I am writing a paper (8pages) on Real Estate investment and im wondering if anyone can give me a step by step how to on how to start in real estate investment, guess it’s a bit vague but im starting at the basic whats your first step you take and then where do you go from there?
It entirely depends on what aspect of REI you want to do. Most people think of REI as buying property to hold and rent out. There are plenty of threads on here about how to evaluate potential deals, building a team (lawyer, realtor, accountant, repair people, etc), finding financing, etc.
You could write about many different types of REI: bird dogging, Landlording, Flipping, Rehabbing, Lease Options, Owner Finance, etc.
Wouldn’t be hard to fill 8 pages at all.
When is the paper due and what class is this for? Do you have any interest in REI or is this just an assignment?
yes i really like ur idea of talking about the different types of investment thats what i was more interested in. It’s for my intro to business class, and it’s due the 18th but if i want extra credit its due tomorrw, haha. Im pretty fast at writing papers once i have a start and my information i can just bust it out but i was stuck on how to start. It is just an ssignment, but i got to choose the topic so im interested, but it would be a move i could make for many years, getting through college first, haha.
any tips on where i can find info on those? so many sites want me to sign up and dont really explain they kind of assume i already know what im looking for…if i already knew, i wouldnt be looking for it >.< lol
If you look through all the forums and read the posts, you will probably get lost in the details and fail to see the big picture.
I look at real estate investing as a set of strategies. There are really only five.
Buy and Hold Strategy. Probably the starting point for most of us. Here, you purchase a house with the sole intent of keeping it for a rental. For this method to be successful, you must purchase under some set of price and terms that allow for a healthy and positive cash flow.
Buy Low – Sell High Strategy. This is a cash generation strategy. You purchase a distressed property in a neighborhood with sales activity. Generally, the house will need cosmetic and/or structural repair. Your purchase price must be low enough to allow room to cover your repair costs, holding costs, and resale costs as well as leave room for a healthy profit.
Buy Low – Sell Low Strategy. Often, this strategy is referred to as “flipping” or “wholesaling”. The key to generating fast cash is to not be too greedy. Here, you purchase, or contract to purchase, at a price below that which another invstor would be willing to pay.
Leasing Strategy. In this strategy, the rights of use, enjoyment and occupancy are controlled by a lease. Here, you find a property you can lease under favorable terms, then sub-lease the property for a higher rent. You become “sandwiched” in the middle of two leases for a profit.
Option Strategy, An option is the unilateral right to buy (or sell) a property. You control the property without the headaches associated with maintenance, management, income or expenses.
Some strategies can be combined. For example the Leasing and Option strategies can be combined with an Option stacked on a Lease (generally called a Lease/Option) which gives you control of both cash flow and appreciation. If you want to stack even deeper, Buy Low then Sell High with a Lease/Option.