If you have the cash, investing is a great way to further empower yourself financially. Compound growth of investments will give you sense of accomplishment – there’s nothing like seeing your nest egg grow thanks to smart buys.
It’s not a hard thing to get into, really. The principles of investing are near-universal, and by learning these strategies, you will be able to become a savvy investor who can make great decisions about an investment portfolio and financial future. By investing, you are not only creating great financial habits, but you are putting your money to work for you. Those who make great money in this world have learned that you shouldn’t have to work for your money 24/7, but your money should surely be working for you 24/7.
A very popular type of investment is real estate, but it’s a kind of investment that does require a certain kind of person. You cannot just buy into many real estate investment opportunities for a few hundred dollars like you can with securities traded on the stock market. Most real estate investment opportunities take hundreds of thousands of dollars that must be borrowed from a bank. It is a much larger investment than most investors are willing to make on a single stock.
You must make sure that you are ready to take the plunge on your first real estate deal. Many stories have been told of novice investors who have lost their life savings on a “perfect deal”. By arming yourself with knowledge, you can avoid costly mistakes to the tune of hundreds of thousands of dollars.
So, to help you on your quest to real estate dominance, here are a few tips and resources that will help you easily get into real estate investing, full of the confidence and knowledge that you need. You don’t need to be a world class millionaire investor to invest in real estate, but you should arm yourself with the knowledge you need in order to make educated financial decisions.
Get Your Real Estate License
When you are looking at getting into real estate investing there are a few things that you need to take into account. If you want to be heavily involved in real estate investing, and possibly make a career out of it, you need to take into account that there are realtor and broker fees that you will have to take out of your potential profits when you are looking at getting into a deal.
Some prefer to just get their real estate license and skip over the middle man. This is going to save you thousands of dollars in the long run if you are planning on doing real estate investing for the long haul.
Getting your real estate license requires that you have had a clean record for at least three years. Most states require that you take at least 90 hours of real estate classes, and that you pass a state mandated exam. Having your real estate license can also lead to a lucrative career as a real estate agent. To be a successful real estate agent, you must make sure that you are marketing yourself to potential clients.
Study, Study, Study
Being a savvy real estate investor is a career just like anything else, which means it takes a lot of time to gain the skills needed. The thing about investing in real estate is that there are big amounts of money at stake during your learning period. Instead of just jumping into your first big deal right off the bat, you need to study up. There are resources online that give individuals the ability to learn about the ins and outs of real estate investing. nreionline.com is a great resource for individuals who are looking for in depth information about real estate investing.
There are also many investment groups out there which offer monthly meeting for experienced and novice investors alike. These meetings are a great place to find a mentor. You can find an investor who has had success in the real estate market and start asking them questions. By learning from their mistakes, you can skip over painful steps that you may have otherwise had to learn the hard way.
Get A Job Or Internship At A Property Management Company
Many people jump into the world of real estate investing without knowing how much commitment really goes into it. Owning a house in and of itself is a huge commitment, but owning a rental property is a whole different story. Repairs and maintenance of a rental property are pretty regular. Becoming a landlord can be a huge weight on your shoulders if you do not know what you are getting yourself into.
By getting a job or an internship at a property management company, you will be able to learn the ins and outs of real estate maintenance and management. Realistically, you would be able to learn the skills necessary for being a landlord over a quick summer of work. Taking a job in property management would also allow you to find out whether it is worth your time and money to just hire out your maintenance to that kind of company. Either way, you will know the crucial skills needed in order to take care of problems as they arise.
Buy A Bank-Owned Property
Buying a bank-owned property is a great way to get an amazing deal on your first real estate investment purchase, but it is no walk in the park. Investors who are looking for these great deals must be willing to wait weeks, and sometimes even months to close the deal. Making this type of deal is complex, requiring mountains of paperwork and countless hours of convincing the bank to let go of their property at a discounted price. However, if you are willing to take the time to learn how to buy a property from the bank, you can have a great amount of instant equity in your home.
The first thing you need to do when buying a bank owned property is look for foreclosed homes. Usually banks have lists available of properties that are on their books, and you can probably find these online.
You must get an appraisal of the property in order to make an offer on the property. You also should get a home inspection for this house, as many of these homes have been on the market vacant for months or even years. You also need to run a title search on the home to insure that there aren’t any liens on the home, which you could become accountable for. After all of this is done, it is time to make an offer on the home. The banks can take some time to get back to you, but if both parties agree on a price, you will be able to obtain this home at a great discount.
Invest In A REIT
Investing in a Real Estate Investment Trust is quite possibly the easiest way to invest in real estate today. A Real Estate Investment Trust, REIT, is much like a mutual fund. Companies create a complex portfolio of hotels, rental units, apartments, and housing developments that are usually income producing real estate properties. Individuals buy into these investment trusts in order to gain an additional income to their lives. It is an easy way for an individual to have an investment that they can actually use. Many Real Estate Investment Trusts offer discounts to hotels that are a part of the portfolio.
Investing in a REIT is a fairly simple thing to do. Individuals simply need to call up a broker that is associated with the REIT and make their initial deposit. The broker will go over the different assets in the REIT and where these properties are located. The broker will also go over the main parts of the trust, such as payouts, initial investment, and more.
A REIT is a good way for a novice investor to get into the real estate market for only a few thousand dollars, with the option to continue to add money into the REIT as time goes on. This is a safe way for beginning investors to get started in the world of real estate investing.