Real estate investment tips

Whether you are BRAND NEW to real estate investing or an expert in the game, it’s critical that you understand these 7 Simple Steps to real estate investing.

First things first…

•   Real Estate is NOT a get rich quick scheme. However, if you learn the foundations and put them into practice, you will make more than enough money to realize any and all of your dreams and goals.

•   The real estate bubble is not going to burst! The real estate market will, however, shift and the real estate market will change – just as it always has! What’s “hot” now may turn ice cold in the next 3 years (or perhaps even 3 months). But, there are ways to “bubble proof” your real estate investments. It’s actually quite simple.

Did you know that in the United States, in 1975, the median home price was $33,300? In 2005, the median home price was $195,000. Historically, the average home doubled every 7 years. If you do the math, it should be well over $200,000.

OK… Now, having said that… The real estate market WILL change and what is “working” today in real estate may not in the future…  The rental market was strong a decade ago, but has been soft in recent years. We are getting ready for a turn once again.

Real Estate IS a cycle… and cycles have some degree of predictability. With predictability, you can grow your real estate business into a cash-producing, profit-pulling machine that runs itself WITH the changing real estate market trends. It is still possible to make money in real estate. In fact, now is just as good a time as any to get started in real estate investing.

But, you’ve got to make wise investments. Sure, you may make some SERIOUS cash in pre-construction, but what happens if (no, not if – when) the market shifts and there are suddenly 35 identical properties on the market for sale in the same building? How long can you afford to carry a negative cash flow on the property?

Or how about taking over property ‘subject to’? Sure, it’s a great strategy and lenders may be inclined to turn the other way and not exercise the “due on sale” clause as long as the interest rates are at rock bottom prices (You know, those sellers that you’re usually taking property subject to from usually don’t have the lowest interest rates, right?) If the interest rates spike to 10-11%, don’t you think lenders might be MUCH MORE inclined to exercise their option to make you pay off the 6.5% note?

What this means is simply that you must be experienced in the basics – the tried and true techniques, strategies and systems that have worked in the past, are STILL working and will work in the future. You’ve got to have all the tools in your bag so that you can go with the flow and not be affected when real estate markets begin to shift (which they are already in the process of doing, in case you’ve missed that memo! ;-)

Step #1 - Set your plan: Figure out what your long term real estate goals are (aka retirement and wealth building) and figure out what your short term needs are with regard to making money in real estate. Then, set up the proper entities and put the plan in place. 

Step #2 - Determine what your target market will be: You cannot be all things to all real estate markets. If foreclosures appeal to you, start investing in the foreclosure market. If you want to be a landlord, look to out of state owners to focus your real estate marketing efforts.

Step #3 - Be consistent and persistent: Real Estate is not a get rich quick scheme. Real Estate is get wealthy over time and put some quick cash in your pocket today. You’ve got to follow your plan and stick with it to see real results in real estate. You’ve also got to continue to increase your education and your experience.

Step 4 - Don’t fall into the “Analysis Paralysis”: Learn to analyze properties quickly. Don’t get caught up overthinking. It’s quite simple actually: What’s the property worth? What does the property need for repairs? And how much can you get the property for? It all comes down to numbers!

Step 5 - Become a master of finance!: Real estate is the business of marketing and finance. You must learn about mortgages and interest rates and loan programs that are out there. You must know how to use finance to negotiate your deals and to sell your properties.

Step #6 - Become a skilled problem solver: The reason you will get real estate deals that others don’t, is because you are able to solve people’s problems. Anything goes on the real estate playing field. You’ve got to be ready!

Step #7 - You must continue your education: It is important that you are always investing in your education and learning new tactics, strategies and tips that will help you make more in real estate.

If you enjoyed this article, make sure to look up the other articles discussing The 7 Simple Steps To Making Money on Real Estate.  The next article discusses Step #1 – set your plan in further detail!

It is very important to follow these tips in which you are involved in a real estate contract. These tips will sure help you a lot for your future plans. Thanks for sharing!

One of the most important aspects of real estate investment is to make sure that you get the highest return possible. This means buying properties at the lowest possible price, putting in a minimal amount of money in repairs and upgrades and reselling at the highest price possible. This can be a very delicate balance and will take practice to perfect.

You will find it difficult to find a US bank that is willing to give a loan to a foreigner, especially now.
Check in Canada if a bank is willing to give you the money to invest abroad - though that might not be too easy either.
I usually buy my properties cash and then take out a home equity loan on them. The rates for a second mortgage are not as good, but much easier to obtain.


Money Making Opportunities

It is 100% true. You shouldn't expect easy and fast money. Real estate business is serious and you must know what, where and how to do. Besides, you should never stop learning.

Money is made in the buying, not the selling of property - contrary to popular belief.

If you buy a house for the right price you will always make money on the sale, it's only a question of how much.  Focus on the value of the purchase as much as the potential for gain.  markets can be fickle, but if you bought the house for a bargain price to start off you can be pretty certain that even if you're forced to sell at an unfavourable time you will still come out on top.

really true u have posted good and accurate steps for investment in real estate.i would like add my view here.
Real estate investing means purchase, ownership, management or rental/sale of real estate for profit. Many people find it difficult to invest. It requires a lot of cash. Are you interested in becoming a real estate investor? To become a successful investor you should be determined and flexible. There are a few tips that will help the prospective buyer to become a successful investor.
A investor should decide whether his investment goals are long term or short term. As the investor keeps paying the mortgage amount, his dues becomes less and his equity in the property increases which adds to the overall net worth. If an investor does a real estate investment for short term he can earn a decent profit. For example: If you have purchased a property for nearly $50,000 which needs some repair work to be done which costs nearly $10,000 and the selling costs total $5,000. Then the total cost would be $65,000. You sell the property for $85,000 after 6 months of purchase. You may have gained a net profit of nearly $20,000.
Good location also plays an important part while investing in a property. When you plan to buy or rent a property, the first thing that comes to mind is this is a place where someone is going to live. You can improve the property but can't move the location. Try to choose a property in busy towns or cities rather than choosing in a country. There are more people in towns so there will be more demand for your property
If you find foreclosure property or HUD repossessions then you get a good amount of profit from the property. If you want to find good places for bargains, take a look at local newspapers, courthouses and real estate investor websites that will enlist all types of properties. Before selecting a property, check whether the surrounding areas are well maintained. If the neighborhood is run down or there are many boarded up houses, it may not be a good bargain after all.
Take time to study the property. Take your time to become familiar with the property. Do a thorough analysis of the real estate before telling "yes". If you find certain complications in the property then it would be better to say "no"
Sharpen your negotiation skills. Find out terms that are used by agents and sellers. This will help you in knowing what the other person is telling and not get confused. An investor should have negotiation skills.
If you follow this real estate investment tips while looking for a property you will be able to achieve your goal of increase in net worth and generate a positive cash flow.

Real estate investors can browse hundreds of free real estate investing articles to increase your investment education. Topics include creative real estate, wholesaling, 1031 exchanges, asset protection, commercial real estate, hard money lenders, IRA investing, landlording, lease options, mobile homes, no money down, owner financing, rehabbing, tax liens, and more.