Success in Real Estate Investing Requires Healthy Skepticism

By: Alexandria Anderson

Some people will liken real estate investing to playing the lottery. They think it is all about being in the right place at the right time and that makes them adopt one of two mindsets. These people will either jump into real estate investing without looking first, or else they will steer clear of investing completely, believing it to be nothing but a fraud.

Although it's good to harbor a healthy degree of skepticism , it isn't good for a person to be so skeptical they refuse to even try. Kiyosaki's Rich Dad series portrays real estate investing as to be easy. Too easy, in fact, if you don't realize those Rich Dad books are simply intended to prepare the beginning investor to educate himself further on real estate investing. The series itself isn't a complete course, but merely an introduction.

After finishing a couple of Kiyosaki's books, it is possible to know the rudiments of real estate, and that it is possible for anyone to grow into a prosperous real estate investor. Skeptics who are not so skeptical they see the whole real estate investment game as a sham, will know there's much more to learn at this point.

The objective skeptic (as opposed to the bitter or cynical skeptic) realizes that doing one's homework plays a key part in the ultimate success or failure of a real estate investor. One must know the way in which one must go about doing that research and what details one needs to gain from the process, and one must proceed to put that knowledge into practice by actually carrying out that research.

Beginning investors should study up on the cities in which they are interested, learning about the economy, whether the area is attracting people in or repelling them, whether businesses are coming in or whether businesses are shutting down. These are only a couple of the things a real estate investor ought to know about an area in which he plans to buy property, but they are extremely important.

The true skeptic understands that even if he reads that an area is doing wonderfully, that doesn't mean no further research is in order. Facts must be verified with more than one or two sources. Cities must be visited. Officials of the city should be interviewed. Experts should be consulted.

A smart skeptic doesn't assume anything. Skeptics check things out, as do successful real estate investors. They let experts direct them to more experts. They question local businessmen and politicians. They get these experts and citizens to back up their impressions instead of simply believing everything they hear.

It's all about putting in the work to get the facts you need. Don't be afraid to ask questions – It’s a vital part every investor’s education. A little skepticism never hurt anyone.

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Alex Anderson Is A Licensed Minnesota Real Estate Agent Who Helps People To Purchase Money-Making Minnesota Investment Properties. Get A Free Copy Of "The Investors' Rental Guide" At www.GreatInvestmentProperty.com