By Pierre Clark
There are five key concepts everyone interested in being a successful real estate investor should remember and follow:
1) You make or lose your profits in real estate the moment you sign on the dotted line.
The purchase price you pay is the key to whether you win or lose on any real estate deal.
2) You must have an exit strategy for every property you purchase
- that is, ask yourself: “If I had to sell the property tomorrow, could I sell it at a profit?” Short sellers make their money off the majority of people who buy a property at the wrong price and find themselves facing foreclosure when they can’t cover their expenses and meet the mortgage payments.
3) Properly structuring your real estate investment activities is the key to maximizing gains
and minimizing losses and exposure to liability. If you’re still buying property as an individual and not through the proper corporate structures, you’re putting yourself and your investments and strategies at needless risk.
4) No one ever went broke making a profit.
The name of the game in real estate is earning a profit. If you buy a property for $5,000 and sell it for $10,000, that’s a 100% profit. If you do that 20 times, you’ll have $100,000 cash profit in your pocket. (See concept #1 above).
5) Organizing and using a network of professional advisors and experts
doesn’t cost you anything – because the profits their knowledge and expertise bring you are usually five times whatever the fees you pay them.
Remember, a dream without a plan is just a fantasy(tm). Till next time…
Pierre A. Clark is Real Estate Investor and Business Development/Financing Consultant for Urban Info LLC. He can be reached at 312-473-0373 or
e-mail: investsuccess@sbcglobal.net
T hanks for publishing this piece once again. I have received a lot of positive feedback from it. I'm consciously striving to follow my own advice in my new ventures and am enjoying the opportunities afforded by a career as a real estate investor and developer. I would add that these principles seem even more appropriate in light of the current state of affairs in our economy today. I did want to update the phone number in the article. Anyone with questions can call 312-473-0373. Pierre Clark
Pierre,
Thank you for being a contributor. It is because of professionals and investors like yourself that Invest With Passion has the practical and useful information to deliver to our readership.
We have to get you back to writing regularly, so the people can really get into the information and understanding that you have. So, let's work to get you back into the writing folds. What do you say?
Thanks again!
I'm working on a follow-up article now and will post it shortly. Also will be doing some outreach workshops and seminars and hope to reach out to people through Invest With Passion. Been a little preoccupied with death in the family the past week but look forward to being a responsive contributor to your great site – I've found a great deal of useful information here. BTW, what's happening with the Investwithpassion.net online community?
Just bought the book The Millionaire Real Estate Investor. Am reading it now, thanks to the great article in IWP. Will post a review and comment soon.
Will be posting a series of ten articles from the new e-book: "Creating The Million-Dollar Investment Company", starting in January 2009 exclusively here on Invest With Passion's website. The free 128-page e-book will be available exclusively from Invest With Passion's Website starting in January 2009. Yes, you can make the dream happen, I'm doing it and will document it for you step by step in my new e-book. Barack Obama proved the power of belief and faith that works, and I'm dedicating my e-book as a tribute to Barack Obama showing the way for all who desire to make their impossible dreams a reality.
Happy New Year! Remember what Bill Campbell of ABC's "Chicagoing" says, "It's an inside job, YOU DECIDE to make it a great day." Same is true of your year or your life. All you'll accomplish depends on what you plan and believe you can! With that thought in mind, I'm following up on my pledge to create and introduce my "Creating The Million-Dollar Investment Company" this month! Currently, I'm developing not one but two investment companies and a multi-million dollar investment fund! My e-book will detail how I'm doing it, step by step, the successes and setbacks, every action and move I'm making. Stay tuned and stay alert, watch this space for more details, because what I want to provide are insight, information and inspiration for all those who believe in the dream!
UPDATE: A multi-phase, multi-million dollar development in Chicago's West Englewood community. Three donated properties developed with government and private funding. A financing package for a 12-unit building. Faith-based development project with new homes and a senior citizens building. A multi-million dollar medical dialysis center. A development fund for investment in abandoned, foreclosed properties.
These are a few of the projects my development company is leading and establishing. You can make it happen! Anyone who wants to find out how and work with me, call me at 312-473-0373 24 hours, fax me at 312-253-4460 or e-mail me at pierre@urbandevelopmentunlimited.com.
"Creating The Million-Dollar Investment Company." We're still working on it. It works if you work it. Keep following us.
Pierre A. Clark, Director, One Englewood CDC
Coordinator, Woodlawn Development Collaborative LLC
Managing Partner, Urban Development Unlimited LLC
312-473-0373
Fax 312-253-4460
E-Mail: pierre@urbandevelopmentunlimited.com
Pierre,
I look forward to keeping up dialog with you, also hearing more about your company.
Contact me anytime at: orlando@patrickdevelopmentgroup.com
Orlando Patrick
Patrick Development Group