Sunday, January 14, 2007

The Ultimate N.M.D.

About twenty-five years ago I made one of the biggest gambles of my life by starting out with nothing and ending up with my first piece of real estate, a small apartment building. Most people would not have the guts, let alone, could stand the stress factor of starting with an empty building as their first real estate deal. It was such a steal, I couldn't past it up! And boy... I'm glad I didn't! As soon as I had the building filled, I then sold the building for more then twice what I had in it. My banker really loved me!

You see, my education in real estate is long and deep. So, I knew from day one what I was getting myself into! Everyone needs to educate themselves before attempting to acquire real estate as an investment.

Education... That’s exactly what this article is all about.

Just as Donald Trump had starting out, you need a great mentor with a proven track record to lead the way and support your efforts… also a proven business system that allows you to invest in all types of real estate without ever having to tie up all your own cash. It is the ULTIMATE NO MONEY DOWN. You will learn to buy real estate using a new business line of credit instead of your own cash.

If you are an avid goal setter you will want to read this to learn some specifics associated with real estate investing. However, if you are limited with real estate investing educational dollars and need to generate quick return on investment, I think fixing up cheap houses is an ideal beginning point. An untapped niche market in real estate investing is fixing up houses that can be purchased by America's renters.

The first house in a real estate investing career can be scary because it is the beginning of a new business venture. I contend that “cheap houses” are the lowest risk property for beginning a real estate investing career. Houses that really only need some yard work and a few gallons of paint are readily found in the real estate buyer's market.

In the single most valuable lesson in Donald Trump's real estate career, he learned how the government would assist buyers in purchasing property with little or no financial backing and how to get such aid. You see, half of the money that is made in real estate investment is with property that never made it onto the Multiple Service Listings.

Like Mr. Trump, millions of men and women have become financially independent by investing in real estate, and with the proper knowledge and experience, there is no reason why you cannot do it as well. A real estate investor applies the knowledge of the fundamentals real estate investing.

As with other investments it is very appropriate, and smart, to find out as much as you can about the property, since types of real estate investments and the level of risk they pose and level of profit they stand to make you vary widely. One of the key factors in staying a successful real estate investor is strict adherence to your investment strategy and criteria, which are tied closely to your investment goals.

Like any other investments, investing in real estate has its upsides and downsides, and since there are different types of real estate to invest in, you will need to do your homework. Maybe you’re interested in investing in the lucrative Florida and Las Vegas pre-construction real estate markets but you don’t know where or when to buy?

If you look at the general process for success in real estate investing you will see some important early steps involving legal and accounting advice. A lawyer and accountant are key members of your team. Including a good appraiser, escrow agent, and title rep. Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code. When the money made from these transactions is used to reinvest in other ventures, the return rate highly exceeds any other method of Real Estate investing.

It will always cost you more to be ignorant, then to be educated about real estate.

Finding a Deal