There are a great many books and web sites devoted to real estate investing out there, but
most of them concentrate on one specific area of investing. It's often hard to find a general
description of real estate investing, one that lists the various real estate investing strategies and
how to get started. That's what this article will set out to do.
Before beginning, you must understand that real estate investing is not a getrich quick scheme.
Real estate investing can, and will, make you wealthy, but it certainly won't happen overnight and it
will require work. As you perfect your technique and gain experience, the amount of work needed to
gain a lot of money will reduce, but it will take effort and persistance to make it there.
If you're completely new to real estate investing then the only sort of investing strategy
you're likely aware of is rental properties.
Landlording has been around since there have been houses and people to rent them to, and it
will continue to be a wealth builder. In fact, most of the 'no money down' real estate strategies
you hear about still include rentals as part of their plan. Still, there are other ways to make
money from real estate investing out there.
The next most 'traditional' method is to buy a fixer-upper, fix it up, and then sell it for
a profit. This is commonly referred to as 'rehabbing' and is a very good way to make a lot of money
in a relatively short period of time. Most rehabbers won't even look at a property unless they can
make at least $20,000 of profit, and this is usually within 3-4 months time. Rehabbers tend to be
experienced investors with available money, or have partners who help provide any extra cash required.
But if you're just starting out you likely won't have access to large amounts of money. One
way to get involved in this area of real estate investing without needing any money at all is to
'flip' houses to these rehabbers.
What this entails is you going out and finding these fixer-uppers, noting all the work
required to fix the place up. You then place a low offer in to the owner, taking into account the
fix up price and some built in profit.
Once you have the house under contract you then flip it to a rehabber for a small fee. This
can result in several thousand dollars for you, without you having to spend a dime. 'Flipping'
properties can be a great way to start your real estate investing career.
Another 'no money down' technique that's popular on the late night infomercials is called
'lease optioning'. This is basically a rent to own strategy that allows you to control a property
without ever taking ownership of it.
It's a slightly more complicated strategy that warrents its own article, but it does allow
you to make money in several different ways, each without ever having to spend any of your own money.
If you're not put off by longer term investments then lease options are definately worth more research.
There are other strategies that involve foreclosures and getting the home owner to sign the
deed over to you, but for now I'd suggest learning more about flipping and lease options as
entry-level real estate investing strategies.
How do you find properties that would make good real estate investments? Again, an entire
article can be devoted to that, but there are basically two ways: you go looking for them, or you get
them to come to you. The first way involves reading the newspaper classifieds and scanning the
Multiple Listing Service (MLS). This is where having a great real estate agent is a must - they can
get you more details on homes than you can view on the mls website, and can often let you know of
great deals before they even become available to the general public.
Having home owners contact you means setting up an advertising campaign. This can involve
placing ads in the newspaper, placing bandit signs at strategic locations around town, starting a
direct mail campaign, etc. There are many ways to let people know that there's a new real estate
investor in town, and it would be in your best interest to try each of them to see which ones work
best for you.
Whether you decide to go looking for deals, have them come to you, or both, they key is to be
persistant. Real estate investing is a numbers game - most of the time you won't be able to make the
deal work, but every time you do it translates into thousands of dollars for you. The more owners
you talk to, the more deals you'll be able to do, the more money you'll make.
I hope this article gives you a bit of an idea of what the world of real estate investing
is like. There's a lot to learn out there, and all of it is very interesting. Find the area that
interests you the most, then get out there and start talking to home owners. Don't be discouraged
if you're getting turned down a lot - just remember that when it does pay off, it will pay off big!
About the author: Adem Hamidovic is a part time real estate investor and operator of
www.ProfitPiggy.com, a website devoted to
new and experienced real estate investors alike.
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