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Dec 12

ADVICE FOR BEGINNERS INVESTING IN REAL ESTATE

Follow these rules

Follow these rules

ADVICE FOR BEGINNERS INVESTING IN REAL ESTATE

Investing in real estate has caught the eye of many and enticed a few to play the game. There is money to be made as seen on the tv shows, however what they don’t show you is the learning curve beginners must go through before cashing in on that big payday. Following are some tips to help keep you on the road to investing in real estate and will help make the road a little less bumpy.

REAL ESTATE INVESTOR’S ASSOCIATION AND NETWORKING

The best education I’ve ever got was from any REIA meeting I’ve attended.  That’s where you will find your beginners to the much experienced, investing in real estate. Whatever niche you pick, wholesaling, fix n flip, buy and hold, REO’s find the people that are successful in those areas and copy what they are doing, learn from their mistakes. Rest assured they have made some along the way, find out what works and what doesn’t.  I ‘ve approached many investors in REIA meetings that were willing to answer questions and give advice.

INVESTING IN REAL ESTATE BASICS

When investing in real estate, the rule of thumb is to run it like a business. Whether wholesaling, fix n flipping, or buy and holding,  you will need to have basic knowledge of income and expenses; profit and loss; tax deductions, know how to manage costs and so forth. A good accounting software such as quickbooks can help you keep all of your record keeping in order and insure you get all of your tax deductions. Your numbers extend further than your real estate deal. Be aware of the whole picture. Robert G Allen’s, Ultimate Real Estate System is among one of my favorite and most informative product from a guru. It is filled with some great basic information that is useful for beginners. I have found most of Robert Allen’s material to be no fluff and lots of substance.

MAKE OFFERS

Get in the habit of making offers- if you are not making offers, you are not in the game.  It irritates me when newbies look at retail prices on the mls and won’t even go look at a property because of the price tag.  They fear the number they have in mind would never be accepted, well, you will never know the answer if you don’t ask the question. In this business you will need to get over your fear of rejection fast! Get the offers in and you will be surprised what banks, estates and even motivated sellers are willing to accept.

PICK A FARM AREA AND BECOME AN EXPERT

Trying to get a grasp on different neighborhoods at once can be overwhelming. Pick a farm area, learn the market well and once you have mastered it then move on to another area.

DON’T GIVE UP

Rejection is very frustrating for most and the number one reason new investors will quit. Make an effort to keep moving forward, whether looking for motivated sellers or making offers on REO properties, eventually things will start coming together and you will start finding those diamonds in the rough!  I always like to reflect on a saying from Alan Cowgill, “some will, some won’t, who cares…someone’s waiting!”

SET REALISTIC EXPECTATIONS

Most newbies investing in real estate are entering the game after seeing some infomercial from the late night real estate gurus promising overnight riches. Puhleaze! Don’t fall for this trap! Set realistic expectations for yourself and realize there will be many learning curves to work through and building wealth through real estate takes time. Seriously, if investing in real estate were that easy, everybody would be doing it!

Good luck, and happy investing!

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