste time or effort reinventing the wheel. They prefer to invest in real estate software so they can spend their time generating moneymaking deals.But I digress. So let’s get back on topic and look at what you should expect in good real estate investment software.1. Easy to learn and use – You want simply to enter the values and have the software do the rest. You never want to look and wonder, “What do I do next?” To check, examine the website. Remember that the same company praising their software publishes the website. If the website is not well organized and informative, or if its lack-luster and confusing, the software might not be what you want.2. Unlimited units – You want the ability to analyze one unit or a thousand units, or even more units if necessary.3. Loan amortization – You want ample control over the financing assumptions. For example, you want the ability to enter multiple loans, the flexibility to enter the loan either as a loan assumption or as a new loan, and then have it computed as either a fixed or interest-only rate.4. Crucial rates of return – You want the real estate investment software to calculate cash flow returns and loan ratios such as cap rate, gross rent multiplier, cash on cash, operating expense ratio, net operating income, debt coverage ratio, loan-to-value ratio, break-even ratio, and profitability index.5. Tax shelter computations – You want the ability to determine cash flow after tax as well as your tax benefit or loss. To do this, the real estate investment software must include computations for tax shelter elements such as cost recovery and mortgage interest.6. Time value of money – You want the software to create computations involving the time value of money such as internal rate of return and net present value. Why? Because you will discover that in real estate investing, the timing of cash receipts can be as important as the amount.7. Concise, top-quality reports – You want printable reports that are easy to read and have eye-catching appeal. Remember, you might be trying to influence the opinion of a buyer, seller, colleague, or lender regarding this property, and they might have to make their decision based on the reports even before seeing the property.8. Upgradeable versions – You want the ability to “upgrade” from a less-than-platinum-grade-version to a platinum-grade-version without having to re-purchase the platinum-grade version at full retail price.9. Technical support – You want to have open access to tech support in the event of a question or problem. Preferably, email and telephone support . Exercise caution if the company or developer appears overly allusive–there is nothing more frustrating than encountering a problem and then not being able to talk to the software developer about it.10. Affordability – You should be able to find very good real estate investment software on the web for about $300. Which is very affordable given the fact that you will be able to start working with income-producing property immediately.11. Customer satisfaction – You should examine the names, professions, and titles of customers who have submitted a testimonial. If you can relate, then you may have a winner.There are other things you want real estate investment software to provide such as seamless printing, picture function, branding and name-rider integration, email capability, help file, Windows compatibility, and so on. The point is not to be hasty. Spend time on each website looking around to be sure you get the essentials and perhaps a little extra at the best price possible.