Real estate investing is the act of buying and selling property for a profit. This can include commercial, residential and land, but it can also include things like rentals and flipping houses.
This is a business, and you need to develop a plan on how you want to run it. Determine if you want to invest on properties that can be sold as commercial, or if you want to go into the residential area. Finding a home on the edge of a business park will not be a string investment if you focus on residential properties, and knowing how you want to make your money can save you from costly mistakes.
The actual property itself makes the difference between success and failure. Find properties knowing what you want to have, how much repairs are acceptable and even the location. The more you can pinpoint the things you want to have the more successful you will be. By knowing these before you look, you can also save yourself valuable time which can be used to find your next purchase.
There are many ways to buy these home and some of them include distressed properties, ones in foreclosure and from auctions. You need to know what you can and cannot handle. If you have problems dealing with emotions, then buying a distressed property may not be the way you need to go.
You also need to really determine the total cost for the house you are willing to pay. This does not include just purchasing the house, but legal and agent fees and repairs and other fees that may be incurred. By determining this, you can know exactly how much you have to make an offer and how much room you have for negations.
Only make an offer on a house that is slightly lower than the asking price. You want to make sure you are not going too low, since the agent can think poorly of you and have it reflect back on you in the future. Making a solid offer the first time can help you be in a better position to negotiate and get a fair price you and the agent are happy with. Keep in mind the amount of money you have for this, and work within the constraints of it for everything, since this can help you make a profit, not just break even.
When you get the property, then you need to decide how you will make money off of it. You can choose to have it as a rental property, and let the renters take care of the mortgage, repair it and sell it again or even live in it if you choose to. Always make sure you are not spending more money then you have, so you can keep a cash flow to make sure all the properties are in good condition at all times.
Real estate investing covers a lot of aspects, but you need to have the property first and learning how to acquire it is the biggest thing to making money. Spend some time reading websites like Javad Marandi and magazines designed for the investor so you can learn your business thoroughly. A solid business plan, a little luck and a lot of work can help make you successful.
