Starting Out As A RE Investor

So you have decided to increase your personal wealth, and you looking at real estate a means to get there…good for you! Sometimes people get over whelmed by the amount of information that is out there on the subject. Dont let this get to you. If you invest well, you will be rewarded with returns for years.

How does one start with the business of real estate investing? Let’s look at plans to get started buying and selling real estate property:

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 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.

Now dont buy anything just yet. You need to map out your “battle plan”. What type of real estate are you interested in? What are you willing to do with it? And what is your exit strategy 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.

Begin to get together a group of contractors and sub-contractors who you can trust to work within your new system and according to your business plans and your budget.

Lets say you choose a “fixer” for your first project. Be ready to put on your team a contractor, an electrician, heating and AC guy…and of course a plumber. Now a word to the wise. IF you can find one…a GREAT handyman will be able to do all the above mentioned and normally at a far cheaper cost.

Find a good agent. This is harder than 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 understands that they may sell you more than one house in a years time…and that means repeat business for the agent.

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?

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 efficient, and resourceful. Keep your eye on your bottom line and you will grow a nice little investment business.

Doc Schmyz has worked with investors all over the US and Canada. He owns a free website that shares Real estate investing information for all over the US. Find real estate information by state