New to RE investing?
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.
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.
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?
So know you need to decide on the type of investment property you want to invest in. do you like the idea of duplexes? Single family homes? Small apartments? Remember this, if you start out with one type and become familliar with it, then you will learn exactly what you need to do to make the profit from it. Being a specialist in this manner can lead to faster profits.
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.
So lets say you choose to do the “fix and flip” game. People to have on your team are a contractor, electrician, plumber, and to be safe a heating/air condition guy. Now if you can find one…and the property isnt getting major work (like say a room addition) you can get away with a good handyman who does all the above.
Working with a investors real estate agent in a dream….but they are a nightmare to find. Interview your agent. Tell them exactly what you want to do. Tell them..”I want to invest in real estate…I want to buy x amount of properties a year”. this means you need to have an agent thats willing to do far more for you then just show you a house or two. A good agent will write offers..LOTS of offers, and show you the selling history for a given area.
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.
Be efficent, and resourcefull. Keep your eye on your bottom line and you will grow a nice little investment business.
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