Real Estate Investing for the First Timer |
Real Estate Investing for the First Timer
You have probably read all the information on the market as it relates to real estate investing and are well aware that many of the world's millionaires made their fortunes in the real estate market. As a result I'm sure that you feel ready to throw your hat into the ring and begin your own real estate portfolio. There is certainly nothing wrong with this as an investment strategy though there are many wrong ways in which an investor can go about the process.
Flipping properties is my field of experience and a good deal of what will be discussed here will relate to flipping properties though some of the information can be crossed over into rental properties and other types of real estate investment. Even personal property can be a real estate investment. Real estate is one of the few forms of investment in today's society in which you can actually see the changes as they are occurring.
It is truly amazing to watch a property that was once neglected and in a state of disrepair suddenly spark back to life right before your very eyes. There is a lot of work involved in this process though and this is often overlooked. Much like labor in light of birth. The pains are quickly forgotten when looking into the face of the outcome.
Keep these things in mind for your first time and you should be well on your way to future success. You should also realize that the first few investments are learning experiences more than anything else. If you do not achieve the success you were hoping for (or success to a lesser degree than hoped) you should not give up on the dream all together simply learn from the mistakes you will make along the way as well as the mistakes that others have made.
Real estate investing is not an exact science. There is no formula in this business that guarantees success. Even seasoned professionals will find the occasional bump in the road even on a property for which they had high expectations. Stuff happens along the way that cost money, delay the project, or set the project back. These things are stumbling blocks no doubt but should not be allowed to derail the entire project. When these things happens go back to your original plan, reassess the situation and create a new plan with the necessary adjustments in mind. The key is in sticking to a plan the entire time and never throwing the plan out the window and flying by the seat of your pants.
Your plan will be your lifeline throughout the project. You need to have a plan and a budget in writing. One great rule of thumb is that you set aside double the amount of money you plan for in your budget. This gives you a bit of a safety net for the inevitable things that will go wrong. Things will go wrong on almost every flip you encounter. Even the seasoned professionals that have television shows about their flipping efforts encounter problems in almost every single flip, rehab, or renovation.
For your first few investment purchases it is recommended that you purchase properties that need little more than minor cosmetic repair rather than complete rehabs or renovations. This allows you to get your feet wet without the incredible risk of going off the deep end mentally, emotionally, and financially. These properties represent lower profits but also lower risk. They also allow you to gain valuable experience and raise a little capital in which to invest in properties requiring more extensive work in the future.
Keep your eye on the carrot at the end of the project. Far too many would be property investors give up just before they reach the point of true profitability. The goal is the profit at the end of the project.
653
|
Are You Committed to Your Real Estate Investment? There are many questions that should be asked before embarking upon a ... read more
Benefits of Flipping Real Estate The obvious benefit and sought after benefit of flipping real estate is the profit. This ... read more
Buying Real Estate for Your Family The very best and most enjoyable reason to purchase real estate by far is ... read more
Buying Real Estate Foreclosures When looking for a home for you and your family you will come across all kinds ... read more
Common Risks Faced by Property "Flippers" The first thing that should be noted is that flipping houses is a great ... read more
Common Risks Involved in Real Estate Investments While a good many millionaires will agree that their fortunes were made in ... read more
Curb Appeal Matters When Selling Real Estate First impressions matter most. This is one concept that many homeowners trying to ... read more
Does Staging Sell Real Estate? There is something to be said about a neat and tidy house when you are ... read more
Finding the Right Realtor for Your Real Estate Needs Whether you are looking for a home of your very own ... read more
Flipping Houses for Fast Real Estate Profit One of the rising stars when it comes to real estate investment is ... read more
Flipping Houses for Fun and Profit For those of you who watch on the edges of your seats week after ... read more
Has Television Changed the Face of Real Estate Investing? If you take a look through the television stations on almost ... read more
How to Find a Good Real Estate Investment Property There are many ways in which you can find a great ... read more
Is an Inspection Really Necessary? One question that seems to be commonly asked among those who are interested in real ... read more
Is Real Estate Investing for You? There are all types of investments in this day and age. One of the ... read more
Lease to Own Real Estate Credit problems plague people across the globe. These problems can lead to many other problems ... read more
Mortgage Advice for Residential Real Estate When it comes to owning property many people around the world will tell you ... read more
Real Estate Investing for the First Timer You have probably read all the information on the market as it relates ... read more
Real Estate Investing There are many methods for building fortunes in the world today. One of the most accessible even ... read more
Real Estate Investors Offer Perks to Retain Tenants What tenant wouldn't love the allure of high speed Internet and a ... read more
Selling Real Estate in a Sluggish Market Real estate is one commodity that many depend upon to get them through ... read more
The Flipside of Flipping Houses Television programming and infomercials of all styles will have you believe that flipping houses is ... read more
Things to Avoid When Flipping Real Estate Flipping property is rising in popularity as a form of real estate investing. ... read more
Things to Look for When Buying Personal Real Estate There are all kinds of things you will want to consider ... read more
What is Pre-Construction Real Estate Investing? The idea of pre-construction investments when it comes to real estate is actually quite ... read more
|
|
|
Disclaimer:
The Publisher has strived to be as accurate and complete as possible in
the creation of this website, notwithstanding the fact that he does not
warrant or represent at any time that the contents within are accurate
due to the rapidly changing nature of the Internet.
This site
is a common sense guide to Real Estate Investing for the First Timer. In practical advice websites,
like anything else in life, there are no guarantees of income made.
Readers are cautioned to reply on their own judgment about their
individual circumstances to act accordingly.
This site
is not intended for use as a source of legal, business, accounting or
financial advice. All readers are advised to seek services of competent
professionals in legal, business, accounting, and finance field.
Any
perceived slights of specific people or organizations are unintentional.
|