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Beginning
Real Estate Investing
If you have been thinking about getting involved in real
estate and wondering “Where do I begin in real estate
investing?” then you’re not alone. There are many people
that would like to know how to begin real estate investing
but continuously procrastinate because of fear of the unknown.
Most people never begin real estate investing because it
seems so complex and complicated. So let’s talk about how to
begin investing in real estate.
For most people the single biggest and most profitable
investment they make in their lifetime is the purchase of their
home. If you’ve already done that than beginning real estate
investing will be simple as you learn more advanced
strategies.
Beginning Real Estate Investing 101
What are your real estate investing goals and objectives?
Are you looking for passive income to support you in twenty
years? Are you looking to make $10,000 cash this month? Are
you looking to get rich in real estate fast?
All can be achieved and are much easier than you think.
Let’s put together two plans for how to start investing in real
estate. One plan designed for making money fast without using
your own cash or credit and a second plan that builds wealth
slow over time.
Plan 1 - The Real Estate Investing Get Rich Fast Plan
Given the choice of getting rich fast or slow I’m all for
getting rich fast. When I started I did not know about
wholesaling and how you could buy and sell properties
without using your cash and credit. Had I known how to start
investing in real estate without using my own cash or credit I
would have chosen it. Unfortunately I did not know the
wholesaling techniques and formulas available in the book “Real
Estate Magic 101 – How To Get Rich In Real Estate Even If You
Are Dead Broke!”
Wholesale Houses For Quick Profits. By wholesaling
houses you can generate cash to pay off your debts and build up
a cash reserve. Wholesale profits of $5,000-$15,000 are not
only fair and reasonable but easy to achieve. A realistic goal
for someone who is beginning real estate investing full
time is 1-2 houses per month. There was a time when my partner
and I were doing 2-3 houses per week so I am talking from
experience.
If you are really serious and want to know a step by step how
to start investing in real estate through wholesaling then be
sure to check out the
Kick Ass Wholesaling System.
Why wholesaling is the best way when beginning real estate
investing? Knowing how to buy at deep discounts means you are
profitable on the property from day 1. Most people and so
called real estate investors buy property and pay retail prices
than hope that appreciation increases their property values.
Buying wholesale insures profits! A common misconception for
beginning real estate investors is that buying wholesale means
buying junk properties. Not true. We buy both ugly properties
needing repairs and ugly situations (divorce, death, two house
payments, etc).
Rehab The Best Deals: OK, your wholesaling business is
going well and you’ve learned how to buy at deep discounts and
sell for quick profits to other investors. Great. Now’s the
time to get your feet wet in the rehab business. Now I wish I
could tell you that it was going to be easy and handyman or
contractor you work with was going to be the joy of your life
but I can’t. Will there be bumps and bruises? Yes. Will it be
very profitable? Definitely if you listen and do it right.
Where do I begin in real estate investing if I want to
do my first rehab? Start with one of your own wholesale deals
that have a big fat profit in it and rather than wholesale the
property to one of your investors keep it for yourself to
rehab. I call this keeping the home runs for you. After a few
home runs you’ll determine how much rehabbing is right for you.
Beginning Real Estate Investing Tip:
An advanced exit strategy when you buy fixer properties is to
sell the house on what is called a
Work For Equity Program where the tenant buyer makes all of
the repairs with their time and own money. This can realize
twice the profits or rehabbing alone!
Next, you’ll want to incorporate plan 2 to build wealth.
Plan 2 – How To Start Investing In Real Estate To Build
Wealth Over Time
Wholesaling and rehabbing are great for beginning real
estate investing because you can quickly generate cash
profits. But real wealth is achieved in holding real estate
long term. Your long term real estate investing goal is to
purchase rentals with positive cash flow that will pay off over
time. In
Real Estate Magic 101 I show you how to evaluate properties
and what to buy so follow the guidelines in the book.
A few things to remember when buying rentals.
1.
Only buy if you have positive cash flow
after all expenses.
2.
Use a property manager and expect to pay
10% property management fee.
3.
Purchase on a 15 year fixed loan if
possible.
4.
Shoot for a 25% cash on cash return.
When buying rentals the most important thing is net positive
cash flow. If you are losing money every month you are not
investing!
A Reasonable Goal To Get Wealthy
Make it a goal to buy 1 rental property per year for the next
15 years. If you were asking how to start investing in real
estate there is a simple plan that will get you wealthy over
time.
Think about it. In 15 years you will own the first property
free and clear. Rents and property values have increased and
every year another house will be paying off. To increase your
wealth you can apply extra principle to your payments. At this
point you have cash flow, a boatload of equity, and appreciating
assets. If you need cash you can sell a property or refinance
it depending on your needs and goals.
Success is that easy! One house a year is a piece of cake,
imagine if you did 2 houses per year?
Beginning real estate investing is not as difficult as
it might seem. The key is taking action first by increasing your
knowledge and second getting involved and moving forward. Just
one house a year can make anyone rich! | 
