where should i start to become a real estate investor step-by- step please?
Posted by admin in Finance Wednesday, 2 November 2011 10:51 4 Comments
i want to be a real estate investor but i don’t know where and how i should do that?
Posted by admin in Finance Wednesday, 2 November 2011 10:51 4 Comments
i want to be a real estate investor but i don’t know where and how i should do that?
1 Get money 2 buy a house 3 sell it
Well, that all depends whether you are rich or not yet.
I’ll assume you are not wealthy yet, but even if you are and don;t know much about real estate, do this.
Get your real estate license. It’s actually a pretty fun class, and less than 100 hours of class time in most states (if not all of them). They usually offer both full time or nights and weekend classes.
Then get your license and go to work selling real estate for a while. You’ll have 1st hand access to all the new listings and can buy up the best deals for yourself. You can start small and work your way up. You can even maintain another job and do the real estate part time for a while to learn the business.
Anyways, that’s how I did it 20 years ago, and I am retired at 45…Still work part time just for “fun”, or something like that
Good luck!
The first step you should take is to have the background knowledge in investments of properties. Go to your public library. Or, if you have internet access, you can start reading some articles on how to become a real estate investor. Ask in discussion forums, that is important, too.
After you become knowledgeable enough, then you can formally take courses in colleges that offers certifications. Don’t jump right in this classes if you do not have any idea of real estate.
You can visit this site to help you
http://www.real-estate-investing.com
There is a vast difference in being a real estate investor and being a real estate operator. If you believe in real estate as an asset class, the easiest (and perhaps best) way for a beginner is to invest in a publicly listed REIT. Some, like Cousins Properties (CUZ) are diversified – that is, they own many different types of properties (office, residential, retail, industrial, etc.). Of course, you can find REITS that specialize in each of those types as well.
If you are bound and determined to own and manage real estate directly, you’ll be both an investor and operator. My advice to you is to read, read, read.
Most folks who own properties directly start out in residential. There are several reasons for that – it’s the lowest cost way to own real estate, there is usually always some demand for it (everyone needs a place to live), and it is more accessible to the average person (that is, we all know what a decent house looks like and what the majority of the issues that face a homeowner are). That said, it will not necessarily be easy or profitable. That’s where experience comes in. You’ll either need to hire a professional management company (which will reduce or eliminate your profit) or be prepared for midnight telephone calls and late rents.
These days, you will need at least 25% of the purchase price in the form of equity – more depending on your location and the lenders which whom you are dealing.
Hope this helps!