The Basic Tools

No matter what business you are in, you will need the proper tools if you are to be a success. Here is a list of essential tools:

1. 1. A job or business of your own.
   As you know, we talk about real estate making you wealthy in 5-10 years. In the meantime, you need money to support yourself and your family. A regular job or a business also makes it possible for you to obtain credit and appear credible to agents and vendors.
2. 2. Knowledge of the law.
   Be sure to have in your possession a copy of the relevant legislation for your state. Read the documents thoroughly. Although you will be using a lawyer, there will be times when you will need an answer and the lawyer will not be available. It is also good business to have some knowledge of the law, which affects your business.
3. 3. A filing Cabinet.
   It is very important to be organized. You must be able to lay your hands on any document in a hurry. The best way to do this is to use a filing cabinet for all your papers. The filing cabinet should be legal size, as real estate forms are usually this size. In the filing cabinet, you should have legal forms, records of properties you have visited, rental studies, people who can assist you, articles concerning real estate, reciepts for expenses, rental records, etc.
4. 4. An amortization table.
   This is very small and you will probably carry it with you. You will be able to calculate mortgage payments once you know the interest rate and the length of the amortization of the mortgage.
5. 5. A calculator.
   A calculator will come in handy when doing quick calculations to determine cash flow and prices for properties. A financial calculator would be preferable, as this would eliminate the need for an amortization table.
6. 6. Offers to purchase.
   (agreements of purchase and sale). You can buy these forms at any legal stationary store or some real estate brokers will even give them to you. By having these forms on hand you will be able to take advantage of opportunities that may come along while you are out for a walk or when your agent is on vacation. Since the forms are standard, the seller and his lawyer will readily accept them. You should change them to suit the particular purchase but the basic form is always the same.
7. 7. Agreements of purchase and sale for condominuims.
   There are special terms that only apply to condominium purchases and you should have these forms in the event you buy a condominium or townhouse.
8. 8. A standard lease form.
   These are available at any legal stationary store or from your lawyer.
9. 9. Small claims court forms.
   You can obtain these forms from any small claims court office and they are free. If it should become necessary for you to sue a tenant, you would need to fill in the form, call the court office and learn how much money would be needed to process the claim. Next, take the form and a certified check to the office. Later, you will go to court and prove your claim.
10. 10. Books.
    You should have as many books as possible on real estate, tenants, property management, home inspection, etc.
11. 11. Home Office.
    This provides positive tax deductions.
12. 12. Computer.
    A computer can create professional documents, house a buyers database and provide marketing materials. If you have real estate evaluation software you can analyze cash flow, project profit and track properties.