How to Start Investing in Real Estate

When investing, it’s important to understand the risks that could possibly come into play. In this case, we’re looking to invest in real estate, so it’s best to avoid working with lenders that can be questionable. How to find good money lenders is another topic for another day. We’re here to learn how to invest the money we already have. So, how do we go about doing that?

          1. Find a partner

A great way to attract a business partner is to find a great deal. Once that deal is yours, flaunt it! You’ll have people begging to be your business partner in no time. 

Because you’re a beginner investor, you don’t have that much money to begin with, but now you have this great rehab deal under your belt. Let’s say you have $1000 to kick start your real estate investing career. You need to find that partner of yours that is going to bring in the big bucks to help you pay for your deal. So, you place an ad on Craigslist, and get a response.

Now you bring the deal, and your partner will bring the down payment. Together you split the profits 50/50.  You had the deal, you hold the cards.

It’s as simple as that.

          2. Wholesaling

Wholesaling is a great way to invest in real estate when you’re just starting out. Basically, wholesaling real estate is when you go out and find a property, you sign a purchase and sale agreement, and then you go find someone else who is looking for a great deal for you to sell it to them. 

Let’s say you find a great deal for 100k. You go to the seller and sign a purchase agreement, but because you’re new at this, you don’t have 100k to buy the property. So instead, you go find a house flipper that will happily take the property off your hands for 110k. The homeowner gets the 100k, the house flipper gets the property and you walk away with 10,000 as profit. 

Essentially, you go out and buy a property and then turn around and sell it for higher than you bought it for. 

          3. Buy a Rental Property

There are a couple different ways you could go about doing this. Maybe you could take the 10k you made from your wholesale deal and purchase an entire property. You could then use that property and rent out any room to tenants. 

You could simply purchase the property you want to live in, and rent out other rooms that aren’t being used. Regardless of which you choose, you are the landlord. Because your tenants are in such close proximity, you can be readily available to ensure your investment succeeds. 

By: Mike Pugliese