Wednesday, May 8, 2013

I want to invest in real estate. Where do I start?

Clearly, there is no cookie cutter answer for investing in real estate.  Because the real estate market is ever changing and there are so many variables, there is no true "one-size-fits-all" approach.  But there are certain parameters you can decide, for your situation, that would be the "best-size-fits-all" approach.  Whether that's only choosing properties that are all ready remodeled or properties only in one particular zip code, or however you choose to determine it, you need to choose the method that works best for your specific situation.
The very first step is to invest in yourself.  Read, learn, talk to informed individuals that are investing or are interested in investing.  Educate yourself and maybe even work alongside someone who is actively investing in real estate.  You can't put a price on experience!
Then it's time to get dirty!  There are several options on how to start, and each one will depend on your current situation.  You'll hear about the "buy and hold method" or the "fix and flip."
I personally think the easiest way to start is with your own home!  Start out with something ugly- I mean UGLY!  And make it into a marketable home.  The biggest benefit to this method is that you get to live in your investment, so you don't have "carrying costs" while you're working on it and trying to sell it.  I mean, you have to live somewhere, so why not live in your investment!!
Another option is multi-family homes!  A duplex, for example, qualifies for FHA or VA lending.  You can finance your duplex, live in one side, and charge rent in the other side.  Do this for a few years and build your capital while someone else pays your mortgage!  Again, you have to live somewhere, so why not live in your investment!
How about other rental property (buy and hold) properties?  If you can finance or front the cash for a rental property- DO IT!  Real estate is a market- meaning people shop for homes, and deals!  If you have the inventory they're shopping for, you're going to make the deal.  
There are a lot of creative methods for beginning your investment lifestyle!  Once you start, you won't want to stop.  Have questions?  Wanna look at properties?  Let's talk!  Give me a call and we can discuss your options!  There are a lot out there!  Jacksonville, NC has a TON of investment opportunities, we just need to take the first step!


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