Third, learn every detail of the business, as I will explain to you in the pages ahead.Fourth, be prepared to back your plans with hard work, sacrifice and persistence.Finally, number five; resolve to get into the field of real estate for the long-term, aminimum of 10-20 years, if you want to build a lasting portfolio in real estate. Realestate is a form of long-term investing and requires long-term thinking.
Learning From An Expert
Earlier in my career, I spent several years working with a brilliant investor andentrepreneur who accumulated more than $500 million dollars worth of real estateover the course of his career, starting from nothing. He taught me many valuablelessons about real estate that I will share with you, plus much more besides.Each time I ignored his lessons, I ran into trouble and lost money. Each time Ifollowed his teachings, I was successful. None of his advice was more important thanthe necessity for patience and a careful examination of every detail of the propertyinvestment before making a commitment.
Real Estate Defined
Let us begin with the definition of real estate in its simplest terms. Here it is: “Realestate
its future earning power.” This is an extremely important principle tounderstand. “Real estate is its future earning power.”The value of any piece of property is determined by the income that can be generated by that property when it is developed to its highest and best use from this moment intime, and onward into the future.There are millions of acres of land throughout the US that will never have any realvalue, such as desert land, for example, that cannot be developed to produce income,to satisfy specific human needs or to earn any money.
Real Estate Values Decline
There are vast areas of many large cities where property values are declining becausegrowth and development have come and gone, and will probably not return. Everyday, men and women are selling homes and property at less than they paid for them,or are losing them to foreclosure, because these properties have declined in earning power and therefore in value.