If you are thinking about getting into real estate investing read these tips below to help you along the process. Even though the market crash of 2008-2009 has seen a massive amount of fortunes lost in real estate, this industry is still good for making money for savvy investors that are in it for the long haul. What gets people in trouble are those that get into real estate investing to make a quick buck.
Like other investing options you need to know that investing is a long term proposition not a get rich quick scheme. If you are looking to make money quickly, unless you are really skilled and know what you are doing, then real estate investing may not be for you. But if you are getting into real estate investing as a long term play then you have many options available to you and you can set up long term gains. Below we will look at a few tips you need to keep in mind while going through the real estate investing process.
- Understand your credit:Â Your credit history is extremely important when you talking about investing in real estate. Unless you have money to invest on your own, you will need to get bank loans and your ability to pay the loan back will be paramount to getting the loan approved. So know your credit history and before talking to a banker get all of the negative aspects of your history resolved.
- Develop a good relationship with a banker:Â Once you have a handle on your credit history you need to develop a relationship with a local banker. If you plan to be doing this long term (read above if you are not), then developing a good working relationship is important because you will most likely use this person over and over again. It is also a good idea to develop relationships with several bankers so if one does not have the trust in your project at the time you have other options to turn to.
- Develop a good relationship with a real estate agent:Â Just like a banker the real estate agent should be a relationship you have for a long time. A good agent will get to know your likes and dislikes and when they are out doing their job they might spot properties that interest you. often times agents have access to properties before the general public does, so having this insider information can help you in the long term score properties others didn’t know would be on the market.
- Get a mentor: You need to get a good mentor that has been in the real estate investing industry for a long time. You need a person that has gone through the down turns in the economy so you know they have weathered the storms in our economy. This person should have a portfolio of different types of properties in all different sizes, so they can give you advice from their own experience. This person can help you get through the rough times you will inevitably face in this worldÂ of real estate investing.
- Have a plan:Â Real estate investing is a business so you must treat it that way. Develop a plan of action and make sure you know the market and the risk. A business plan will most likely be required by a banker along with a proforma and knowing this ahead of time you need to develop a plan that shows how you will make money over time.
These tips should help any newbie looking to get into real estate investing. We will cover additional topics in this area so check back often for updates. We want to hear from you and if you have any questions or thoughts you would like to share feel free to 3237294205 so we can get your questions answered.