Basic Investment Real Estate Information for Beginners

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Author: Mark Goldberg

Article source: http://www.specializers.com/. Used with author's permission.

If you're an amateur real estate investor wondering how to get into this extremely profitable market let me start off by saying congratulations you've chosen a career that rewards both hard work and imagination. The real estate market is unlike any other line of work (notice how I didn't say job) in real estate ANYONE can become a huge success in a short amount of time. What other field doesn't require a college degree and allows you to make more then doctors and lawyers without the long pain staking hours. While most high paid professions require years of expensive schooling real estate investing requires a basic knowledge of numbers and a healthy dose of common sense.

The biggest reason everyone doesn't jump into investment real estate is because they're afraid of investing a large amount of money into something that is not guaranteed to turn an investment. There is no safety net and the idea of spending tens of thousands of dollars and risk not seeing a cent scares mainstream America. We are a culture that is continually taught "Get a hard day's pay for a hard's day work." and not "Make educated risks and play the odds to win". Maybe I'm wrong but I never once heard a parent teach their kids to work hard and take educated financial risks. This has always stumped me because history has shown that the individuals that have taken EDUCATED financial risks (especially in investment real estate) almost always come out on top. The fact is that it is very hard to lose money in investment real estate, even if you do not know the first thing about real estate or investing chances are you will still turn a profit if you have done your due diligence.

Let's face it, it's a new world out there. Buying and fixing up houses is usually profitable but you're never going to be running your own late night infomercial building and fixing up run down houses. In fact, you don't need to put any time or effort into investment houses anymore. Years ago only the big real estate investors made money building preconstruction and investment housing but now the market has adjusted o people like you and me can property with the bank's money and invest it in safe investments.

Lesson #1 - Banks are you're partners... Think of a bank as a partner when you're buying investment real estate, your job is to find a nice investment that is projected to profit and the bank's job is to lend you the money and collect interest. So the bank is really partnering with you in sense, they are trusting that the investment will do well and if it doesn't they take the house. Why do banks do this? Because they know real estate seldomly goes down in value and if the investment doesn't go well chances are they will at least break even. Notice that banks are much more willing to give investment real estate loans then any other investment market. If you call a bank and tell them your brother gave you a stock tip and you want to buy 500 shares of some stalk chances are after you hear the laughing they will hang up. This is because stocks are not tangible, that company could go out of business and the bank could have nothing to recoup.

Lesson #2 - Give it time... You're not going to become a real estate mogul over night. Give yourself time to research the industry before you buy an investment property. Remember to research not only the develops track record but also the management company. See where the investment is going to be built and ask yourself "Would I buy it here"

Lesson #3 - Emotions are for families not investors... DO NOT fall in love with a certain project or development. Many time investors go to a seminar and fall in love with a certain project and don't think about investing anywhere else. When looking for investment real estate properties you must be completely unbiased or else you could fall victim to the age old real estate pitfalls. Remember this line when researching your investment "This is just another project"

Lesson #4 - Act smart but act quick... If you like a investment project (especially a preconstruction development) be sure to ask the brokerage how much time you have to invest. With the rise of real estate investors entering the market the chances are if a good development opens up in the preconstruction phase it will be sold out in under 72 hours. Do your research but remember those who get on board early make the best return on investment.

If you have any questions on getting started in the investment real estate market please visit my website or call:

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