How to Get Started in Investment Properties
Posted on November 2, 2008
Filed Under Preforeclosures Short Sale |
One of the best investments that you can be involved in today is that which deals in real estate. Right now, real estate is moving very good and it is a good time to be dealing with it. Much money can be made in real estate transactions and the good news is that you can make a lot of money quickly - if your investments and selling techniques are made wisely. Here are a few things you need to know about getting started in this potentially lucrative field.
Learn About It
Investments of any kind require that you learn about what you are investing your money in. Any other way of investing is only foolish, unless you have some really good financial counselors. But generally, the more you know the better off you will be. This is especially true in real estate, because the investments are large and the losses can be high. You should want to read all you can about it before you make any moves. Not only should you learn about how to choose a property that people will want, you also need to know how to research the local market to know what a property should sell for.
Types Of Property
There are a number of ways that you can get started in real estate. Largely this will be determined by how much money you have to get started with. If you do not have much money, you may want to start with foreclosures, or pre-foreclosures. These properties will be the cheapest, and, because of their value as opposed to their cost to you, could bring some excellent returns. You can buy them at less than market value, fix them up a little, and turn around and sell them at market value - for a good-sized profit.
Other properties involve residential or commercial, large and small. Once again, you need to make sure you know what you are doing before you invest. Learn the secrets to investing that will make it worthwhile, and be able to recognize a bad deal when you see one.
For Sale Or Rent?
When you want to buy property is it so that you can turn around and sell it - or do you intend to rent it out? Residential renters have a great many needs and may disturb your sleep if they need to have something done right away. On the other hand, commercial renters have a tendency to take of small things for themselves just to be able to get back to their business. Renting property out is one way to ensure an income over a long period of time, but will require a percentage of outlay to keep the property up. Commercial property, if in a prime location, however, is always sure to remain in demand.
While the real estate market is hot, there is a possible downside that you need to be aware of. Money that is tied up in real estate, while able to keep its overall value, could be tied up in that property for some time - not all property sells quickly. So you need to be able to figure in things like taxes, interest and other things that will eat at your profits over a period of time.
The market is good and much money can be made in it. It is just waiting for the right investor.
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4 Responses to “How to Get Started in Investment Properties”
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How do you get started in investment properties with little cash out and little repair know how??
Also how do you choose such a property so you wont have to make major investment in repair, and what locations seem to get the best return?? ( college towns, small towns or large towns or other locations please make suggestions)
There is so much to learn and consider I'm reluctant to give any advice. There are books written about this, get one of those is my advice. I'd reccommend "The Five Magic Paths to Real Estate Investing" (stupid name, but good book) or "How to Find Hidden Real Estate Bargains", but there are many many other good ones (by the way, the ones I mentioned may be out of print for all I know - I haven't read them in a long time).
References :
our 1st investment was one that we actually lived in and then used it as a rental. Our 2nd and 3rd were both duplexes bought withing a month of each other.
We went to a mortgage company and had them search for the best loan possible for us. On each location we didn't put any money down.
As far as the know how of repair we know nothing, that is why when things go wrong like plumbing we call a plumber.
We went for the places that are not top quality but also not trash. Made sure to crunch the numbers many times. Like what the rent will be and what do we have to pay besides taxes and loan. Like with one we had to pay the heat and water.
If you are thinking of doing to get rich quick you wont. It takes time to get your money back and get the money rolling in. Don't forget your place also won't be rented all the time and you might get someone who you have to chase the rent check every month.
Have an apartment finder help you rent the place it is well worth the money/fee and they also put together the lease/contract.
References :
I searched the internet and found a useful free site below on buying investment properties.
References :
http://www.investmentrentalproperties.com/