Sudeira

I’m a beginning real estate investor, and would like to know of resources (i.e. books/people/internet) where i can get info on buying houses for resale and for rentals. But just want to gather information that will keep me from making costly mistakes and avoid pitfalls.

This question is echoed by many people across the country that are looking for the doorway that leads them out and onto the path of real estate investing.  But that door is hidden and often times locked or at least damn sticky.

#1 Piece of advice for new real estate investors – Don’t get suckered!

When you are just starting out, everyone and their cousin wants to sell you the secret to this and that.  Everyone has a path to fortune in just minutes a week.  What?  You a bridge to sell me too? 

There are no secret formulas to real estate investing!

I am sure I am going to tick off all the ‘Gurus’ with that statement, but it is true.  No Guru has a secret formula, there is no magic website that has direct and secret access to buyers who are giving away homes.

Guru real estate trainers have one agenda; that is to give you enough information each time to keep you coming back and buying more, hoping the secret to making a fortune is right around the corner.  They have all made their money doing various things and are now just leveraging that to make even more money.  Honestly, do you think Donald Trump has ever done a short sale on a single family home?  I bet not!

So rule #1 is avoid the so called gurus and the hucksters and the websites with golden promises.  What you need grasshopper will not be found there.  Take your time and start reading articles on sites like  Bigger Pockets where other real estate investors hang out.  There is plenty of information to get started with there. 

If you want to get some books on real estate investing then just be sure that they are recently published.  The world of real estate investing is constantly changing and while a book may have been a great resource for hot strategies 5 years ago, now it is out of date.  Books can give you some good background info on the business and highlight the big principles, but they are just the start of a foundation.  You wouldn’t want to go to a doctor that had only read the course manuals would you?

Next time we will go over my #2 piece of advice for would be real estate investors; Picking Your Poison.

Guest Post by:  Laurel Lindsay

Real estate investing can be financially rewarding if you have a clear understanding of the ins and outs of this kind of business venture. If you want to invest in properties, then it is essential that you understand the different methods by which you can generate profit. There are several investment options, and it is important that you are able to make an informed decision on which particular option is suited for your financial situation. Your foremost concern will be the establishment of your investment goals and targets. Your potential benefits in owning real estate properties must be consistent with your goals and objectives.

You can opt to become a developer if you plan to go for real estate investment. As a developer, your main focus shall be on development properties. You will purchase the land and build structures on it. If you are going to invest on a land that has an existing structure, you may decide to tear it down and replace it with a new structure. You may also expand or improve the existing structure. This is the type of investment that requires thorough and careful planning. It is also essential that you have a strong background and understanding of development, engineering and construction laws.

As a real estate investor, you can specialize on distressed properties. Your investment options shall include properties that are about to be foreclosed, under foreclosure proceedings and properties that were already foreclosed. This is a good investment option as there are a lot of properties that are sold way below their market value. However, you need to have a keen eye when it comes to assessing the overall state of foreclosed properties. You must also have a clear understanding of the legal aspects of this type of real estate deals. In most cases, you will have to seek the services of a lawyer who has the experience and training in handling such types of transactions.

A fix-upper property is another investment option. This is the type of property which you will have to fix to add value before it is sold for profit. Among all the options available to real estate investors, this is the one that can deliver financial rewards quickly. With proper assessment of the condition of the property and reliable estimate of the cost of repairs, you can be able to turn a home into a high value property which you can either sell or offer for rent.

You can also invest on properties and decide to hold on to these properties for a longer time frame. You are into long term real estate investment if you are going to retain ownership of properties until the value of the property reaches a certain level. You can opt for this type of investment if you are investing on properties in areas where development is in full swing.

Finally, as an investor, you can rent out properties which you have kept for an extended period of time. While you are still waiting for the right time to dispose of these properties, you may opt to rent them out in order to generate income through property rentals.

These are the major investment options that you can consider if you want to become a real estate investor. These are just the bare essentials of this type of business venture. You have to learn other technical details before you can actually make your initial real estate investment. You must also keep yourself updated with latest trends and developments in the real estate market in order for you to become a successful real estate investor.

Learn how to sell your own house here: For Sale By Owner

If you’re looking to buy a home from an FSBO listing check here: FSBO Listings

Article Source: http://EzineArticles.com/?expert=Laurel_R._Lindsay

Question: I know where the deals are; I just don’t have any credit. How do I get investors?
Answer: If you’re a real estate expert and you know where the deals are, and you’re able to find a deal, whether you have excellent or poor credit, you need to find a partner who has complementary skills to those that you have. A significant part of our program is about putting people with complementary skills together. I recognize complementary skills when I see them, and I want you to be able to recognize what your strengths and weaknesses are, so you can find other people who can fill in the gaps where your weaknesses are. There’s no harm or shame in admitting your weaknesses. In fact, great strength comes from acknowledging where your weaknesses are, because it enables you to fill in the gaps with other people who can collaborate with you, who bring different kinds of skills to the table.

Question: Where are the funding sources for lending products?
Answer: Lending products for successful real estate syndications are available through all of the traditional channels. Banks and real estate lenders are the best providers for these products, but depending on the circumstances, and depending on the nature of the collateral, hard-money lenders might be the way to go. There are many hedge funds in New York and in other places that have tremendous pools of capital that are available for you to tap into. If you do not know how to access these pools, I’m happy to make introductions and recommendations. However, I reserve these for people whom I know well, and for people who come through my programs, because these are prized contacts that I do not want to waste on people who are under-prepared to speak with them in the most sophisticated way.

Question: Where do you get investors?
Answer: This is the hardest part of the real estate game. If you don’t have investors, no matter how great the real estate is that you find, you are going to have a difficult time getting the job done. The best way to accumulate investors is to start small, deal with people you know, and grow your investment opportunities as you succeed and begin to develop an investor pool. There really is a lot of money out in the marketplace, and if you have a great deal, there is always somebody who has the money to fund it. You may have to partner or you may have to share, but the money is out there. So, you never really have to worry that you are going to pass up an opportunity. If you find such an opportunity, call my office and we will talk to you about how to get the job done.

Joel began his career as a CPA with the prestigious firm of Price Waterhouse. During his time with the company’s Entrepreneurial Services Group, Joel immersed himself in the real estate syndication business. After reviewing hundreds of partnership agreements and preparing as many tax returns, he left Price Waterhouse in 1986 to start his own syndication firm, raising several million dollars in three short years. By 1990, Joel had built a property management firm of more than 40 employees with a portfolio exceeding $100 million. Joel continues to syndicate real estate and other assets, as well as counseling other promoters on successful syndication strategies. He is also involved in film financing and invests in early stage companies and other deals. For more information about Joel Block and his upcoming seminar, visit his site at http://syndicatefast.com/

Article Source: http://EzineArticles.com/?expert=Joel_G._Block