100 Real Estate Investing Tips
100 Real Estate Investing Tips
Getting Started in Real Estate Investing
- For those who are attracted to or fascinated by the idea of becoming a professional real estate investor, it is important to consider many realities of this business. Along with all the benefits that come from intelligent real estate investing, there are also potential pitfalls that the inexperienced investor might face.
- Locate and retain an experienced, knowledgeable real estate professional to assist you. While always important to have a good, trusting relationship with a real estate agent when you look to purchase real estate, it is critical for new real estate investors. The “investment market” can be quite different from the “owner occupied market” and buyers must realize the differences to protect themselves. Your real estate professional can provide the inside information you need to make the right property choices.
- Decide what type of real estate investor you want to be. There are a number of choices, or strategies, an investor may use to reach specific income and/or asset goals. The types of properties considered, the purchase price, the level and cost of rehabilitation, if any, are only a portion of the factors that must be considered before potential properties are examined. Your real estate professional can give you the assistance you need in locating appropriate properties that fit your strategy and goals for your new investing career.
- Think about your goals and reasons are for choosing this activity. What are you looking for? Is this to become your new profession, or is it to be just a part-time, passive activity that generates positive results? Are you seeking short term income generated by quick buy then sell properties, long term income status through your becoming a landlord, or long term asset and equity growth that will provide you with a superlative retirement portfolio? Once again, the types of properties appropriate for these various strategies often differ just as the needs and desires of investors vary.
- Learn what financing options are available to you as a real estate investor. If you are not already involved in the banking or lending industry, you should do your research and personal “homework” to learn what level of financing you can obtain to purchase the property(s) you want. Unless you have just inherited a seven figure gift from that Aunt in Nebraska you forgot about, you will need a cooperative, cost effective source of mortgage financing to achieve your new investment property goals. If you begin your adventure without a helpful source, ask your real estate professional for help. He/she will only become more effective on your behalf if he/she is also involved in the financing loop.
- Become committed to being patient and realistic about the opportunities to purchase an appropriate property. Buying cost effective investment-grade real estate is not like buying a new automobile, even a very rare and expensive one. Locating property that matches your investment strategy may take a week or it may take six months. Impatience in the world of investment property, whether you are buyer or seller, can be very expensive for you. Patience will greatly improve your chances of generating the maximum income and/or profit from your real estate investments.
- Becoming a smart real estate investor can be very financially lucrative and rewarding. But it is not a get rich quick vehicle. Take the time to decide what type investor you want to be and what your goals are. Partner with a real estate professional who is familiar with the investment property market in your area. Locate financing sources that are willing to work with you and provide the funds you need quickly. And, be patient. Purchase or sell only when you have found the right property and/or the right buyer. Good luck!
Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to
http://realestatewealthtoday.com/Private-Lending-Presentation-Kit.html.
Comments (1)
Lots of great tips, Michael. It looks like the post got cut off before 100 - maybe you could do some follow-up articles to share all 100.
Joshua Dorkin, over 15 years ago