One of the best ways to get started with building your own personal wealth-building system is by investing in real estate. Becoming a real estate investor is a daunting task, but one that will, if operated efficiently, pay dividends forever.
Where to start? Well lets look at a few basic tactics 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.
People gathered together with like minds create a social atmosphere that motivates new investors to take action. Club members share ideas with other members, discussing what works and what does not work in real estate investing.
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?
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.
Building your team is the hardest part of the whole process. You need to find good quality craftsmen who wont break your budget. Contractors, sub-contractors, plumbers, electrical guys…all of these are important. GREAT ones who do good work are harder to find then a good real estate deal. When you find one…hold on to them.
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 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 invested all over the US and Mexico. His free website shares Real estate investing information for all over the US. Find real estate information by state
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