Real Estate investing can be a very interesting and profitable business. As in most business ventures, there are many basic facts to consider and master. Frankly, it’s not “Rocket Science” but you do need to understand the basics. I’ve written this article based on my actual experience as a successful real estate investor.
Tip 1. Arranging for Finances: Steps to Start Buying Houses: When you start buying houses, there are several directions to go in arranging for the money that you’ll need to make the purchase, pay for the repairs, advertise the house when it’s ready to sell, and hold the house until it sells.
Obviously, having access to adequate funding is of great importance. It might seem to possibly be a daunting task until you actually understand that even in a tough economic climate, there is money available. You just need to be a little creative in discovering the sources.
Sources of finances include: Personal funds, Private Investor’s funds, Bank funds, Hard Money Lender funds, and Creative Financing funds.Find more info on housebuyers Orlando.
Personal funds are liquid funds you personally have or funds you can raise by pledging your personal collateral equity. At first, these personal funds or personal equity are not normally used when you start buying houses.
Private Investor funds: This can be the most important source of funding your purchases. You may contact potential private investors by direct mail, a website, face-to-face, telemarketing, etc.
The message to Private Investors is something like, “Would you be interested in making 10% to 15% on your investments? The investment is secured by real estate and you never invest over 70% of the market value of each investment.”
I personally was a real estate investor for 9 years and have now retired. A significant part of my retirement income now comes from being a private investor. This passive income allows us to maintain a very comfortable retired lifestyle. I’m now in my 70’s.
Tip 2. Learning to Determine Present Home Values: Steps to Start Buying Houses: This is not really “rocket science”. The market value is determined by what other similar homes in the nearby area have recently sold for. All realtors have access to that information from their MLS (Multiple Listing Service). Having or knowing or working with a friendly realtor can make it very easy to get this information.
Tip 3. Getting a Handle on Estimating Repair Costs and Time Needed to Complete Steps to Start Buying Houses: Repair estimating is an extremely important needed skill as part of your real estate investor.