Why do some investors make a killing in real estate while others fail?

And do they really make all this money they brag about?

Two stories: $15k quick profit and $60k loss

Which one is true? Both.

I have been preparing tax returns exclusively for REI clients since 1996. It is more than 20 years, hundreds of clients and thousands of tax returns. Here is how it looks in real life:

90-95% of investors show losses - meaning they FAIL in this business

5-10% show small profit - not a complete failure, but not enough to live on

only 1-2% of investors are able to become financially successful

Isn't this depressing? I'd say so.

There must be some secrets to success in REI!

There are.

After seeing as many real stories as I have, I can identify 5 critical factors that determine success in real estate. I can also dispel various myths about other factors that are commonly believed to be important - but they are NOT!

Let me explain what I call a critical factor. This is something that ALL of the successful investors share. It makes sense that you should have it, too - if you want to join the success club.

Which factors would not be critical, then? Not critical does not mean that they are not helpful. It simply means that not having them will not stop you from getting to the top! Some of the best investors I know achieved their success without those non-critical factors. Which means that you can, too!

A lot of things can you help you succeed.
But only FIVE of them are absolutely required!

So, what are those five secret weapons?

First, let me bust one of the myths.

Many believe that you need some real estate experience before getting into investing. In fact, there are people who teach that prior experience in real estate is necessary. After all, don't you need to know your way around the kitchen before opening a restaurant?

However, in real estate this is simply NOT THE CASE! Many successful investors will tell you that they started with zero real estate experience or training - NONE whatsoever!

If you do know real estate when you begin investing, it should help. But if you do not - it is not a good reason to hold. Jump in the pool and learn to swim while in the water. A lot of people before you did just this.

OK then, what about the critical factors? Here is one of them:

You need a team! Investing is a team sport.

There are the right ways to build a team and the wrong ways to build a team. Let's start with the wrong ones.

Do not build a team from other newbies. What do they bring to the table, other than moral support?

Do not enlist family and friends - even if they have some skills or resources that you need.

Do not build a team for the future. As you move forward, your team will expand, but start small.

What't the right approach to team building? I'm not ready to answer this question, because you need to start from a different critical factor. Remember that there are five of them? Well, building a team is number 4 out of 5. And you have to start with number 1.

Are you ready to learn about the Magic 5?

"The Magic 5" is an email video course
Once you sign up, we will send you a series of short videos. It will come to you via email, one video at a time. Unlike with live training, you can view the videos whenever it is convenient for you.
This insightful course is absolutely FREE!
That's right - it is totally free! No catch. You do not need to pay for anything. No commitment, no strings attached. Just helping you to get started in REI and succeed!
But I do not like to give my email address
We understand. We hate spam, too. This is why we assure you that your email address is totally SAFE with us. We never ever sell our email lists or let other businesses "borrow" them. It is for us only - so we can share with you our knowledge and help you. You can opt out anytime if we do not meet your expectations.

But wait, there is more!

1. Learn how (not) to lose $100,000 in REI. Remember the scary image at the top of this page?The one about $60k loss? Yes, this was a real story, and sadly not a unique one. Take Michael's 5-hour online course that looks in depth at the causes of such disasters and - more importantly - ways to prevent them. It's a recording of a live class.

Take an online class

2. Request a private consultation.
Sometimes, it is better to sit down and discuss these challenges in person. Sort of like a financial therapy session. It is obviously not free - but it can be a business-saving investment. Whenever you're ready - we are here to help.

Request consultation

Michael Plaks

Black Belt in Real Estate Taxation

About Michael Plaks

Michael is known in the REI community as the "Black Belt in Real Estate Taxation." Why? Because after 20 years in private tax practice, working exclusively with real estate businesses, he is the ultimate expert. He is a best-selling author and an awards-winning public speaker, frequently presenting for REI clubs and Realtor groups.

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