How To Get Started Investing In Real Estate

If you want to make money investing in real estate, you have to begin with a plan. Here are some ways to get started investing in real estate. Choose a plan that works for you.

If you don't currently own your own home, that's the best place to start. Many people never buy a home because they think they have to have perfect credit or a lot of money down. Talk to a mortgage loan officer. You may be surprised that you can buy a home with little money down.

Homeowners Are Real Estate Investors

Any home owner in reality becomes a real estate investor. Whether home owners want to stay in their home for life or just a few years, their home should make them money. Many families only own one home at a time, but they keep moving up. Some of these families have made money from their homes by taking out the equity to pay bills. Other families bought more expensive homes, which went up in value more than the first home. For instance, a family bought a home for $105,000, sold the home for $230,000 and then bought a home for $300,000. The more expensive home went up in value the next year more than the first home. You can build your real estate wealth just by owning one home.

However, if you split your mortgage payments with other people, you don't have to pay for all this equity on your own. Your tenants will help you make the payments and over time can actually buy the property for you!

Examine your financial situation along with your long term goals.

How to Begin Real Estate Investing

Many investors start with a home to live in and then save money for a down payment for their first investment property. Here are some ways to skip the savings years, which most people never accomplish:

1. Refinance. If your home has gone up in value, refinance your home and use the equity for a down payment on an investment house. You must have sufficient monthly income to pay any negative between the rental income and the new mortgage payment. Some home owners have been able to purchase more than one investment house from one refinance transaction.

2. Move. Another way beginning real estate investors get their first investment is to buy a new home and rent out their first home. If you have great credit, you don't need to put a down payment into a new home to live in.

3. Sell and Move. You can sell your home and buy two houses. Use your equity to put more down on the investment house than your personal home.

4. Buy a vacation or second home. Our cabin tripled in value in three years. We refinanced the cabin to buy more houses and also kept funds to pay for the mortgage, twice. The cabin pays us to enjoy it!

You can make money investing in real estate. Make a plan of action and get started real estate investing.

Jeanette Fisher teaches how to find, finance, fix and sell. Free ebooks "Credit Tips" http://worryfreecredit.com "Flipping Houses" at http://doghousetodollhousefordollars.com

A Beginner's Guide To Real Estate Investing Strategies

If you're thinking about investing in real estate to make money, you need to first determine your financial goals. Do you need to make money quickly, invest for your children's college fund, or build wealth for your retirement? Once you determine your financial goals, you need to decide which type of investing strategy works for you.

Make Money in Real Estate - Fast Cash Strategy

If you're low on cash, get started by finding a bargain house and selling the contract to another real estate investor. Join a real estate investing club to find investors willing to pay you for finding good deals.

Make Money in Real Estate - Income Property Strategy

If you want to increase your monthly income, look for income property that returns a positive net income from month to month. Start with single family house. Look for a bargain below market value. Fix up the house to generate top rental income. Find houses that will rent for more than your mortgage payment. You may need to go out from your home area to a location that supports this type of return on your money. You can't pay $300,000 for a home with a mortgage of $1,500 that only rents for $1,000. You might start with a home for around $300,000 that rents for $1,750. You will need good credit to get a loan with good interest rates. In a few years, your rental income should go up. Many real estate investors enjoy thousands of dollars each month generated by income property.

However, some investors don't like dealing with tenants and prefer to make money in other real estate ventures.

Make Money in Real Estate - Investment Property Strategy

If you want to make money focusing on profits, investment property offers a different strategy. Instead of worrying about rental income, look for property that you can transform and sell or property that will appreciate significantly over time. Besides fixing a house up, you can transform a property by changing it. For instance, some investors buy apartment buildings and turn them into condominiums. Many investors speculate in land and make money by holding the land until new development in the area increases the value.

You can get started by flipping properties, move onto income properties, and then make larger profits with investment properties. You might end up using a combination of all three strategies to make money investing in real estate.

Jeanette Fisher teaches how to find, finance, fix and sell. Free ebooks "Credit Tips" http://worryfreecredit.com "Flipping Houses" at http://doghousetodollhousefordollars.com

Take Away Power For Real Estate Investing

As a real estate entrepreneur, you must decide to learn the secret power associated with the takeaway. Maybe, you've already used it before. You may have used it and didn't even know it. Regardless, this method is a powerful trigger that will work wonders when negotiating with either a buyer or seller. This technique will definitely light a fire under your prospect's rear to get them moving regardless if you're on the buying or the selling side.

Here's what happens: you basically take away what ever it is you were offering. Maybe you take away a certain price on a property to hold out for a higher price, maybe you take away the ability to buy the sellers house or maybe you take away the deal all together. For example, let's suppose that you're selling a property for $100K. You have an offer from a buyer for $80K. You then counter the offer at $90K. At this point, you're pretty close to reaching an agreement with the deal, as you are only $10K apart. Well, the buyer offers you $83K as an attempt to get you lower.

At that point, you go back to the buyer and apologize that you made a mistake and that you feel awful about it. You tell them that there is no way that you can sell it for the $90K, that the lowest you are able to go is $93K. Now, in most cases, the buyer will not even talk about getting it below the $90K. They'll want you to come back to the $90K.

This is an example of the classic takeaway. This method is almost magical and really takes away the pressure from you and puts you back into the driver's seat of the negotiations.

Just recently I used this very technique on a note buyer that wanted me to jump through all these hoops to sell the notes to him. Here's what happened: We had a 2nd mortgage that a guy owed me around $23K. The borrower was current on his payments and had an excellent pay history with us. The note buyer had offered me $19K for this note and I accepted. Well, after a couple of weeks of goofing around, I still didn't have the money or a note purchase agreement. So, it seemed that this guy might be a tire kicker simply wasting my time, so I get on the phone with him using the takeaway. I simply told the note buyer that I had given him more information on this note than I had given any one else with the notes that I had sold to in the past and that I wasn't going to continue to waste my time to hold his hand. Then, I told him that maybe this deal wasn't for him and that I had others that wanted to look at the note. I also told him that I didn't need his money and that it really didn't matter to me if he bought it or not. I then said, "however, if you are serious about this, then I need the note sale agreement on my desk within 30 minutes and the money wired to my account within 48 hours." The outcome of this was that he wired the money to me in less than 48 hours of this conversation.

The takeaway method works like gangbusters. But, you may ask why? Well, it's proven that we all are motivated by scarcity. In other words, if there is a product or service that is freely available, then the desire for that product or service is not that great. However, if there is a limit or some deadline to that product or service, then it will increase your desire to have the product or service. That's why you see so many deadlines with promotions. And this works the same way with your real estate transactions. See, once you're in negotiations, people already imagine having the money from the sale of their property or they've already imagined having that investment property added to their portfolio as they figure what their monthly cash flow will be. So once, you take what you're offering, the desire for the item increases. Whether it's the desire for you to buy the seller's home or whether you're selling your latest deal.

The point is this: the takeaway works. So, next time, your Real Estate negotiations come to a stand still or they're not progressing at the rate you'd like, then try the takeaway. If you don't see the value in using this one technique, then you need more help than I'll ever be able to offer.

Derek Pierce, a 5 year, full time Real Estate Investor, shows you the exact strategies to his success in his Free Book: "How I Went From Corporate Guinea Pig To Real Estate Success". Get your copy by going to http://www.thereisecrets.com

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