The “Five Laws” or best practices of real estate investment are as follows:
- Never compromise: The investors are looking for properties that meet their criteria and that are being sold by motivated sellers who will meet their terms.
- Be a shopper, not a buyer: It’s better for an investor to miss a good deal than to buy into a property that ends up being a costly mistake.
- Timing matters: The investor should try to be the first or the last person to make an offer. If the investors are utilizing the network correctly and following their criteria, they will either find the property first and make an offer, or they will make an offer last and it will result in a sale.
- It’s a numbers game: In real estate investment, the quality is in the quantity. In order to find and execute a good deal, investors must pursue a lot of leads and look at a lot of properties.
- Be organized and systematic: Investors must treat their investment activity like it’s their business, and they should protect their time and their money by being organized and systematic.