Learn Real Estate Investing, Fast

by : Mike Dodd

Real Estate always seems to rebound and investing in property becomes more appealing to more people. Like any thing else, there's a right way and a wrong way to start each deal or endeavor. Let's go over some very important things that will need to be considered upon every action, that, if ignored, can lead to devastating consequences.
1. Planning ahead. The lack of a plan is the biggest mistake new investors make. They buy a house because they think they got a good deal before planning out the details which should follow. That's no way to operate. Don't buy a home of property before creating a strategy first.
2. Thinking that you will get rich quick overnight. Watch out for these self-appointed gurus who have infomercials and make it look and sound so easy to get rich in real estate. These folks don't talk about all the hard work involved. Think smart. You have to be willing to work and understand your risk tolerance.
3. Doing it all by yourself. Build the right team of professionals. Let's name some of the contacts that need to be established: a real-estate agent, an appraiser, a home inspector, a closing attorney, a lender, (while also keeping in mind: a plumber, an electrician, a roofer, a painter, a heating and air-conditioning contractor, a flooring installer, a lawn maintenance service, a cleaning service and perhaps a handyman).
4. Paying too much for properties. The purchase price always locks up the margin for profit. Do your comparative analysis homework. Need I say more about this?
5. Over-looking some detail. Be sure to educate yourself before you put your financial security on the line. Read books and articles on everything from buying foreclosures to screening tenants. You should learn as much as you can before your first deal.
6. Not doing due diligence. Much of this is simply studying the nature of the area of the property and the surrounding properties. Find out all that you can about other properties for at least 2 miles radius.
7. Not having another plan "out" of the deal. Always have at least two ways to get out of any deal. If you plan to rehab the house create a sub sequential plan B such as to offer a lease-purchase to a buyer. Plan C might be to rent the property out.
Most people aren't willing to take the risk that real-estate investing involves. Fortunately, these are the same people that will make you money by renting or buying from you. The people who invested in real estate years ago are living a very comfortable lifestyle now.
Just remember: investing in real estate requires a lot of time. You need to deal with a wide array of tenants. You also have to deal with operating and fixed expenses, such as heating bills and renovation costs. Yet, the rewards can be astounding!