So you decided to get into real estate investing. Good for you! While at first, real estate investing can seem a bit overwhelming, if you pay attention, you will be paid in rewards and dividends for years.
How do you start? Well lets take a look at a few time tested methods.
Everywhere you turn these days someone is a member of a Real Estate group. Find where they meet and be willing to ask the most basic of questions.
Most of these clubs are very open with new members or any one interested in investing. So show up and mingle. Most investors love to share war stories or exchange information on purchases they have mad or services they have used.
Now dont buy anything just yet. You need to map out your "battle plan". What type of real estate are you interested in? What are you willing to do with it? And what is your exit strategy with it?
So know you need to decide on the type of investment property you want to invest in. do you like the idea of duplexes? Single family homes? Small apartments? Remember this, if you start out with one type and become familiar with it, then you will learn exactly what you need to do to make the profit from it. Being a specialist in this manner can lead to faster profits.
Ok now comes the fun part. You need to find the people that offer the skills you need to accomplish your plan. Contractors, handy men, sub-contractors etc. Finding the right people to make your team is the hardest part of this game. (I use the same people for the same job on EVERY property I buy)
So lets say you choose to do the "fix and flip" game. People to have on your team are a contractor, electrician, plumber, and to be safe a heating/air condition guy. Now if you can find one...and the property isnt getting major work (like say a room addition) you can get away with a good handyman who does all the above.
Working with an investors real estate agent in a dream....but they are a nightmare to find. Interview your agent. Tell them exactly what you want to do. Tell them...I want to invest in real estate...I want to buy x amount of properties a year". This means you need to have an agent thats willing to do far more for you then just show you a house or two. A good agent will write offers...LOTS of offers, and show you the selling history for a given area.
Time is always a key factor in real estate investing, so always look to ways to "turn" a property in the least amount of time. A property that remains unsold or not rented is eating up profits every day it in your possession. Learn to cut the losses on properties that fail to meet their profit potential.
Every beginning real estate investor will make mistakes that cut into potential profits. It is imperative to recognize these mistakes and correct them before they can cripple the business.
Be resourceful and pay attention to your bottom line. Build a good team and you will have a nice profit at the end of every investment.
How do you start? Well lets take a look at a few time tested methods.
Everywhere you turn these days someone is a member of a Real Estate group. Find where they meet and be willing to ask the most basic of questions.
Most of these clubs are very open with new members or any one interested in investing. So show up and mingle. Most investors love to share war stories or exchange information on purchases they have mad or services they have used.
Now dont buy anything just yet. You need to map out your "battle plan". What type of real estate are you interested in? What are you willing to do with it? And what is your exit strategy with it?
So know you need to decide on the type of investment property you want to invest in. do you like the idea of duplexes? Single family homes? Small apartments? Remember this, if you start out with one type and become familiar with it, then you will learn exactly what you need to do to make the profit from it. Being a specialist in this manner can lead to faster profits.
Ok now comes the fun part. You need to find the people that offer the skills you need to accomplish your plan. Contractors, handy men, sub-contractors etc. Finding the right people to make your team is the hardest part of this game. (I use the same people for the same job on EVERY property I buy)
So lets say you choose to do the "fix and flip" game. People to have on your team are a contractor, electrician, plumber, and to be safe a heating/air condition guy. Now if you can find one...and the property isnt getting major work (like say a room addition) you can get away with a good handyman who does all the above.
Working with an investors real estate agent in a dream....but they are a nightmare to find. Interview your agent. Tell them exactly what you want to do. Tell them...I want to invest in real estate...I want to buy x amount of properties a year". This means you need to have an agent thats willing to do far more for you then just show you a house or two. A good agent will write offers...LOTS of offers, and show you the selling history for a given area.
Time is always a key factor in real estate investing, so always look to ways to "turn" a property in the least amount of time. A property that remains unsold or not rented is eating up profits every day it in your possession. Learn to cut the losses on properties that fail to meet their profit potential.
Every beginning real estate investor will make mistakes that cut into potential profits. It is imperative to recognize these mistakes and correct them before they can cripple the business.
Be resourceful and pay attention to your bottom line. Build a good team and you will have a nice profit at the end of every investment.
About the Author:
Doc Schmyz has invested all over the US. He built a free free website shares Real estate investing information for all over the US. Find real estate information by state
