Advice to Beginning Real Estate Investorsby Jeanette Joy Fisher The prospect of making big money in real estate investment has always fired people with enthusiasm. If you have any doubts about that, take a look at how many infomercials deal with one form of real estate investing or another. There are a number of folks out there who made fortunes telling other people how to buy real estate. There is money to be made in real estate, lots of it, but you need to educate yourself before you begin and exercise caution in buying properties that are meant to bring income down the line. Here are some things you need to know as you begin your investment career. First, study the various ways to invest, find one strategy that you like, and stick to that strategy. Whether it's flipping houses, short sales, preconstruction, lease options, buying and renting, or whatever other strategy you're most comfortable with, once you begin making money with a strategy, stay with it and hone it until you know it inside and out. That's the key to wealth. Find a strategy that works for you and repeat it, again and again. Next, choose ONE area or geographic location that you're going to become an expert in and stick to that area. Drive around your target area often. Get out of your vehicle and walk around the neighborhood. Talk to people and let them get to know you. Let it be known that you're in the market for investment properties and that it's your intention to keep improving the homes in their neighborhood. We have actually been flagged down by sellers as we either drove or walked through our target area, offering to sell us their homes. They know us, they've seen the work we have done on other people's homes in the neighborhood, and they trust us to be fair and honest with them. That's what you're looking for! It takes time and diligence, but it can pay huge dividends. If there was only one piece of advice I could share with a beginning investor, that would be it: pick a target area and concentrate on that area exclusively. You'll know what properties are worth, which means you'll know how much money can be made on each transaction. Third, be prepared, especially at first, to close quickly. Many sellers will be in financial difficulty, so they'll need a fast close to help them get rid of their home and move on with their lives. If you're known by the folks in your target neighborhood, they've probably heard about how you came in and helped former neighbors when they really needed to sell a home quickly. They'll trust you to help them and to be honest and fair. Don't abuse that trust, but emphasize that you're also a businessperson and need to be able to make a profit in the long run, and one of the best ways to get good deals is to be able to close quickly. There's money to be made in real estate, and it continues to be one of the surest ways to build wealth in America. It just takes a strategy that can be duplicated, intimate knowledge of a target area, honesty, and perseverance. |
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