April 11, 2010
Real Estate Investing | How Do I Get Started In Real Estate Investing?
How do I get started in real estate investing, is the basic question on the minds of every beginning investor. It’s a question that must be asked and explored to be successful in the real estate business. Research and planning are essential to entering the real estate business because lack of a solid knowledge base will prove to be a costly endeavor.
The first thing you should consider before jumping into the housing marking is your financial picture. Make sure your credit is in good enough condition to get a decent loan. If there are any negative marks on your credit, get them fixed as soon as possible. Those with extremely poor credit may have to use other creative means to obtain funds. But it is not impossible, it will just be a harder, longer process.
Once your financing is in order, you are now ready to hit the market. The key is to search for the best bargain. You essentially want to buy low and sell high. If you do your research, you can always get a good deal. Having your finances in place, ups your chances of being the first to grab a good deal. Home sellers are particularly favorable to buyers that are in a position to immediately close on a purchase. The more money you have upfront, the better the deal you will receive.
In order to make a good profit you must research the market. Investigate the various property types available and their locations. Think about what type of property you want to invest in; multiple dwellings, distressed property, fixer uppers, repossessions, direct sales by owners or condominium sales. You may find the best prices and overall deals in repossessed property or distressed property.
Beginning investors should also look into bank owned property. These are referred to as Real Estate Owned or REO houses. Depending on how bad the bank wants to get rid of the property the better your deal. Many banks offer financing on their repossessed homes and they generally offer very good deals. Learn the lending terms to give yourself a stronger bargaining position and lower your overall buying costs.
Multiple listings or MLS are another avenue to find property at a good deal. The longer the listing has been on the market the better your chances are of finding a motivated seller and getting a good price. The trick is to put out a low bid with a quick escrow. This gives the seller a quick out of a property they may be desperate to get rid of and you, the investor, a bargain basement deal.
As you grow more as an investor you may decide to get into flipping properties. Flipping involves purchasing a property, fixing it up then selling it for a profit. For beginners, it is best not to get a property that is too distressed. You want to keep your costs at a minimum. You also want to be able to turn it around at a fast past and make your profit.
Be smart, do your research and get the proper financing in order. If you decide to go with an agent, get a good, knowledgeable on that really knows the ins and outs of the market. There are many routes to explore when answering the question How Do I Get Started In Real Estate Investing. With time, experience and persistence a beginner can achieve a lot of success in this business.
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8 Comments on Real Estate Investing | How Do I Get Started In Real Estate Investing? »
May 4, 2011
siryoz0 @ 12:03 am:
Real estate investing offers you great advantages like renting it out to earn profit monthly or use it as collateral to make a loan should you need the full amount or to make other personal loans.Investment property Baltimore MD
May 13, 2011
Joy Smith @ 5:49 pm:
Property Investment in Las Vegas is thus a good place to start investing and the latest investment vehicles in the area include serviced apartments which are situated next to some of the most famous casinos in the area. Such properties provide good rental yield and income for the longer term and with leverage, your return on investment looks quite good.
Thus Real Estate Investing In Las Vegas looks like and increasingly good deal due to the "Casino Effect" and can act as a hedge against other states which are dependent on the broader economy.
You may also consult marcosold, are the Real Estate Experts, They provide exceptional real estate services.
May 22, 2011
Patrick Riddle @ 9:33 am:
Hey!
Just noticed that you used my article here:
I don't mind if you use it but expect a link back to my blog.
You could put “Patrick Riddle” as the author and write “For more information, check out Patrick's creative real estate investing blog.” It would be great if you made “creative real estate investing blog” the link to my blog.
Thanks!
May 28, 2011
Mark L @ 9:07 pm:
Don't borrow to invest…you will find the interest paid will offset your gain on the investment, and worse still, if the investment loses money, you will still have the loan.
I will give you some good advice…pay attention.
You are young and that makes a big difference..Save up your money until you have $1,000, and take it to the bank and buy a no-load balanced mutual fund, Figure an amount per month that you can afford to invest and tell the bank to take this amount once a month to buy more shares of this fund,
Then start reading about investments, markets, market psychology, how changing interest rates affect markets, how current events affect markets, and anything you can learn about investing will help you understand.
This amount you invest every month won't be noticed by you (not having it to spend) after a few months…..Increase this amount when you can..if you get a raise, put the take home increase into your fund. As you learn about investing and understand your risk tolerance, branch out ito more diversification, Like a good equity fund, maybe a resource fund, but start with a balanced fund.
Over the years you will get rich following this advice, but don't start spending your fund on cars or trips…otherwise you will have to start all over again.
June 17, 2011
REIA of Oakland @ 6:58 pm:
Great read as always. I luckily was to young to feel the 16% inflation and unemployment in the double digit territory. This is one of those things that makes you feel like you don’t know how well you have it until you see that it could be worse. Interest rates on mortgages are fortunately lower than I’ve seen them since I started working in real estate investing but in Michigan there is still plenty of uncertainty on how things may turn around.
July 1, 2011
Simpson G @ 11:39 pm:
Las Vegas real estate isn't going to be increasing in value anytime in the next 5-10 years. If you have the cash burning a hole in your pocket and you know that finding good tenants to rent to is going to be easy, and you don't need to see an increase in property values for a long time, then Las Vegas is great.
Real Estate can be a great investment, if you do it right. If you are going to be mortgaged up to your eyeballs without a property manager and don't know how to run the numbers correctly, it can be a complete nightmare.
Too many people forget to add in things like closing costs, mortgage interest, upkeep, utlities, HOA fees, property taxes, etc, and when they see a $10,000 return without counting all that, they get hooked. Then suddenly they don't understand why they aren't making their mortgage payments and dread that next property tax bill.
July 30, 2011
mhaize @ 8:14 am:
I think you can do that by putting the money into a "Roth" IRA. The laws are much more tolerable with a Roth than with conventional 401(k).
August 20, 2011
Muga Wa Kabbz @ 2:56 pm:
I love the series of books. First of all, you don't need to be wealthy/have money to invest. However, you need to invest to be wealthy. I used bank loans to start my investment portfolios, thanks to Kiyosaki's tips. B4, I had the mindframe of saving money in order to invest.
Nowadays, I realize you can use the banks money to invest. Bank managers are often willing to give people money for a good investment. Money always follows a good investment, though you have to learn about them, invest to gain experience. Also, it's important to have mentors who've achieved whatever you want to achieve. They're a good source of guidance.
I like the Rich Dad, Poor Dad series of books because the tips have been helpful to me and are helping me achieve my goals.