You probably won’t read about many fashion tips on this site.

But I felt compelled to share a small, but important detail when it comes to dressing for success in your pre-foreclosure investing business.

This property investment advice is directed toward those pre-foreclosure investors who regularly travel into target neighborhoods and meet with sellers.  We call it “door knocking pre-foreclosures.”

We’ve all heard the cliche, “you only have one chance to make a good first impression.”  But in our case, it’s not what you’re probably thinking.  In fact what I’m going to say may surprise you.

As a property investor, you do not want to impress other people by the clothes you wear out in the field.  In fact, your goal is to never make a fashion statement while out in the real estate investing field.

Experienced property investors know that when a seller opens the door he or she will relate to someone who looks just like them.  Your attire and appearance should “blend into” the neighborhood you are targeting.

Experienced investors know not to overdress.  Say for example you wouldn’t want to knock on a door in a middle class neighborhood in a suit and tie.

So what should you wear?  For starters, the goal should be to project a clean and professional image but keeping everything very casual.  Start off with a collared shirt (no T-shirts allowed) and make it a blue shirt.  I don’t know if you knew this or not, but tests have shown that blue is the most trusting color.   So why not choose blue?

As far as pants go, blue jeans or casual slacks are encouraged, but shorts are perfectly fine too.  Just make sure you (or your market scout) dress the part.

Do not walk up to the house wearing excessive jewelry.  If you’re wearing sunglasses, take them off when you get in front of the seller’s door.  When the seller opens the door, You want him or her to clearly see “the whites of your eyes.”  You can’t look someone in the eye if you’re wearing dark sunglasses.

Winning in this business comes down to doing the little things right every day.

Remember, you never have a second chance to make a good first impression.  Especially when you’re at somebody’s front door striking up a conversation about their foreclosure.

Also keep in mind as a real estate entrepreneur, you can delegate this task to a bird dog or market scout.  If you have the right system in place in your real estate investing business, delegating this task would be the next logical step.

Let me know what you think of this post.  I’m always interested in hearing from you.

When it comes to making money in the pre-foreclosure investing business, you will find all kinds of do’s and don’ts along the way.

The truth of the matter is that these are extremely useful whether this is your first residential investment property or you have been investing in real estate for years.

These are guidelines to help you manage your renovation projects more effectively.

Here Are The Guidelines:

1)      Always evaluate the neighborhood before you decide to invest. You will want to make sure that the property you are considering is a good fit for the neighborhood.  You should also take the time to make sure the exit strategy you have in mind for the investment property is a good fit for the neighborhood.  For example, you wouldn’t want to flip a house in a high crime neighborhood – it’s just too risky.

2)      You need to learn how to spend.  Experienced pre-foreclosure investors know where to spend money to affect a piece of real estate.  The goal a pre-foreclosure investor is to “get in and out” of a renovation quickly while increasing the property’s value and usefulness.

3)      Don’t forget to set daily goals and hold yourself accountable. If you don’t reach your goals for the day, your lack of discipline could jeopardize the the entire project.  Become focused and stick to your daily schedule in order to avoid these costly delays.

4)      Don’t neglect the small things.  Good curb appeal is what brings the most qualified tenants to your investment door step.  An investment property that looks run down from the street leaves the impression of being neglected on the inside and many potential applicants will never view the interior if the outside looks neglected.

5)      Don’t spend money unnecessarily.  Property investors who make the most money avoid costly expenses that aren’t absolutely necessary for the successful completion of a project.  Resurface bathroom fixtures rather than replacing them if possible and use new cabinet doors or hardware rather than adding new ones all together to cut down on expenses. In other words, salvage what you can, fix what needs to be fixed, and add a few cosmetic touches before moving on.

Real estate entrepreneurship is all about managing risk and only the strong survive.  The  real estate investing market can be unpredictable and often times very risky.   Learning how to navigate your business through those turbulent times is often the difference between financial independence and having to work 40 hours a week at a dead-end job.    And I’m not kidding.

My advice to you grasshopper is to take the road less traveled.  Be different and don’t be afraid to stand alone sometimes.  And by all means, always swim against the tide.

Why Are Real Estate Investors Different From Everyone Else?

Experienced pre-foreclosure investors didn’t just wake up one morning and decide to jump in the car and ride down to the local courthouse and review the foreclosure files.  These experienced and savvy property investors made the fateful decision to NOT follow the crowd and have profited handsomely from that decision.  Here are a few ideas for those of you who are new to pre-foreclosure investing:

1. Always Maintain A Commitment To Continous Learning

The more you learn, the more you earn.  These words of wisdom have tickled my mental fancy through many real estate investing trials and experiences.  Learning how to apply what you’ve learned to your pre-foreclosure investing business will be the difference between success and failure.  Real estate investing has created more millionaires than any other investment vehicle in history.

There’s a reason behind this track record of sucess.  You don’t have to re-invent the wheel.  Learning how to use real estate to build long-term wealth is directly related to how educated you are as investor.

And if you’re doing it the right way, your education never really ends.

2. Serious Property Investors Continue To Build Their Fortunes In Spite Of The Economy

The majority of struggling real estate investors think that you can only be a success in real estate when the economy is healthy and expanding.  For the chosen few, this is not the case at all with them.  Many fortunes were created in down real estate markets.  Today savvy pre-foreclosure investors alike are finding high quality properties at steep price discounts in just about every one of these “so called” down markets.

Remember this.  When something bad happens, something good happens too.  Experienced pre-foreclosure investors just know where to look to find these good things in their local markets.

3. Effective Real Estate Investors Are Resourcesful.

Everybody has money problems.  Most people have too little of it and the chosen few have too much.  Regardless of the situation, effective investors are great at finding solid investment deals and then quickly locating the needed resources.  That big resource for most of us is the money.

Don’t let the lack of money stop you from going out and doing more deals.  Trust me on this. Go out and find (and tie up) solid real estate investment deals and the money will follow.

The more experienced you are and finding good deals, the easier the money will flow to you and your business.

Your Real Estate Investing Education Will Always Produce The Biggest Returns

The greatest investment you can make is in your own education.  Especially when it comes to investing in real estate.  I started my education in 1998 by purchasing a “How To Manage Your Finances For Dummies” book from my local Barnes & Noble.

Little did I know just how profound that first book would have on my life.  The good thing about this first book is that it led to the second book.  And the rest I guess you can say is history.

In my case, one small book paved the way for my financial independence.  It can produce the same results for anyone who decides to invest in themselves.

Invest In Yourself Before You Buy Your Next Piece Of Real Estate

If you’re a new pre-foreclosure investor, it’s very important to find, digest and put into action the best information about real estate investing you can find.  All the good advice you need is readily available.  You just need to know where to look.

Learn From Other Investors Who Have Gone Before You

It’s one thing to learn from your own mistakes.  You can take your pre-foreclosure investing game to a completely different level when you learn from the mistakes of others.  For example, if you want to learn how to buy foreclosures and you haven’t invested in one before, there will be a learning curve.  The majority of struggling real estate investors forge ahead without the right knowledge and experience and they end up failing to make it in the business.

Make the decision to invest in your education.  And discipline yourself to make this same decision for yourself over and over again.  You’ll never regret it.

Whether you’re BRAND NEW to real estate investing or an expert in the game, it’s critical that you understand these 7 Simple Steps to winning in the real estate investing game.  Let me start this post out by saying that real estate is NOT a get rich quick scheme.  However, if you learn the fundamentals and put them into practice, you’ll make more than enough money to realize any and all of your dreams and goals.

Experienced Real Estate Investors Don’t Believe The Media Hype

The real estate bubble is not going to burst!  The real estate and pre-foreclosure markets will continue to shift and change – they always have.  What’s “cold” now may turn begin to gradually begin to grow over the next 3 years (or perhaps even 3 months).

But, there are ways to “bubble proof” your real estate investments.  It’s actually quite simple.

Did you know that in the United States, in 1975, the median home price was just $33,300?  And by 2005, the median home price was $195,000.  So historically, the average home in the United States has doubled every 7 years.

If you do the math, it should be well over $200,000.  OK… Now, having said that… The real estate market WILL change and what is “working” today in real estate may not in the future…  Just keep in mind that real estate is a cycle… and cycles have some degree of predictability.

With predictability, you can grow your real estate business into a cash-producing, profit-pulling machine that runs itself WITH the changing real estate market trends.  In fact, now is just as good a time as any to get started in real estate investing.  But, smart pre-foreclosure investors know they have to make wise investments.

Sure, you may make some SERIOUS cash in pre-construction, but what happens if (no, not if – when) the market shifts and there are suddenly 35 identical properties on the market for sale in the same building?  How long can you afford to carry a negative cash flow on the property?  Or how about taking over property ‘subject to’?

Sure, it’s a great strategy and lenders may be inclined to turn the other way and not exercise the “due on sale” clause as long as the interest rates are at rock bottom prices (You know, those sellers that you’re usually taking property subject to from usually don’t have the lowest interest rates, right?)  What this means is simply that real estate investors must be experienced in the fundamentals of the business – the tried and true techniques, strategies and systems that have worked in the past, are STILL working and will work in the future.

You’ve got to have all the tools in your bag so that you can go with the flow and not be affected when real estate markets begin to shift (which they are already in the process of doing, in case you’ve missed that memo!

Step #1 – Create A Plan To Win:

Figure out what your long term real estate goals are (aka retirement and wealth building) and figure out what your short term needs are with regard to making money in real estate.  Then, set up the proper entities and put the plan in place.

Buying investment properties has everything to do with developing and working a winning plan.

Step #2 – Determine Your Target Property:

You cannot be all things to all real estate markets. If pre-foreclosures appeal to you, start investing in that market.  If you want to be a landlord, look to out of state owners to focus your real estate marketing efforts.

Step #3 – Become Consistent And Persistent:

I’ve made this statement before about our business.  Real Estate is not a get rich quick scheme.  Real Estate investing can help to build wealth over time and put some quick cash in your pocket today.

But you’ve got to follow your plan and stick with it to see real results in real estate.  You’ve also got to continue to increase your education and your experience.

Step 4 – Don’t Fall Into The “Analysis Paralysis” Trap:

Learn to analyze properties quickly.  Don’t get caught up over thinking.  It’s quite simple actually: What’s the property worth?

What does the property need for repairs?  And how much can you buy the thing for?  It all comes down to the numbers!

Step 5 – Become A Master Of Finance:

Real estate is the business of marketing and finance.  You must learn about mortgages and interest rates and the best loan programs that are out there for investors.

You must know how to use finance to negotiate your deals and to sell your properties.

Step #6 – Become A Skilled Problem Solver:

The reason you will get real estate deals that others don’t, is because you are able to solve other people’s problems.  Anything goes on the real estate playing field and you’ve got to be ready for just about anything!

Step #7 – You Must Continue Your Education:

It’s important that you are always investing in your education and learning new tactics, strategies and tips that will help you make more in real estate.  The most important skills you can develop are business building skills.

Who’s The Leader Of The Pack In Your Real Estate Market?

Is there a pre-foreclosure investor in your market who’s always one step ahead of you?  Every real estate market has one.

He is known as the dominant real estate investor.  How does this happen?

He’s Always One Step Ahead Of You

You have your eyes peeled for that next hot real estate investment and you’ve become very disciplined when it comes to searching for new opportunity.  But whenever you drive out to that next hot property lead, this guy has already been there.  How is he able to do this?

Practice, Practice, Practice

Developing a knack for where you’re supposed to be (in the market) and when you’re supposed to be there will take many years of practice.  You don’t just wake up one day and and know exactly where the next hot pre-foreclosure investing deal will be.

But if you can develop this sixth sense (if you want to call it that), it will make it very hard to compete against you.  And once you become really comfortable with this newly discovered power, it will be very undesirable to compete against you.

So keep practicing and follow your gut feeling on your next trip into the field to run houses.  But also listen to this inner voice when it tells you to run away and get out of there too – this power can help you find new opportunity but can also keep you from making some major investment mistakes.  Don’t get me wrong here, you don’t want to base your next investment decision on a gut feeling.

Your inner voice (once its properly developed) will only confirm what you already know in your head.  Pretty cool stuff for the advanced real estate investor.

If you’ve been investing in pre-foreclosures for any length of time, you’ve had other real estate investors bring you potential deals.  Another investor will approach you about buying a property that he has either purchased directly or tied up with a real estate contract.  In many cases, this real estate investor wants to sell this piece of property to you.

How should you handle these situations when they arise?  Well the first decision that needs to be made is how much money you’re going to pay this investor for flipping the deal over to you.  In our language, this is called a wholesale flip.

So How Much Should You Pay Him?

If you’re new to pre-foreclosure investing, pay close attention to this advice.  I’ve heard many different answers to this question and over the years I’ve developed a solid investment guideline when this situation arises in my business.  Here it goes.

I will pay between 10% and 15% of the after repair value (of the property) as a wholesale fee to the other investor.  And not a penny more.

Trust But Verify

Ask to see the purchase agreement or the HUD, which ever is the case.  Before you can pay the investor, you need to know how much he paid for the property he’s trying to sell to you.  If the investor is reluctant to provide you with this information – walk away from the deal.

You don’t need somebody trying to make $30,000 on a wholesale flip.  If you don’t know the other investor, proceed with caution.  If you know him very well, proceed with even more caution.

There is a time and a place for everything under the sun.  A time to sing, a time to dance and a time to invest in real estate.  After knocking on the door of thousands of properties, I’ve developed some good property investment advice for you.

When it comes to door knocking, there are many times when there is nobody there to answer the door.  It can become frustrating if you are out in the field running pre-foreclosure houses and every one of your door knocks goes unanswered.  What can you do about this?

Well, when it comes to investing in properties, especially pre-foreclosures, the best time of the day to drop by is right after work or around dinner time.  We have found time and time again, that we reach the most people at home during the hours of 5 P.M to 7 P.M.  Whether you’ve hired a market scout to complete this task for you or not, you want to maximize your time out in the field.  And you don’t want to have come back to a property three or four times if this can be avoided.

Schedule your time out in the field during late afternoon time frame.  Try this pre-foreclosure investing advice out and let me know what you think.

I always welcome your comments.  Please feel free to leave one.

There are many avenues of travel for the serious real estate investor.

From buying single family houses to purchasing larger apartment complexes, the many opportunities for investors to consider.  If you’re just getting started in the real estate or pre-foreclosure investing business, this will be one of your biggest decisions.

How are you going to make the most money? That is the question.

On my first real estate investment deal, I paid full retail for my first four unit apartment building.  At the time, I was so proud to have taken action and made my first real estate investment.

But looking back on the experience, I really paid too much money for the investment.  The four-plex was a listed property in MLS and I had to fight off other real estate investors in order to buy the building.

With all the competition, the seller had all the leverage in the real estate transaction.  Good for him, not so good for me.  So what did I learn from my first real estate investing experience?

I don’t like crowds.  In fact, when I’m ready to buy a piece of property, I don’t want anybody else around.  Whenever other real estate investors are “circling above,” the price always goes up.

What Can The Serious Investor Do About This?

Go where other investors won’t go and beat them to the spot every time.  Pre-foreclosure investing will give the serious investor this opportunity every single time.  You see, I not only target  pre-foreclosures, I encourage you to go out to see the people and meet with them during this stage in the process.

Most of your competition would rather mail out a post card or make a telephone call.  Serious pre-foreclosure investors know that if you can help the seller first and provide them with the best solution for the problem with the house, you will win. In fact, you both win.

So you make the most money with pre-foreclosures by taking action and being agressive in your persuit of helping people who are behind on their mortgages.  Help as many people as you can (first) and you will end up with the property.  It’s really that simple.

Every business has its own set of problems and real estate investing is no different.

It doesn’t matter how hard you try, you will make a certain number of mistakes.  Mistakes are how we learn.  Do not fear little one – we’ve all had to face these things in our development.

It’s really a big part of becoming an effective pre-foreclosure investor and real estate entrepreneur.  As you probably already know by now, renovating properties is a a necessary cost of doing business.  If you’re planning on renovating to sell or renovating to rent, you’ll have some work ahead of you.

We all know that the investor will have to purchase materials for each project.  You won’t get any objection from me on that.

But here is an area of your real estate business where you need to pay close attention.  Renovation projects require a lot of power tools in order to get all of the work done.

Make sure the hired worker has his own tools before you make an agreement.

When I first started out, I made the tragic mistake of getting into the tool business.  As a real estate investor, I purchased several paint sprayers ($500/each), pressure washers ($650) and extension ladders ($200/each).  I wanted to make sure that we had all the tools we needed in order to finish the project on time and under budget.

Well guess what happened to all of my tools?

Yep, all of my expensive tools managed to disappear – never to be seen again.  And you would think the workers would offer to pitch in and offer to replace the missing tools.  Think again.  The only thing they wanted to know was when I was going back to Home Depot to buy some more tools so they could finish the job and get paid.

Get out of the tool business immediately.

If a worker does not have all the tools he needs to complete the project, do not hire him.  This is just one tip to help you avoid the pitfalls of pre-foreclosure investing.  Keep coming back to learn more.