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.
First things first where to find the information. In the last several years the amount of real estate investment groups has exploded. Find a local one and attend a meeting. And dont be afraid 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.
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.
Find a good agent. THis is harder then 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 understand that they may sell you more then one house in a years time..and that means repeat business for the agent.
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.
In the end, the investor who runs their business in the most efficient ways will profit, succeed, and grow in real estate investing.