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 tatics for a new investor.
Every where you turn these days some one is a member of a Real Estate group. Find where they meet and be willing to ask the most basic of questions.
RE investors, are for the most part, a great group of people, from all walks of life. the one thing we all share is our passion for what we do. We discuss tatics and ideas about what to invest in as well as where. We share tips on things that have worked ..and warnings about things that dont.
Now dont buy anything just yet. You need to map out your "battle plan". What type of real estate are you intrested in? What are you willing to do with it? And what is your exit stratagy with it?
At first you need to decide on what type of property to start with. If your goal is to find distressed houses then focus on those. If you want to deal with the condo market..then thats where you look. Keep in mind when you focus on one area you will become more understanding of what those types of property can be sold for, not to mention how much it cost to get them sale ready.
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.
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.
Have an exit tatic 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.
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 efficent, and resourcefull. Keep your eye on your bottom line and you will grow a nice little investment business.
About the Author:
Doc has been a project resource manager since the early 90's. In 2006 he started a real estate investing information website. His goal is to help other project resource managers by giving them the information on real estate services that will help them
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