Deciding to invest in real estate is a big move for most people. It takes courage, self-discipline and self-motivation to get started and then keep going.
Before jumping right in, you need to know that it’s not a get rich quick scheme or even a risk free investment. Every transaction you try to make is not guaranteed to make you a profit. You need to prepare yourself as best you can before going all in. These tips will help make sure you are heading in the right direction before you put money into an investment.
- Decide what type of real estate you want to get involved in. There are several options you can chose from. These are just a few:
- Buy and Hold
- Commercial/ Residential
Before making your decision take into account your needs and what skills and talents you have personally. Then think about the connections you have with other people or companies. If you are skilled at plumbing or electrical work, you might be able to handle a fixer-upper or even be a landlord. If you are investing in your future and can hold off making money right now, you can go for a buy and hold strategy.
Whichever way you go make sure it’s the best for you and what your knowledge and circumstances are.
- Determine a location. While the option is there for you to purchase real estate all over the U.S., when you are first starting out, you might want to stick within your state. That way you only have to worry about your state’s real estate laws, since they vary from state to state. You can either stay close to where you live or if you are willing to drive a little bit, you can look at various areas. It is important that you do as much research as you can about real estate in your prospective areas.
- Look at your budget and available funds. Decide how much money you are willing to invest for your first time. Also take into consideration how much money you could get from applying for a loan. Your credit will play a huge role in this, so make sure you are taking care of your own finances first.
- Learn your state’s real estate laws. This can seem very time consuming and tedious but the last thing you want to do is something illegal, even if it’s by mistake. It is your responsibility to find out about laws, regulations and guidelines before you start. If you get into trouble, it’s no one’s fault but your own and you will be held accountable.
- Talk with friends, family and other relationships and connections you have. It will surprise you how many people around you know of a property for sale. These people may also know firsthand how well the previous owners took care of the place. This is very useful information to have; take advantage of it.
- Take action. Once you have made up your mind which property to invest in, you have to just go for it. You can’t sit back and wait for the next best thing or for someone to guarantee that you will make a profit. That’s not going to happen. Sometimes, you have to take a risk. Do your research, understand what you’re getting yourself into and get moving.
Kathryn Mott enjoys writing and learning about real estate. She works for Professional Marketing International. A company that teaches entrepreneurs the skills they need to be successful in real estate. Learn more about what their clients say here: http://www.youtube.com/user/pmieducation.