There are several categories of real estate available for an investor. The easiest for a beginning investor to understand and participate in is the single-family home. Why?
1. Homeownership in America is approaching 70%.
2. They are the highest demand type of property.
3. They sell quicker than other kinds of property.
4. Prospective purchasers have the widest range of financing programs available to them, making the property easier to purchase. If the property does not sell in a reasonable amount of time, it can be rented.
Why should you buy the ugly duckling?
The best property to buy is an ugly one. Look for the property that has never been “updated” or improved or one that has been improved, in a very tacky way. Don’t be deterred by the pet urine, feces, or mice droppings. Where some see damage and odor, you should see dollars and opportunity. Ugly ducklings are the properties that have the least competition, houses that can be fixed up by remodeling, not by rebuilding. Many people are scared about things like leaking roofs and broken windows. Be happy to see those things. They’ll discourage most inexperienced investors from purchasing the property. In many areas, you will be competing for some deals with “do-it-yourself” homeowners.
They may outbid you simply because they figure they can buy a home for $50,000.00 that will be worth $70,000.00 when they’re done fixing it up. It never occurs to them that they will spend $10,000.00 for materials and professional labor, one to two years working on it, and live in a construction zone the whole time. The oddest thing about it is that most people will sell the home when they’re done, thinking they did great (although they really broke even) and start the process again.
Buy, flip and sell works best in a 90-120 day time frame, with professional contractors quickly completing decorating, repairs, and renovations.
Where do go to meet the like mind people to get trained in the investing business?
There are Real Estate Investor Association all over the US. Many of this assoications are non profit. They are usually referred to as a REIA. Investor groups are for purpose of investor education, networking, and training. They bring national and local real estate experts to their meetings. They have training on wide topics like: foreclosures, pre-foreclosures, land lording, rent to own, lease options, short sales, deed offs, credit, wholesaling, find, fix, and sell, private money, lines of credit, and accounting. These are just a few of the topics they speak on.
How do you find a Real estate investors association or groups in yourr area?
You can go on line to one one of major search engines. Type in the one of follow words with your local City name: REIA, Real Estate Investing Clubs, Real Estate Investment Association, REIAs, Real Estate Investing Classes, Real Estate Investing Groups, Landlord Club, Real Estate Mentoring Programs, Foreclosure Boot Camp, Real Estate Training Classes, Real Estate Seminars, Real Estate Schools, Real Estate Courses, Real Estate Investing Network, Real Estate Conventions, Real Estate Boot Camps, and Real Estate Forums. Using a search engine as search for topic like how to find a boot camp or class on foreclosures in the state or city you are in works great.