New to RE investing?
August 20, 2008 by Doc Schmyz
Filed under Wealth Building
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One of the best ways to get started with building your own personal wealth-building system is by investing in real estate. Becoming a real estate investor is a daunting task, but one that will, if operated efficiently, pay dividends forever.
How do you start? Well lets take a look at a few time tested methods.
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.
Most of these clubs are very open with new members or any one intrested 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.
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.
Find a real estate agent that understands property investors and their needs and is willing to work with you on a continuing basis. An agent gives you access to property information, including the Multiple Listing Service. An agent who understands real estate investing can also find you good deals within your specific market.
Exit Stratagy. How to unload your investment. think about how your going to sell it. are you listing it yourself?? Or useing 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.
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