10 Step Process for Investors

Step 1 – The Idea
Napoleon Hill said, “Ideas are the beginning points of all fortunes.” That’s where it starts, in your mind. And at the beginning your mind will be your worst enemy. It will come up with every reason why you shouldn’t or can’t invest in real estate. Step 1 is really changing the way you think. Begin to form a plan, set long term goals, think big and think successful. This is where we can help. Our initial consultation addresses these issues and helps you map out an investing path from today all the way to the fulfillment of your goals.

Step 2 – Overcoming Your Fear
Fear, especially fear about money is one of the greatest motivating forces out there. Unfortunately it most often motivates us to do nothing, because we are afraid that we will lose money. To quote Gary Keller again, he said, “Money lives on the other side of fear.” You must overcome your fear and take action. At the PRO’s Consulting Group, we are all real estate investors, and we all have felt that fear. Our goal is to help you turn from irrational fear to educated action.

Step 3 – Establishing a Criteria
Making a criteria list is a very important element to successful investing. It helps you define what you are looking for, and sets your parameters of what to buy and what not to buy. The more specific and defined your criteria, the better the investment you will make. Whether you are just beginning or are a veteran investor, we can help refine your criteria and sharpen your focus for a greater success.

Step 4 – Developing Your Network
Your network consists of everyone who helps you with your investments. It contains contractors, accountants, lawyers, title companies, property managers, lenders, etc. These are the people who help find, purchase and maintain your investments. To see our network, which you are welcome to use, click here.

Step 5 – Prospecting
As Realtors, finding properties is what we do, however we should not be your only source of leads. We will work for you, finding you opportunities and deals, but you also need to develop a prospecting plan. Everyone one you know, have known, or will know in the future, should know you invest in real estate. You never know who will connect you with your next purchase.

Step 6 – Evaluating Properties
Not all opportunities are worth pursuing, even less are worth buying. With a good set of established criteria, you will already know what it is that you will be evaluating to separate the good investments from the bad ones. Without some thought out criteria, you will not know how to evaluate the property. Evaluating the property is the most critical step in the investment process. Does it cash flow? How has it been maintained? What is the cap rate? How easy will it rent out? What is my exit strategy? These are all questions that need to be asked before a purchase is made.

Step 7 – Purchasing Properties
This is where the rubber meets the road, and you start putting your money on the line. But not really, because if you do it right, most of the money is the bank's. Buying is the biggest step, it takes you out of the role of observer and puts you on the court and in the game. Buying right is the heart of a good investment.

Step 8 – Managing Your Properties
You have options here. You can directly manage your investments, or you can hire us to do it for you. We can help on many different levels, from coaching you through finding tenants to taking care of everything

Step 9 – Selling
What is your exit plan for each property? Are you going to buy and hold? Buy, improve and sell? Are you going to roll your profits into a 1031 exchange in order to avoid capital gains tax? All these are critical questions you need to be asking.

Step 10 – Learning
As a real Estate investor you can never stop learning. There will always be ways to reach a higher level of success. If you want to succeed at investing in a big way you must stretch yourself. Read more, network with other investors, and study your plan and criteria. A true investor is a lifelong student. If you don’t know where to start, try some of the books on our Investor Reading List.