New To Real Estate Investing?

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.

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.

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.

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.

Have an exit tactic in mind. This is a critical element of investing in real estate. How are you planning on selling this house once it is fixed and ready for market? How much room do you have on price so you sell it and still make a profit?

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.