How do I start investing in R.E.?

Question

I am interested in purchasing a rental property at/near the beach.   Though I am open to non beach options and open to commercial as well as residential.   Can anyone give me some homework and some formulas to start my research?  I don't have a specific property in mind, but how would I know if I came across one?  I am willing to put in the time and look through many properties, but again, what should I be looking for and how do I know what a reasonable and max purchase price should be?  Thank you to anyone who can help a newbie.

Marty Gold · Answer

Thank you.  Are there any podcasts specifically that you can point me to?

Bhekizwe M. · Answer

hello Marty.there are books &/podcasts on rei here on BP to learn the formulas,rules etc

Marty Gold · Answer

Jim, that is great information.  Thank you for the idea, I will start searching for such groups.

As they offer possible property ideas, how will I know if it is a deal that should interest me.  Are there any general screening check lists or math formulas that can give me a general idea if I should spend time further investigating that property or move on to spend my time on another property?

Jim Keller · Answer

@Marty Gold

Marty, I know that in the beginning it's very hard to get lucky enough to find a compitaint real estate agent.   I would recommend you make a simple business card that has your name and contact with the simple sentence "I buy homes for cash".  Don't take more than 3 minutes to design this card 99.9% of them will be put in the trash can or left on a bar. You should buy a minumum of 1000 if your committed buy 5000.

Then find 2 or 4 investment clubs to attend. You should pass out your cards to everyone and I mean everyone.  Be the first one there and the last to leave.  Most of the time there is always a group that meets afterwards for coffee or drinks.  In my experience virtually all of them are the people in the club that are really working.  Tell them what you want and ask them how to get it.

You will find more deals and good business associates than you can handle...... good luck

Marty Gold · Answer

So you dont do any research and you dont run your own numbers Sergio?  you just trust a RE Agent will give you a great opportunity?    Or does the agent only give yo listings?  Couldn't that be don on zillow or something?   It would be great if I could find a smart trusted local agent as you describe, but that may take me some time to find.

Sergio Garcia · Answer

I have been fortune in my RE investments as I have a great realtor that is investor friendly. She's always on the look out for great investment properties on and off market. I gave her a list of zip codes that I wanted a daily MLS listings emailed with my property requirements. Everyday I get those MLS emails. She been doing RE a long time that I have learn a lot about the RE world.  She always willing to explain things and let's me know if the property is worth my time and money.

Having a great realtor is key...it's been for me.

Good Luck.