Real estate investment for dummies

1. http://Articles.SuccessEsource.com/wealth Investing in Real Estate 101 1

2. Real Estate Investment Tips for Beginners 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. Too many investors start with properties that are high risk but that’s not going to ease up real estate investment for beginners. Starting small will help a new investor learn to minimize risks as much as possible. 2

3. Real Estate Investment Tips for Beginners Real estate investment is a long term endeavor. Many new investors usually go the easy way. Wise investors focus on income-producing properties. Look for a realtor who does not only work with investors but makes good investments as well. A successful real estate investor has good business plans. 3

4. Real Estate Investment Tips for Beginners 4 Determine the properties you are interested in, think of possible concerns and decide your business goals. 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. 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.

5. Modes of Real Estate Investment Financing 5 Traditional The traditional route taken in real estate investment financing is through banks, credit unions and other home mortgage companies. 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.

6. Modes of Real Estate Investment Financing 6 Creative financing methods Creative financing refers to any method of financing besides the traditional one. These methods allow investors to buy properties using the OPM or “other people’s money”. In this way, investors use as little of their own money as possible, so it will build up further.

7. Modes of Real Estate Investment Financing 7 Creative financing methods(c0nt.) Seller carry back. This mode of real estate investment financing is done when the seller agrees to carry the note for your purchase. This will happen when you find a seller who does not mind receiving monthly payments for a property he is selling.

8. Modes of Real Estate Investment Financing 8 Creative financing methods (c0nt.) Subject-to This term comes from the phrase “subject to existing financing”. This means that you buy the property on the condition that the existing financing stay in place.

9. Modes of Real Estate Investment Financing 9 Creative financing methods (c0nt.) Seller second In this real estate investment financing, the seller gives a second mortgage. Typically, the second will be just large enough to cover most, or all, of a required down payment.

10. Modes of Real Estate Investment Financing 10 Creative financing methods (c0nt.) Lease option 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.

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