For the beginning real estate investor, he must first determine what his financial goals are. Does he need to make money in a hurry, invest for his kids education or just supplement his retirement? Once he has determined his goals, he has to decide which investing method works best for him.
If his cash flow is low, he could find a hose about 60-65 percent below market, that needs a little work and get it under contract. Next, he needs to find another investor to sell the contract to. To find real estate investors in his area he join a investing group, check the newspaper, or do an internet search. There are other ways also, if he uses his imagination. Remember when getting an house under contract to leave some room for the next guy to make money.
Suppose his goal is to have additional monthly income. He needs to find a house he can purchase that leaves him a positive cash flow at the end of the month. Positive cash flow meaning, rent minus mortgage, insurance, upkeep and other miscellaneous expenses. Maybe he wants to build toward retirement or supplement his 401k. His pool of houses to choose from just got a little bit bigger. Now he doesn’t have to find a house with a positive cash flow, but one that breaks even at the end of the month. His property is paying the mortgage and all the other expenses, over time he has a mortgage free house, plus tons of equity.
The beginning real estate investor has some decisions to make. I mentioned just a couple here. His future plans and personal situation are only known to him. Whatever his future plans are and whatever his position is, by all means he needs to jump into real estate investing, as it is one of the best places he could put his money.
Real estate is generally a safe investment, even in this time of foreclosures and a down market. If he studies the area he lives in and watches prices, he can still buy real estate at a good price and that is the key to making money in real state, buy low and sell high is not just a cliche, it is the foundation on which he should build his business. If not he will surely fail.
For now, that’s enough ideas and thoughts for the newbie to consider and research. Whether real estate investing is for him or not, only he knows. Good luck and God bless.