Starting Out As A RE Investor
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?
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.
Building your team is the hardest part of the whole process. You need to find good quality craftsmen who wont break your budget. Contractors, sub-contractors, plumbers, electrical guys...all of these are important. GREAT ones who do good work are harder to find then a good real estate deal. When you find one...hold on to them.
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.
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. - 23221
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?
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.
Building your team is the hardest part of the whole process. You need to find good quality craftsmen who wont break your budget. Contractors, sub-contractors, plumbers, electrical guys...all of these are important. GREAT ones who do good work are harder to find then a good real estate deal. When you find one...hold on to them.
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.
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. - 23221
About the Author:
Doc Schmyz has worked with investors all over the US. He built a free website shares Real estate investing information for all over the US. Find real estate information by state
posted by X - Men @ 8:49 AM
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