Help me understand

I'm fresh out the womb about Real Estate so I need serious help about this industry. I see alot of people saying you need to know the basics of Real Estate first.

Please let me know what are the "Basics" of Real Estate? I need specifics. Help me out please....

Edited: 06/26/2010 at 05:44AM

Tom C

Real Estate Investor · Ohio

1068 posts
1200 Influence
4 Awards

Icon_minipost Aug 21 '08, 11:35 PM

spend a lot of time on this site and then come back with specific questions. If you are not willing to work a little, you might as well give up right now.

Edited: 06/26/2010 at 05:44AM

Davin Wright

Real Estate Investor · alexandria, Virginia

22 posts

Icon_minipost Aug 21 '08, 11:52 PM

I'm willing to work as much as I can. I just want to know what are the basics to Real Estate that everyone is acquiring.

Do u know what the Basics to Real Estate are Tom C?

To my understanding their are no basics to Real Estate.

If you don't know then I don't need your criticisim.

Edited: 06/26/2010 at 05:44AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11855 posts
75501 Influence
15 Awards

Icon_minipost Aug 22 '08, 01:04 AM

If you're asking for a response that give you all the "Basics of Real Estate", then Tom's answer is fair. Do some reading here, and you'll learn a lot. Go to a bookstore or library and pick up a few books on real estate, and you'll get a more organized view, though often less real world experience and fewer hard numbers. I'd hazard a guess that, yes, Tom does know the "basics of real estate". But more specific questions will get more more specific answers.

Here's the ultra readers digest version.

If you want to fix and flip house, buy them at 70% of ARV, less the costs of repairs. Fix 'em, then sell 'em. Pocket 10-15% of ARV, less taxes.

If you want to have rentals, buy them at a price where 50% of the rent, less your P&I payment, will give you $100 in cash flow. Pocket $100 each month.

If you want to wholesale, build a buyers list of other investors. Figure out which kind (above) they are. Buy houses cheap enough that you can take a few percent then sell the house to your investors based on the above guidelines.

If you want to develop, buy some land. Build some houses on it and sell them for more than it cost you to buy the land and build the houses.

Edited: 06/26/2010 at 05:44AM

Jon Holdman, Flying Phoenix LLC

Glen Andrews

Real Estate Coach · Oviedo, Florida

36 posts
29 Influence
1 Award

Icon_minipost Aug 22 '08, 01:14 AM

Davin,
The basics to real estate investing are

1. Wholesaling
2. Retailing
3. Subject To Investing
4. Lease Option
5. Options
6. Short sales

If you're going to get into real estate investing you should learn them all or you'll be passing up deals where you otherwise could have made money.

Hope this helps!

Edited: 06/26/2010 at 05:44AM

Davin Wright

Real Estate Investor · alexandria, Virginia

22 posts

Icon_minipost Aug 22 '08, 01:43 AM

Thanks for the information. I will learn all of the real estate investing basics and techniques that are involved.

Edited: 06/26/2010 at 05:44AM

Account Closed

805 posts
380 Influence
2 Awards

Icon_minipost Aug 22 '08, 01:55 AM

Originally posted by Davin Wright

Thanks for the information. I will learn all of the real estate investing basics and techniques that are involved.

Wow, then you will certainly know more than those of who have been at this for 20+ years.

Let's step back a moment, shall we?

When someone says you need to learn the basics they are not referring to list of items you check off.

When you first posted I almost replied for you to learn the time value of money because all investments involve TMV.

The basics of real estate, or any other business, is not something someone can explain in a sentence or two. Heck, I doubt it is something someone could fully explain in a few hundred pages. In fact, you can read any book out there on the subject and from book to book you will find overlap AND wide divergence in the basics of investing in real estate.

At a very base level, the basics are buy lower, sell higher, make some profit while holding. But that does not help does it? OF course not.

So, let's start at the beginning. Why do you want to invest in real estate? What types of real estate do you find interesting.

Now, from that starting point, there are lots of people here who can help you.

Edited: 06/26/2010 at 05:44AM

Ned Carey

· Maryland

255 posts
1244 Influence
1 Award

Icon_minipost Aug 23 '08, 11:05 AM

Originally posted by Glen Andrews

Davin,
The basics to real estate investing are

1. Wholesaling
2. Retailing
3. Subject To Investing
4. Lease Option
5. Options
6. Short sales

That list is a start. But I think there are some things that are more basic. You need to know how to evaluate a deal. You need to know what makes a good deal. And you certainly need to know some of the strategies, that would be Glen's list above. Then you need to know how to apply them and put the whole thing together.

Edited: 06/26/2010 at 05:45AM

Vicky Blacknall

Real Estate Investor · Owasso, OK

21 posts
1 Award

Icon_minipost Aug 24 '08, 02:44 AM

Davin,
I would suggest as learning tools, to get acquainted with your local REIA and some area investors. It's really hard to begin without at least someone who knows the area and is willing to help you ask the right questions before investing. Better yet, you might meet a mentor.

Vicky

Edited: 06/26/2010 at 05:45AM