Starting Out As A RE Investor
So you have decided to increase your personal wealth, and you looking at real estate a means to get there...good for you! Sometimes people get over whelmed by the amount of information that is out there on the subject. Dont let this get to you. If you invest well, you will be rewarded with returns for years.
How does one start with the business of real estate investing? Let's look at plans to get started buying and selling real estate property:
Plug into your local real estate investors association. Most medium to large communities have a real estate club where other real estate investors attend regular meetings. These are other investors with the same goals and dreams as you.
People gathered together with like minds create a social atmosphere that motivates new investors to take action. Club members share ideas with other members, discussing what works and what does not work in real estate investing.
Before you spend a dime. Make sure you map out what you want to invest in and what youre going to do with it. BE SPECIFIC. What type of property? Are you going to hold it for appreciation or are you going to turn it over?
In the beginning it is important to decide what types of properties to focus on. If you wish to buy rental properties, then focus on those. If flipping houses is in your plans, then concentrate on those types of properties. This is important because it allows the new investor to become a specialist within that area. Becoming a specialist leads to fewer costly mistakes.
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)
Lets say you choose a "fixer" for your first project. Be ready to put on your team a contractor, an electrician, heating and AC guy...and of course a plumber. Now a word to the wise. IF you can find one...a GREAT handyman will be able to do all the above mentioned and normally at a far cheaper cost.
Find a good agent. This is harder than you might think. You see most agents dont work well with investors. Why? Investors want the agent to do tons of work the normal buyer doesnt. Offers counter offers...spread sheets to show profits and losses...not to mention all the surrounding research on the sales in the area in the last 6-12 months. A good agent will do this. A good agent understands that they may sell you more than one house in a years time...and that means repeat business for the agent.
Exit Strategy. How to unload your investment. Think about how youre going to sell it. Are you listing it yourself?? Or using the great agent you found. How long will you stick with a price before you lower it? These are things to make sure you have set up in your plan already.
Are mistakes going to happen? Yes. They happen to every real estate investor...the trick is to learn how to spot them. The longer you hold on to a property the lower your profit.
In the end, the investor who runs their business in the most efficient ways will profit, succeed, and grow in real estate investing. - 23210
How does one start with the business of real estate investing? Let's look at plans to get started buying and selling real estate property:
Plug into your local real estate investors association. Most medium to large communities have a real estate club where other real estate investors attend regular meetings. These are other investors with the same goals and dreams as you.
People gathered together with like minds create a social atmosphere that motivates new investors to take action. Club members share ideas with other members, discussing what works and what does not work in real estate investing.
Before you spend a dime. Make sure you map out what you want to invest in and what youre going to do with it. BE SPECIFIC. What type of property? Are you going to hold it for appreciation or are you going to turn it over?
In the beginning it is important to decide what types of properties to focus on. If you wish to buy rental properties, then focus on those. If flipping houses is in your plans, then concentrate on those types of properties. This is important because it allows the new investor to become a specialist within that area. Becoming a specialist leads to fewer costly mistakes.
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)
Lets say you choose a "fixer" for your first project. Be ready to put on your team a contractor, an electrician, heating and AC guy...and of course a plumber. Now a word to the wise. IF you can find one...a GREAT handyman will be able to do all the above mentioned and normally at a far cheaper cost.
Find a good agent. This is harder than you might think. You see most agents dont work well with investors. Why? Investors want the agent to do tons of work the normal buyer doesnt. Offers counter offers...spread sheets to show profits and losses...not to mention all the surrounding research on the sales in the area in the last 6-12 months. A good agent will do this. A good agent understands that they may sell you more than one house in a years time...and that means repeat business for the agent.
Exit Strategy. How to unload your investment. Think about how youre going to sell it. Are you listing it yourself?? Or using the great agent you found. How long will you stick with a price before you lower it? These are things to make sure you have set up in your plan already.
Are mistakes going to happen? Yes. They happen to every real estate investor...the trick is to learn how to spot them. The longer you hold on to a property the lower your profit.
In the end, the investor who runs their business in the most efficient ways will profit, succeed, and grow in real estate investing. - 23210
About the Author:
Doc Schmyz has invested all over the US and Mexico. He built a free free website shares Real estate investing information for all over the US. Find Real estate investing information by state
posted by X - Men @ 3:39 AM
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