In-spite of all the ups and downs of the real estate market, smart real estate investments has contributed to the making of more millionaires than any other investment in the US. It also has proved to be one of the safest investment options in any economy, the trick is to buy smart. For that we just need to know the rules of the game.
Here are a few rules I have picked up over the years by working with real estate investors as a realtor and as a partner and also, by having invested a great amount of money time and energy in to the education and practiced of real estate investing.
First and foremost, educate yourself by reading real estate investment books, attending real estate seminars by active and local investors, by participating in webinars for good ideas, by attending local real estate investment club meetings (feel free to contact me for a local list them) or save some time by investing big bucks ($10,000 to $30,000 +) on a personal mentor, real estate guru or coach(feel free to contact me for a local list them). Apart from learning all you can about the different strategies of investing in real estate you can also start creating strong relationships with like minded individuals that will be willing and able to offer you valuable insights. Prepare to spend countless hours of testing different markets (cities,zip codes, neighborhoods) until you find an area that you feel comfortable with and one that fits your niche (short sales,bank owned property, probate, etc…), you also need to invest time and money in marketing (online and offline), in order to start creating your ideal buyer and sellers list.
At this point, if not before, I advice you to start creating a team which would include a real estate investor friendly realtor with experience in the state, city or area that offers you the maximum return on your investment, a real estate lawyer, bookkeeper, a professional property inspector, lender, contractor, handyman, cleaning crew, title company and an escrow officer that fits your needs. That way, once you start finding promising real estate deal you would be able to quickly start analyzing the value of the properties and sending a well informed and intelligent offer systematical and once the negotiations start you would be able and ready to proceed with the necessary due diligence without any hesitation.
“Do not confuse motion and progress. A rocking horse keeps moving but does not make any progress. —Alfred A. Montapert “
One more thing: consider all the pros and cons of working with private money source (passive investor and hard money lenders) please have clear and precise terms in writing and If you decide to bring in a partner in to the deal, make sure he or she puts in some skin in the game, meaning two or more of these examples ($$$, work, experience, contacts, and good reputation).
Good judgment comes from experience, and experience comes from bad judgment. —Barry LePatner”