How Can I Start Investing In Real Estate?
Question: How would you start in real estate investing? How would you know who to trust?
Answer: Just by reading the paper, checking the classifieds and speaking with local people you already have general notions regarding prices, maintenance, local rental rates, demand and such.
Local newspapers are great sources of market intelligence. Look for new roads, schools, malls, office buldings, etc. to see where development is headed.
The next step is to look for a suitable first property. Depending on your market that likely means a duplex, triplex or fourplex where you live in one unit and rent the rest. Most lenders regard such properties as “owner-occupied– homes and that means you can get financing with little down and the best rates. No less important, the rent from the other units will offset your costs and make it easier to qualify. Owning such a property for several years will teach you much about property management, repairs and related subjects.
As to who to trust, the best approach is to speak with as many brokers, lenders, lawyers and insurance brokers as possible. Explain your interests, see who makes sense and who wants a long-term business relationship. In addition, visit the library and go through books regarding real estate investing, financing, negotiation and brokerage. Avoid those titles that promise instant wealth.
Lastly, take the basic course in your state to qualify for the real estate license test. Such classes offer substantial information and may lead to a new career.
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Syndicated originally by Content That Works and posted with permission.
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