| bottom-link"> | | | | — and give you an idea of how much |
| Real Estate Investing. Where To Start | | | | they’ll finance. This also tells you how much |
| Making your first real estate purchase, either as your | | | | you need to bring to the table, whether it be yours |
| main residence or as a investment, should be | | | | or someone else’s. There are so many |
| profitable and exciting, however it can bea bit | | | | different financing choices available today, |
| overwhelmingalso. You should follow these steps | | | | you’ll need to decide which option works best |
| when starting out in real estate investing. | | | | for you. Financing plans have different variables |
| 1. Educate yourself. No don’t worry, I | | | | including different rates, initial cash investment, and |
| didn’t mean that you need to go back to | | | | tax implications as well as how much is needed |
| school, however you do need to take issue for what | | | | monthly and where are these funds coming from. |
| you need to know, andlearn it well. You should know | | | | 3. Where do you start to look for your property. |
| and study the market you’re interested in | | | | Finding real estate that you can make a profit with |
| entering. Use the internet, local public records, as well | | | | should not be that difficult but can be tricky. Use the |
| as local area real estate agents to find the sales | | | | internet and local newspaper’s Real |
| prices of comparable properties (comps). Learn about | | | | Estate section. Look for abandoned and For |
| the whole transaction process, eachperson’s | | | | Rent homes. |
| role and responsibility, the legal requirements, and | | | | For Sale By Owner (FSBO’s) online sites are |
| insurance. Each of these components carries fees | | | | also a good method. Drive around the area |
| that vary, These cost must be included for the total | | | | you’re interested in and try to find For |
| purchase. By researching prices you can avoid losing | | | | Sale by Owner properties. |
| money. | | | | 4. Time to negotiate. Once the perfect property has |
| 2. Do you have your financing in place? Get your | | | | been found, you’ll need to negotiate for the |
| financing in order. All to often, this is common | | | | best price. Don’t expect that you’re |
| mistake made by first time investors is to find the | | | | going to steal a property. Sellersare trying to get the |
| property first, then get the financing in place. Before | | | | most money for their property, and you will be trying |
| you go out to find that hidden gem, get | | | | to pay the least amount. Negotiating well involves |
| pre-approved for financing. Decide on a lender by | | | | working together with theseller to find a win-win |
| choosing a bank, mortgage company or online loan | | | | situation, this means what does the seller really need? |
| company. Line up private investors and/or equity | | | | If you can fix a problem the seller needs fixing, then |
| partners to Joint Venture with. | | | | the purchase price of the house May be a secondary |
| When talking with your lenders, private or | | | | issue. |
| conventional, tell them how much you are looking to | | | | Be aware and sensitive to the sellers needs, be |
| do. If conventional funds are being sought, the | | | | assertive, but plan to make concessions. Inflexibility |
| lenders will gather financial information about you | | | | often causes expensive delays and added stress. |
| — your income, credit history, liabilities | | | | Learn to be creative. |