One of the most common questions that seasoned real estate investor hear is, “How do I get into the real estate business?” And there are a lot of people out there who are willing to tell you that very thing if you order their book or sign up for a class or buy their series of videos. But that is, for the most part, all a scam to get your money and to make them rich without having to take any risk in the real estate investing business. The following three steps will provide you with a clear path to a career in real estate.
- The first step is to ask yourself if the real estate business is really what you want to do. It seems like a simple question, but an honest answer is critical. If you like real estate then you have a far better chance for success than if it holds no real appeal to you. You will be far more driven and dedicated to a career that you enjoy and are passionate about.
- Making your first deal is as simple as finding a property in a middle-income market that is cosmetically distressed. This means that the house needs paint, carpet and some simple fixes that you can do yourself. In most cases, you can increase the value of a property by $20,000 to $30,000 just by doing these simple repairs, renovations and cleaning it up. And if you are really ambitious, you can do the same thing with a multiplex and make an even bigger return on your investment.
- Finally, you need to run the numbers on the property to know what it would rent for before you make the purchase. The trick is to buy the property at a price that will allow you to rent it out for a profit before you make any additional investment in renovations and repairs. Then you have the option to rent it as is to begin earning a profit and then you can roll that money back into the property later or use it to make your next purchase.
Getting into real estate investing is about learning the business and learning to make only smart investments that you know will be profitable. Low risk, in the beginning, is the best way to grow your investing into a full-time career that allows you to take more risk and earn greater rewards.