The Beginner’s Guide to Real Estate Investing
Getting started in the real estate investment game can be a little intimidating. But if you’re ready to commit yourself to this potentially lucrative journey, you’ll need to set procrastination aside, dive in, and start learning.
I cannot stress the word learning again too much. Beginning now, by reading this blog, and researching, you’re taking the first step. But there’s a long way to go. Learn enough of the real estate investing lingo to begin formulating your business plan. As you are researching, actually write out your plan, and make notations as to what further questions you’d like to learn more about. Bookkeeping skills will be very important to your real estate investment success, so get used to taking notes and recording everything now.
At some point, you’ll be wanting to reach out and network with other local investors. This exercise will also help you improve your investing vocabulary. Don’t be afraid to admit you’re a newbie. It’s much safer than getting in over your head trying to impress! Besides, many investors are interested in teaching-while-interning the student, and you might be able to get some hands-on experience while under a colleague’s wing. The first person you call is YOUR REALTOR. After you’ve broken the ice on the topic of real estate investing, you’re well on your way.
Some of the topics you will find helpful to discuss as you get started include:
- Become location savvy. Know the neighborhoods in which you might want to invest. You realtor is your expert here.
- Learn the fine art of negotiation. If you do not already have experience in negotiating, you’ll want to gain this strength as early in your studies as possible.
- Learn about comparison shopping for mortgage rates.
- Cut corners and DIY your unskilled labor whenever possible, with reason of your own skill set. There is no need to hire out for every single muscle job in your investment property. Roll up your sleeves and get involved.
- Consider what type(s) of property you will purchase for investment. There are many options on the market in both commercial and residential categories.
- Will you form an LLC to invest under? There is much to learn about the difference between investing under your own name, or under a DBA.
- Temper your expectations. You must invest your time as well as your money in order to make informed decisions. Congratulations for being on the right track!