Real Estate Investing - How do I get started?

ErinErin subscriber Posts: 3
edited June 2014 in Business Planning
Hi all,
 
I`m interested in getting some of my equity moving in the form of income property investment.  A couple of things I`ve learned so far, just from talking to people who are doing it:
 
1)  Find a blue collar market/neighborhood where units sell between $60K and 100K, and the rents are high enough to create a positive cashflow.
 
2)  Get a real estate agent in the prospective neighborhood and give them a percentage of ownership in exchange for managing the property (set up as a joint venture between 2 LLCs).
 
Any comments or further advice from the peanut gallery? 
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Comments

  • calvinjrcalvinjr subscriber Posts: 3
    I have been buying and selling properties for  the past 5 or 6 years (yes, I am 22 if you want to know how/why I will tell you but I felt this wasn`t the place) and first thing you should do is figure out your goal.If you are trying to buy real estate to be cool or in, then you will fail. Have a plan for each property and have an exit strategy it is another business and will require work like a business, so please have a plan of action.1. You can work in 60k to 130k, maybe even a little higher it just depends. I have a friend that deals in the 400k range so it all depends on again what your plan is, what type of homes you want to deal with and what type of renters you want to deal with. I have done section 8, isn`t fun but it works for some. I rent homes in the 100-150k range and I rent to college students (backed by their parents) and young professionals. I only deal in new homes because they have a 1 year warranty so I know that atleast for the first year I am covered. I hand select the renters because I just dont want anyone in my homes causing me problems. As I continue to buy homes I will find a firm to manage the properties but I am having a problem finding the company that meets my values and my standards.Those are my comments, just let me know...C.   PS. If you need/want more conversation and want it to be private just email me.  
  • MNMtgGuyMNMtgGuy subscriber Posts: 3
    I would invite you to attend a WEBINAR that I will be sponsoring this Thursday (August 3) that addresses this VERY popular topic. Let me know if you would be interested in being added to our invitation list.
    NO high pressure tactics...nothing more than a chance to learn.
    Thanks!
  • ErinErin subscriber Posts: 3
    Thanks to both of you.  I am definitely interested in investing in real estate as a business.  Definitely not "to be cool!"  I`m a little freaked about getting started, I guess mostly due to lack of knowledge.  MNMtgGuy, I`d be interested to hear more about your Webinar.  What time is it and how long does it last?
  • MNMtgGuyMNMtgGuy subscriber Posts: 3

    Hi Erin,
    Should run about 45 minutes or so. Email: [email protected]</A> if you would like to join us. He will email sign on info.
    Please join Signil Wealth Consulting Group and Terry McCahill on
    Thursday, August 3rd at 11:30am CST for a webinar on understanding real
    estate market cycles and how to use this information to invest strategically throughout the U.S.
    Signil Wealth is real estate market research, consulting and aquisitions company that follows the same economic principles that guide major corporations. By tracking the real time economic conditions of over 900 metropolitan areas your decisions are based on true supply and demand fundamentals. We provide market intelligence, timing and advice so your buying decisions become strategic portfolio investments and not speculative acquisitions.
     
    Tim Conarro
    Signil Wealth Consulting Group
    303-827-3021
    www.signil.com
  • NicoleCNicoleC subscriber Posts: 18
    Dear Erin,
    If you would like to understand real investment then consider reading: "The Millionaire Real Estate Investor" by Gary Keller, Dave Jenks and Jay Papasan.  Of all the real estate books I have read theirs has the most condensed and comprehensive, not to mention, effective information.
    Being a real estate investor can be alot of fun but if you are not researching the right variables and market conditions then you risk losing money on your investment.  In the end, the best consumer is the educated consumer.
     
  • MNMtgGuyMNMtgGuy subscriber Posts: 3
    Erin,
    Just an FYI. Signil now has a "standing" webinar that will be held every Wednesday at 12pm Mountain Time.
    Please join Signil Wealth Consulting Group for our weekly webinar, Wednesdays, Noon MST (2pm EST). Discover how Portfolio Compression can increase your wealth dramatically. Go to our website at www.signil.com</A> for more information.
  • brummiebladebrummieblade subscriber Posts: 0
    Dear Erin
     
    I`m in the process of investing in the buy to let property rental market.
     
    My advice is to talk to as many people as you can who are doing what you want to do, always over estimate your costs and make sure each property you decide in is surveyed thoroughly and be prepared to walk away even though you may have invested some time and money in your research.
     
    Let me know if you want to correspond more as I have some real lfe sample drafts of cash flows which I am currently working on and business plan which you could crib from.
     
    I am spreading my portfolio with some student rentals, some young professional and some holiday short term lettings in differing lcations.
     
    I`m working on breaking even on costs for 2 years, and looker at the longer term game in terms of equity growth over 12 - 15 years as a pension fund with strategies for removing money being in terms of re-mortages when equity has increased and rental covers increased borrowings.
     
    I am looking at interest only mortgages over 15 years with selling some of my potfoio at the end of that period to pay off the mortgages and retaining those that will give me the highest cash income when I retire
    Also get a good accountant, tax adviser, legal adviser and real estate agent and talk to them lots. Be specific with your needs as this will help them. Also any professional help you engage try to get people who also invest in property as they will understand your needs better
    Regards
    John
  • NicoleCNicoleC subscriber Posts: 18
    Erin,
    There are alot of investment opportunities but in all things knowledge is crucial to establishing goals and devising a plan headed for a successful outcome.
    Therefore it might help to surf the US Department of Housing and Urban Development (HUD) site.  It may also help to read up on the housing bubble.   RealtorNicole2006-10-19 14:58:40
  • EdLEdL subscriber Posts: 3
    Erin,
    Like with any investment, you must understand the risk and rewords. The following is a link to an easy to use template, it will show you the potential ROI of any investment given a set of assumptions (than you can change easily).
    -software-investment-calculator.htm EdL2006-11-20 18:4:36
  • YoliYoli subscriber Posts: 0
    I am finding the Real Estate Business to be so enjoyable.  I also have to say that it is giving me a rewarding experience of creating who I am.   It is a risk, and like everything else you have to have a plan.  However, dont assume that it is all in a one two threee step and you are there it takes time and effort.  I am establishing my self at the present time and with in the year I am taken on other partners to help invest.
  • NicoleCNicoleC subscriber Posts: 18
    Are any of  you using your Roth IRA to hold your real estate investments?  If so, how is it working for you?RealtorNicole2006-10-22 14:2:8
  • YoliYoli subscriber Posts: 0
    Not at the present time.  However I have a friend who work for METLIFE and suggest that I do that asap.  Currently No.  However I think iit is a wonderful idea.
  • YoliYoli subscriber Posts: 0
    Nicole are you an Realtor?    And by being a Realtor to find more property to invest in that are either distress or foreclosed.
  • NicoleCNicoleC subscriber Posts: 18
    Dear Yoli,
    Yes, I am a Realtor in Michigan.  I work with more buyers then I list.  My primary focus is on residential and income properties: single family homes; 1-4 units; and 4+ units. (Basically houses, condominums, townhomes, duplexs, and apartment buildings.) 
    In Michigan, regardless of which brokerage has listed the property, foreclosed and distressed properties are typically found within a multiple listing service or on a HUD home auction list.   
  • NicoleCNicoleC subscriber Posts: 18
    Here is link to the Federal Deposit Insurance Corporation.  On their website they have published consumer information and they have a link to a mortgage shopping worksheet:  http://www.fdic.gov/consumers/looking/index.html</A>
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