A wise real estate investor isn’t afraid to ask questions…

March 10, 2008

Many potential real estate investors will liken buying investment property to playing the lottery. They believe the investment game is all about luck and that makes them take one of two attitudes. These people will either leap into real estate investing without looking , or else they’ll avoid investing completely, seeing it as nothing but a hoax.

Although a certain degree of skepticism is an admirable attribute, it’s no good for someone to be so incredulous they refuse to make a move. Kiyosaki’s Rich Dad book series portrays real estate investing as easy. Too easy, in fact, if you fail to realize those Rich Dad books are only meant to prepare the newcomer to learn about investing on his own . The books themselves aren’t a complete education, but merely a primer.

After finishing just a fewof the Rich Dad books, you will understand the rudiments of real estate, and that anybody can become a prosperous investor. Skeptics who are not so skeptical they believe it’s all a crock, will realize there’s much more work to be done at this juncture.

The wise skeptic (as opposed to the cynic) knows that research plays an important part in the success of an investor. One must understand the way in which one must do that research and what details one must gain from the process, and one must proceed to put that knowledge to a practical use by actually carrying out the research.

Beginning real estate investors ought to study up on the cities in which they can see themselves investing, educating themselves about the pertinent economic factors, whether the area is luring people in or repulsing them, whether new business is entering the area or businesses are closing up shop. Those are just a couple of the things a real estate investor must know about an area in which he plans to buy property, but they are very important.

The true skeptic understands that though he may read that an area is booming, that doesn’t mean no further research is in order. The relevant facts must be verified with several sources. Cities must be visited. Officials of the city must be interviewed. Experts should be interviewed.

A wise skeptic never makes assumptions. Skeptics check things out, as do good investors. They let experts direct them to more experts. They interview politicians and businessmen in the area. They get the relevant authorities to verify their impressions rather than simply giving shining reports on their city.

It’s all about work and questions. The wise investor isn’t afraid to ask questions and lots of them. There is nothing wrong with being a skeptic.