The Rookies Guide to Real Estate Investing

by : Kris Koonar

After a lot of thinking when you decide on some real estate investment and you want to earn money out of it, you need to also think about how to go about it! Stop thinking and start acting! Remember, you will always remain a rookie until you close your first real estate deal.

The best way to learn is from an expert. So hire the services of a good and recommended real estate broker. It might be a bit costly to pay him but think of it as the learning and earning experience together in one package. Observe him and learn from him about the dos and don'ts while dealing in real estate. His experience and contacts can build a strong base for your future deals. Check out how he identifies potential good deals. You can use that knowledge in future.

Once you have identified the house or commercial property, which you intend to buy, conduct some research about that neighborhood. Check out the current rates and the past rates in that neighborhood. Enquire about other properties in that neighborhood to get a feel of the property market. Since the first deal is always the trickiest- mentally, do not burn your fingers by going in for the biggest. Instead, buy up a small apartment or a small home. If the appreciation is good then flip it [i.e. sell it] and book your profits or give it out on rent so that your installments get paid through them.

You can always sell if off once it appreciates to your liking. Also hire an efficient attorney to check out all the paperwork of your deals. Do not put your hand into badly maintained and old properties. Leave those properties alone until you have good contacts with contractors and architects, and have gained some experience in dealing in properties. Your new deals should be in well-maintained properties where you only have to buy and sell.

Also, while negotiating with buyers and sellers, try getting into their minds. Imagine yourself in their place and understand their needs and their weak points. Understand that price negotiation is part of business life. Do not take it personally but keep a cheerful and calm posture while dealing with buyers and sellers. You can also create your own Website. Make it informative and precise. You can list your property requirements and availabilities on your site. Also keep in touch with the mailmen, and packers and movers in your neighborhood. They are a rich source of information regarding people shifting out. Follow up on all leads aggressively. You never know when a small tip could turn out to be a big hit.

In future you can also explore buying from auctions and going in for foreclosure properties. These will fetch you better profit margins but the paperwork involved is more challenging and timing is even more important in these deals. In foreclosure properties watch out for any attached liens on the property and stay aware of the local state laws, which could vary from state to state.

So, patience, persistence and performance can easily turn you from a rookie to a master in real estate investing. Do not stand on the sidelines. Use these above tips and watch your investments rise to new heights.