Lesson 1: Where to Start
When starting out in real estate investing it is highly recommended to retain the services of a licensed real estate agent to help you buy your first few properties. Real estate investing is about finding properties that are fairly priced, are in good shape, and are located in economically sound geographic areas that have healthy rental markets. You don’t want to start out making a mistake when purchasing these types of properties. Most likely you are not going to be able to determine the quality of all of the important characteristics of a good home purchase on your own. So having an agent that represents you in all of your transactions is always recommended to help build your dream of retiring wealthy in Real Estate. There’s an old saying in investing no matter what form its takes:
“It is better to avoid mistakes that it is to make gains”
Ask yourself what you think the above saying means. To me that means I would better off doing nothing at all then getting involved in a bad deal that may cost money for years to come. This is why it important for you to take the right steps initially by issuing the right professionals right from the start.
Getting the right deal on a great property will pay you and family dividends for life. So it is necessary to take every step in the buying process seriously and carrying out each task in your due diligence smartly. This can help you make realistic offers, avoid costly mistakes, and put cash in your pocket at closing. Keep in mind there are no perfect properties, the goal is to find out what’s wrong with. Potential acquisition so that you have a chance to either correct them or get cash back to cover these problems at closing. Sometimes you can get cash back and not fix them until a later date to profit on the upfront front these lucrative closing credits. However, most likely each problem will have to be addressed now or later.
Become a Seasoned Real Estate Investor
Making a commitment to gaining experience in the form of on-the-job real estate investing training and continuing your education in the field of real estate investing is also another focus that you must keep. You are the one going in first to look at a prospective property, you are the one hiring other professionals to support you, and most importantly - you are the one who is signing on the dotted line to take ownership of your next piece of real estate. So, keep learning as much as you can and when someone asks, be proud to say, “I am a real estate investor”. Look them straight in the eye and ask them if they would like to sell their home for a price and terms they would like. You will be surprised that some folks will say “yes,” and you will have deal on your hands.
As you acquire experience you will become familiar with certain techniques for buying, financing, renting, and selling properties. You may find that you like to invest in certain types of residential properties like single family bread & butter properties as suggested in this book; or multi family homes such as duplexes, triplexes or fourplexes. No matter what your property preferences are you need to fully understand them by learning as much as you can about them. To become a truly seasoned real estate investor you should want to attend seminars, join real estate investing groups, and expand your home library with videos, books, and CDs not this amazing subject.
You should set aside a budget specifically for adding to your arsenal of educational materials on real estate and related subjects to further develop and hone your real estate investing skills. You should never stop growing and learning no matter how much you think you know. After you expose yourself to new and additional sources of educational information you will develop a seasoned and expansive understanding of this subject. Continued learning is the only way to grow and ensure that you make the best decisions possible each and every time you take action.
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