I was reading a blog page and the advice given was, to paraphrase, if you can't create a budget and statement of financial condition (balance sheet) for yourself you shouldn't be investing in real estate.........Yet.
So my question to you is: For someone who is completely new to all of this, what is the best first skills they should acquire?
I will start it off with:
A. Create a balance sheet for themselves
B. Create a budget for themselves
D. Understand the time value of money
E. Understand why leverage isn't a bad word
What say you? What are the first skills one should obtain to get started?
I'm a bit confused. What area of real estate are you interested in? Make a general note on what you see yourself doing in the future and I'm sure you will get better input.
I am a little confused also but I think I know where you are going with this It sounds like you are referring to getting into real estate flipping and/or buying rentals? Learning the lingo would benefit you but i think there are more important things to learn first.
1. Obtaining Value Accurately: I believe the single most important thing is to be able to obtain the value of a property. Whether it be the current value, or the after repair value.
2. Networking: This will help you get many perspectives from individuals who have experience. Also it will help you in connecting with industry professionals (i.e. Brokers, Lenders, Flippers, Landlords, Agents, Contractors Appraisers, Wholesalers). Pick the brain of these people.
"if you can't create a budget and statement of financial condition (balance sheet) for yourself you shouldn't be investing in real estate"
where did you get that from? that's why you hire an accountant that specifically knows real estate. don't just go looking for a CPA.
you need to know how to analyze the report, which is pretty simple.
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