Whether direct investing, crowdfunding, REITs or Collaborative SMART Investing, the 7 fundamentals laws of real estate investing remain the same:
Law One – Understand the Fundamentals & Invest in Yourself
It’s been said that ignorance is the difference between truth and perception. This adage also applies to real estate, when new investors excitedly pour capital into new, seemingly promising deals without a proper education on industry fundamentals. Relying on the advice of (well-meaning) friends and family is an inadequate education and often leads to losing one’s investment. (See IQ Pillar in the 8 Steps to Wealth through Real Estate Micro Degree – the starting point) Thankfully, the information age has made it possible for everyone to learn about investing in any asset class—but many may not know where to start.
To get started, here are a few excellent resources that will provide a solid understanding of building wealth through real estate investment:
· Think and Grow Rich by Napoleon Hill
· Rich Dad, Poor Dad by Robert Kiyosaki
· Real Estate Riches by Dr. Dolf De Roos
· Property Going Global, by Scott Picken
These books provide a good starting point, but it will be up to the individual to continue to build on that foundation and consider investments carefully before pulling the trigger. As with any asset class, the world of real estate is cyclical -what goes up, must come down, eventually. Investors should take the time to plan for all possible scenarios, diversify across multiple regions and industries, and avoid overexposure to real estate or any class of investments.
Law Two – Do Your Homework, take responsibility!
Full article here: https://www.linkedin.com/pulse/7-laws-real-estate-investing-scott-picken-%E9%BE%99%E8%88%B8/?published=t
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