Now multiply the leverage of time factor by the leverage of money factor. Your answer will be somewhere between 1 and 9. The fastest velocity is 9; the slowest is 1. As you begin investing in real estate, it's often best to start with a slow velocity. You might want to ensure cash flow by putting more money down and by being very careful with your other sources of debt or income. Additionally, it might be a good idea to also do many of the tasks of renovating and leasing your property in the beginning. This will give you experience that will be helpful as you develop systems and begin working with professionals.
But if you have a low velocity and you're not a brand-new investor, consider pushing outside your box a little. The higher the velocity, the more potential wealth you can create for yourself, your family, and your community.
1. Take the test in this chapter.
2. Are you satisfied with the results? Is this the right place for you to be in your real estate career?
3. If you're ready for a change in the speed in which you grow wealth, what two actions can you take right now to increase your velocity?
4. For additional tips go to www.DolfAndDiane.com. What action steps can you take after reviewing the new ideas posted there?
5. What two actions steps do you want to take as a result of reviewing the above?
I commit to performing the above action steps by_
Getting Ready for
Most people, when they think of real estate, think in terms of either residential real estate or commercial real estate. What's more, when given the choice of investing in either of these two categories, most people prefer residential real estate for the simple reason that they are reasonably familiar with residential property (almost everyone has lived in a house!). Therefore, they have a reasonable idea as to what they are looking for if they are looking to invest. For instance, even the most naive investors would know that a house must have a kitchen, a front door, and a roof, to attract even the most disinterested tenant. However, when it comes to commercial property, many people are so unfamiliar with what a tenant could reasonably expect, that they shy away from commercial real estate altogether.
In this chapter we are going to compare residential real estate with commercial real estate, and discover many other categories of real estate that are equally valid.
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