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.
Where to start? Well lets look at a few basic tactics for a new investor.
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.
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 actually buying any investment properties, beginning real estate investors should begin to put their organizations together by outlining a specific business plan. The plan should go over every step in the purchase of a property, from the marketing strategies on through the sale or leasing of a property.
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)
If you will be working with "fixer-upper" houses, line up a plumber and an electrician, as well as heating and air-conditioning experts. Better yet, find a reliable "handyman" who is capable of doing many of the jobs needed in fixing up houses.
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 efficient, and resourceful. Keep your eye on your bottom line and you will grow a nice little investment business.
Where to start? Well lets look at a few basic tactics for a new investor.
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.
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 actually buying any investment properties, beginning real estate investors should begin to put their organizations together by outlining a specific business plan. The plan should go over every step in the purchase of a property, from the marketing strategies on through the sale or leasing of a property.
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)
If you will be working with "fixer-upper" houses, line up a plumber and an electrician, as well as heating and air-conditioning experts. Better yet, find a reliable "handyman" who is capable of doing many of the jobs needed in fixing up houses.
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 efficient, and resourceful. Keep your eye on your bottom line and you will grow a nice little investment business.
About the Author:
Doc Schmyz has done real estate deals all over the US. His website shares Real estate investing information for all over the US. Find real estate information by state
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