If You Love Numbers, and Love Learning, You Can Be a Real Estate Investor



Real estate is truly a numbers business. Investing is numbers. But more than that it's learning process.

One thing that many people do not understand is that learning to invest in real estate is a process. They do not realize that since they only see the end result – a rich person with a so called "midas touch." They think the person gets lucky finding deals.

Someone who has begun their own real estate journey knows that successful investors are applying skills they have developed over time. You have to love to learn. Real estate is constant changing field, and investors must understand that many things are involved. And yes, numbers... lots of numbers are involved. But more important than that, what do those numbers mean?

In real estate investing, numbers tell a story. If the expenses are too high it may show several things. It could be that the current management is incompetent. If the utilities are too high, for instance, it may mean the property may have structural or needs repairing. Taxes might be calculated wrong, and you as the investor spot an opportunity to get it reassessed. Maybe the rents are too low compared to the market. As you begin to see the numbers on a property, you learn. You learn what NOT to do, what TO DO, and how you can make MONEY off that problem. You learn something others don't know, and that is the real advantage because as investors, income and wealth begins to grow when you can fix mistakes others can't.

Take it slowly and allow yourself to make plenty of small mistakes and use that to build a base of knowledge. Start out with real estate definitions, such as net operating income, return on investment, loan to value, debt coverage ratio, so on and so forth. You will begin to see how it all fits together and you will start to make money.