Articles

The current real estate market has caused some to question the investing principles that one should be following. In 2005, a bestselling book called The Millionaire Real Estate Investor was written by Gary Keller with Dave Jenks and Jay Papasan. The question is, because of the recent market changes of a buyers market from a sellers market do the principles laid out in the book still apply?

First, lets understand how the book was originally written. It was based on extensive research and interviews with over 120 millionaire real estate investors. The basic model laid out were Criteria, Terms and Network.

Criteria: What you buy. Criteria is the name used for the checklist you use to identify the type of property that you are going to buy. This applies to a buyers market because there appears to be all type of opportunities available, but you still need to establish what you are looking for & how you are going to take advantage of the market conditions. Are you going to stick to one particular type of property? Only condos or single families? These apply no matter what the market. The buyers market presents some new opportunities to consider.Are you going to focus on pre foreclosures, foreclosures or short sales? With these situations presenting themselves more & more, including them in your criteria checklist would be worth considering to see if they provide the greatest opportunity and the least risk.

Terms: The headlines are full of the sub prime fall out, yet interest rate remain low, terms are even more important in the buyers market then they have ever been. Add to that the true evaluation of proper offer prices when overall prices are stagnant or declining. Simply taking the time to establish your own parameters to determine when a deal is a good deal & when a deal should be walked away from is critical in an emotion filled buyers market.

Network: Who helps you. This truly applies. Having a network of select relationships that know your criteria & that are able to feed you opportunities is essential, even today. Imagine a well placed attorney that knows of pre-foreclosure proceedings or a Northern Virginia Real Estate Team that is intimately aware of a particular area or that is working in conjunction with a bank to dispose of Bank Owned / Foreclosure Northern Virginia Homes.

"Mastering these areas will give you the greatest chance for long term success & place you solidly on the path to becoming a Millionaire Real Estate Investor". This was sound advise when the book was written and remains sound advice today.

Robert Earl - Founder of The Earl of Real Estate Team is a Real Estate Entrepreneur & Real Estate Coach serving the Northern Virginia Real Estate Market. The Earl of Real Estate Team focuses on Herndon VA Real Estate, Condos, Townhomes & Homes for Sale