Jason A. Welch - Investing in Real Estate for Beginners

INVESTING IN REAL ESTATE FOR BEGINNERS

LEARN HOW TO INVEST IN PROFITABLE RENTAL PROPERTY AND MAXIMIZE YOUR RETURN FOR NEW REAL ESTATE INVESTORS

Introduction

T he best real estate investors are those who keep their ear to the ground when it comes to new avenues for lead generation and changing buyer or renter trends which means they cultivate the habit of lifelong learning as early as possible. Failing to do so is like leaving money on the table. Getting ready to pick out your first investment property is akin to getting ready to start out on a great adventure. No great adventure that ends profitably is over quickly, however, which means that before you get started down the path of real estate investment you need to be ready to commit to the long haul. Successfully investing in real estate is a marathon, not a sprint, and slow and steady wins the race.

Doing the research, setting up budget goals, and learning about the areas where you would like to invest are keys to achieving success. Networking with real estate professionals and studying the trends in a neighborhood will make for a strong, profitable investment.

Investing in profitable real estate rental properties can, at first, seem daunting. But with the information provided in this e-book, you should be able to begin investing in real estate rental properties better equipped than when you first began to read it.

This book will answer all your questions on real estate investing.

Chapter 1: Real Estate Investing for Beginners

I nvesting in real estate is another method of putting your money to work today and allowing it to grow and multiply as time goes. For the investment to be worthwhile, though, the returns or the profit you get from your investment must be able to cover the taxes imposed on the property, the maintenance costs, insurance, the risks taken, and the costs of other utilities.

The concept of investing in real estate is quite simple. First, it requires a basic understanding of the nature of the investment economics involved and the risks you will bear when you invest. To make a profit, you must invest in properties, collect rent, and manage the money you get so that you can invest it in other businesses as well. Note that simple does not mean that the real estate business is easy. It is marred with risksranging from minor to large disasters that could make you lose your property or even worse.

Although there are risks involved, real estate investment remains one of the most popular and most lucrative investment ventures because of its straightforward approach. The business comprises a fair exchange between a property owner and the property user. As long as the user pays rent and as long as the owner ensures that his property remains safe and with a proper connection (electricity and water, although the renter pays the bills), the deal is sealed. However, there may be added complexities depending on the type of real estate investments such as commercial, industrial, residential, and the kind that trades on stock exchanges called REITs (Real Estate Investment Trusts).

How to go About Real Estate

T he concept of real estate investing has been around for generations. Some people think that it is just about buying and selling property. That is technically an important aspect of the field, but unlike other investments, you have some sense of control over what you hold. The variables that can directly impact the real estate market can be significant. If the real estate market is up, some strategies work fine and then in down markets, other techniques become more profitable. Regardless of the market, you can make money investing in real estate. Becoming a real estate investor require few items: laptop, printer and phone. This is all the equipment you need to begin. You can work from home, what many call laptop lifestyles. It's a very low-budget investment, compared to starting any other physical business which usually requires other kinds of startup investments, like offices, staff, companies, etc. And launching a real estate investing business is far simpler than starting the majority of other businesses: it does not require venture capital, a board of directors or even a detailed business plan.

Investing in real estate does not have to be a full-time activity. You can invest on the side, in your free time, but you may enjoy it so much that you may want to do it full time. You do not have to quit your main job to try a real estate investment, but you can work with the free time you have available.

Anyway, the most important thing is that investing in real estate can make you very rich and provide the lifestyle you dream. But real estate investing, like any business, requires very specific knowledge. This knowledge is not taught in school and most people don't know how to move in the real estate market.

When my father died, I inherited his properties, but I had no knowledge or experience to manage them. So, I made mistakes from which I learned a lot: nothing is more formative than errors!!

First, you need to learn the basic concepts and then experience it.

Investing in real estate requires patience and perseverance; don't think you start today and make a profit tomorrow. Real estate is a business which needs time to start to be profitable. Some people simply do not have the patience to see their efforts turn into passive incomes or financial returns.

There are many aspects of real estate investing that need to be explored. You must understand everything that goes into real estate before you try to take advantage of the field.

Now that we have a decent grasp of how real estate investments can make you money, here is a step-by-step guide to beginning to invest in real estate. For the young reader, probably the best way to begin investing in real estate is by buying a rental property.

Simply put, a rental property is an investment designed to attract tenants, often called renters, to live in your property.

These tenants pay you to stay in your property each month, resulting in a passive income. For young investors and those still in college, the easiest way to do this is by buying a condominium or college-like apartment suite. Condos and dorm-style apartments by and large are the properties requiring the least amount of capital as a down payment. Down payments, also called deposits, are payments used to purchase large assets, usually cars and homes. Here is the beauty of a down payment: you only need to physically possess a fraction of the price of the property for you to put a down payment on a home. The rest of the property can be purchased over time, usually in monthly installments with interest.