Investing in Real Estate 101

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Real estate investment for dummies

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Investing in Real Estate 101

  1. 1. http://Articles.SuccessEsource.com/wealth<br />Investing in Real Estate 101<br />1<br />
  2. 2. Real Estate Investment Tips for Beginners<br />Investing in real estate is very lucrative. Investors spend years honing their skills and market knowledge for them to find valuable properties in the market.<br /> Too many investors start with properties that are high risk but that’s not going to ease up real estate investment for beginners. <br />Starting small will help a new investor learn to minimize risks as much as possible. <br />2<br />
  3. 3. Real Estate Investment Tips for Beginners<br />Real estate investment is a long term endeavor. Many new investors usually go the easy way. Wise investors focus on income-producing properties.<br /> Look for a realtor who does not only work with investors but makes good investments as well.<br />A successful real estate investor has good business plans. <br />3<br />
  4. 4. Real Estate Investment Tips for Beginners<br />4<br />Determine the properties you are interested in, think of possible concerns and decide your business goals.<br />Once you have your business plan and you see a property that looks like a good deal, then you are ready to start earning money.<br /> Weigh the consequences. If you find problems that you think you can't extenuate in your plan, don’t push through with it. Find something that is workable.<br />
  5. 5. Modes of Real Estate Investment Financing<br />5<br />Traditional<br />The traditional route taken in real estate investment financing is through banks, credit unions and other home mortgage companies. <br />In the conventional way of real estate investment financing, most lending scenarios require at least a 10% down payment, but still there are those that will approve the investor for less. <br />
  6. 6. Modes of Real Estate Investment Financing<br />6<br />Creative financing methods<br />Creative financing refers to any method of financing besides the traditional one. <br />These methods allow investors to buy properties using the OPM or “other people’s money”. <br />In this way, investors use as little of their own money as possible, so it will build up further.<br />
  7. 7. Modes of Real Estate Investment Financing<br />7<br />Creative financing methods(c0nt.)<br />Seller carry back.<br />This mode of real estate investment financing is done when the seller agrees to carry the note for your purchase. <br />This will happen when you find a seller who does not mind receiving monthly payments for a property he is selling.<br /> <br />
  8. 8. Modes of Real Estate Investment Financing<br />8<br />Creative financing methods (c0nt.)<br />Subject-to<br />This term comes from the phrase “subject to existing financing”. <br />This means that you buy the property on the condition that the existing financing stay in place.<br />
  9. 9. Modes of Real Estate Investment Financing<br />9<br />Creative financing methods (c0nt.)<br />Seller second<br />In this real estate investment financing, the seller gives a second mortgage. <br />Typically, the second will be just large enough to cover most, or all, of a required down payment. <br />
  10. 10. Modes of Real Estate Investment Financing<br />10<br />Creative financing methods (c0nt.)<br />Lease option<br />This allows you to get into a house or property for little to no money down, and it gives you the right to eventually buy the property down.<br />
  11. 11. 11<br />http://Articles.SuccessEsource.com/wealth<br />

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