Robert Waller - How to Invest In Real Estate: The perfect beginner’s guide to creating wealth and passive income without making mistakes

How to Invest In Real Estate

The perfect beginner's guide to creating wealth and passive income without making mistakes

Robert Waller

Table of Contents

Introduction

Congratulations on downloading How to Invest in Real Estate: The Perfect Beginner's Guide to Create Wealth and Passive Income Without Making Mistakes , and thank you for doing so.

Investing in real estate, especially for a beginner, can be a bit overwhelming. There are many questions that a beginner needs to ask about what their goals are in investing, and they have questions asked to real estate professionals brokers and agents, lenders, and other investors that need to be answered. Investing money into a property is a business. For it to be successful and lucrative, there is a need to have knowledge of what the upside of real estate investing can be as well as the downside.

Knowledge about the types of property that derive the most positive cash flow, the area where the property is located, the job market in the area, whether businesses are moving in or out, rental pricing, and whether you need to invest to rent or to re-sell a property are provided in this e-book.

When you start to read this book, you may be a beginner, but by the last chapter, you will be equipped with what you need to know to start investing in real estate. You will have searched for the right real estate professional to partner with, so read as much as you can to increase your knowledge to make your first investment.

here are plenty of books on this subject on the market, so thanks again for choosing this one! Every effort was made to ensure it is full of as much useful information as possible. Please enjoy!

Chapter 1: Property Investing Overview of Real Estate Investing

If youre thinking about investing in real estate and you are a beginner in this endeavor, you may be feeling a bit overwhelmed. Where do you begin? Is real estate a good option to invest in? How will you know what a good real estate deal is? This chapter will review the background of the real estate industry and how it has evolved from its implosion crisis over ten years ago to the present day profits it can offer.

Real Estate Investing in the Past

In the last ten plus years, the real estate industry has recovered from a major crash. In 2007 through 2009, creating a domino effect across the nation, properties lost their value. The bubble that the real estate was functioning in a burst, and many properties that were once valued assets for many Americans fell into foreclosure. Homeowners could not pay their mortgage and found that the value of their homes was under water, worth far less than what they were paying out in mortgage payments.

If you defaulted on the mortgage payment for your home, the bank or mortgage company foreclosed the property, making the home bank or mortgage-owned that was an ever-growing list of properties that ended up being sold for less than the amount owed to the lenders.

Homeowners lost their homes, and for many, this was an incredibly bad state of affairs. Yet, this was a perfect opportunity, and that opened the door to real estate investors who began to purchase the foreclosed properties from the banks and mortgage companies for less than their actual value. So, investors were able to get really good deals for less money they would have had to pay before the implosion of the real estate industry. Another advantage that investors were able to gain was to turn these properties into rental properties. This happened because there were many people who formerly owned homes that now had to rent someplace to live and most preferably rented houses instead of apartments.

Eventually, there was a turnaround in the real estate industry. There was a period of healing, and during this time, investment property that was, at one time, in abundance during the crisis, were no longer as many as there had been. Quite a number of these foreclosed properties had been purchased, and there was a much narrower availability.

Todays Real Estate Market

Over the last decade or so, the real estate industry has grown back into a profitable industry. The economy has grown stronger, and property investing has introduced many more investors into the marketplace. Investing in real estate, particularly in single-family homes, has become very popular. Many of the better properties do not stay on the market for long. Forbes Magazine stated that, as of January 2018, 37% of all homes in the United States were purchased by investors. (Seeking Alpha, 2017)

To say that real estate investing is a hot market is an understatement. Not only is the investment market intensely hot, but it is also extremely competitive. There are a few reasons that real estate investment is competitive.

One of the reasons that the real estate investment market is so competitive is because there are more and more people with discretionary income who look to invest in real estate and side-step investing in the stock market. The stability swing in investing in stocks, bonds, and futures is volatile, and there has been a movement to shy away from investing in the stock market or, if not totally turned off to investing in the stock market, they divert some of their finances into real estate.

The second reason is that there is so much competition in real estate investing coming from seasoned investors. They have been investing for years, know their way around real estate investing, and are continually investing as this is their business, and many of them are able to readily purchase properties with cash. That being said, the real estate market is very popular as an investment option.

Why Invest in Real Estate?

Should you be investing in real estate? Whats in it for you? Three words define why investing in real estate is a good option continuous, positive income. Investing in anything is always a risk, but investing in real estate holds as a good option.

The main reason real estate is a respectable financial option for investment is the repetitive passive income that comes as an owner. Realize, however, that the amount of passive income you will gain will depend on how much you invest, how the property is managed, and that all expenditures that involve maintenance, and if the property is a rental one, there are tenant vacancies that are factored in before the initial investment is made. In other words, the key is careful planning.

Real estate is the industry that keeps on giving, and that is another reason that real estate is a good investment. Why does it keep on giving? That, simply put, is because people will always need a place to live. Whether you choose to invest in a single-family house, a townhome, condo, fourplex, or apartment building, there will always be people who want to rent. A well-managed property in a nice neighborhood environment is what people who rent are willing to live in and rent.

What does this all mean? You will not only have an investment property that you want to be profitable, but you also need to know the area that you will be investing in a property in order to have continual rental tenants so that your investment can be a long-term investment if the location and condition of the property are desirable.

In 2017, rental rates were increasing at a rapid rate. Major cities such as New York, Los Angeles, Boston, Seattle, San Francisco, and Washington D.C. have had rental rate increases that were, for some residents, cost-prohibitive.

However, theres are other cities that have surprised even the most experienced investor. The Mid-West and California make up cities that have seen the rental rate increases. Detroit, New Orleans, Long Beach, Philadelphia, and Sacramento round out the top five cities that saw an average increase of 24% from 2014 to 2017. For some, purchasing a property is out of reach, and they have no other option but to rent.