So You Want To Be a Real Estate Investor?

Author: Todd Christiansen | Category: Eviction

You have been watching your neighbors, friends, and family capitalizing on all the foreclosures and fantastic deals in the real estate market right now.  Maybe you have been thinking about buying a fixer upper to flip or a duplex to rent for some time.  Have you bought all the infomercial programs and read all the books about real estate investing?

When you are ready to get started, it can feel it is your first day of high school as a freshman.  You see all the older kids walking around, knowing where they are supposed to go, and you are just trying to not make a fool of yourself.  Well, real estate investing is just like starting anything else such as a new hobby, job, school, or church.  You just have to jump in and get started.  Just as important, though, is to find people you can trust to give you solid competent advice and help you navigate this new territory.

Here are some quick tips on how to get started as a real estate investor:

  1. If you haven’t already, read everything you can get your hands about all the different types of real estate investing.  Be sure, though to read books that were written in the last 5 years.  While Think and Grow Rich by Napoleon Hill may be a classic investing book, it was also written over 20 years ago!  Also keep in mind that some of the techniques that are recommended in the books may not work or even be legal in your area.
  2. Decide on what part of the real estate business you would like to work in such as:  rentals, flipping, commercial, multi-family.  Use the knowledge that you learned from the books you read to help you decide.  If you need more information, join an investors club and talk to many different investors to see what interest you and what you feel comfortable with in regards to risk.
  3. Buying investment property can be tricky without the correct financing.  Find a mortgage banker that specializes in real estate investing.  Make sure you agree with his risk tolerance and feel comfortable with his recommendations.  This will be a long term relationship so make sure you like and trust him/her.  This person should preferably own investment properties of the same type that you are interested in acquiring.  This will make their advice come from practical experience and you will be able to lean on them for landlord advice.
  4. When you are meeting with both the mortgage banker as well as the investors club, ask who they would recommend for a real estate agent.  Just like the mortgage banker, this person will be one of your closest advisers and they should work in and own the type of investment properties you are going after.  This person should understand the market and have your best interests in mind.
  5. Once you have these two key advisers in place, get out and start looking at properties and making offers!  Many investors spend their entire time analyzing deals and never get in the game.

Starting off correctly will insure that you are on solid ground when you finally decide to purchase your first investment property.  This will help you minimize filing an eviction notice.

One Response to “So You Want To Be a Real Estate Investor?”

  1. Thanks so much for creating this site! It has been refreshing to read your posts and realize there are others who are risky (or crazy) enough to be landlords. My husband and I took the big plunge into rental properties about a year ago. So far we only have two modest sized homes. One with amazing renters and the other with less than nice renters. Just had to remove most of his personal property this evening- had the cops over to disarm and dismantle a gun on the premises and confiscate drug paraphanelia. Luckily it is a nice home in a nice neighborhood and we have new renters moving in soon. We had done all the credit and background checks on this not so nice renter and they came back fine. After having the 6th or 7th call about the loud orgy parties that were taking place there- the police were kind enough to offer their services the next time we looked for a renter. Small town friendliness- now if only they would have sited him with a neighborhood disturbance we could have started the eviction process a few months ago and saved the neighbors a lot of headaches. Lets just see if he wants his brand new $4000 furniture set back. Not sure I want it after what was done on it.