Real estate investing 101
Real Estate Investing For Beginners California-The Importance Of A Real Estate MentorReal Estate Investing 101
Learn to Invest in California Real Estate for Beginners
Investing in anything can be completely discouraging with no guidance especially getting started in real estate investing. Real estate investing is the purchase of a property with the intent to sell, flip, or rent for profit. Currently 90% of the world's millionaires owe their wealth to holding or purchasing real estate. Which makes it an attractive investment for beginners; however, going in blind and without a mentor will set you up for failure.In this interview with Sam Weaver a real estate educator and investor he goes over the important things you need to know when getting started in real estate investing and what tips will save you money and time.
Important Lessons To Start Your Real Estate Career
Working for free to gain as much knowledge in the beginning is very important, as well as finding a mentor to guide you through the right direction and answer any questions you come across as well as investing time one on one .Learning to listen is also key in real estate, you will come across numerous of back and forth negotiations with the seller and being able to fully hear them out and comprehend will benefit both parties.One last piece of advice is to not be afraid of a major flip opportunity.
What Is Considered A Good Flip Opportunity ?
A major or “good” flip opportunity is when a house is not in the best condition. Homes with major foundation issues especially within the L.A market located in The Hills due to earthquake damage.If you’re buying properties within MLS it is best to purchase homes with numerous damage if you are buying directly from the homeowner it all falls down to your negotiation skills.However a major fixer is not always better than a light fixer; its all about your ability to come to an agreement with the seller. Direct to homeowner buying is also more preferable by staying consistent with bandit signs, door knocking, mailers, voiced ringless voicemail, text messaging, as well as realtor relationships. Although door knocking is the most effective.
The Possible Down Of Flipping A Home
Flipping homes is seen as a quick profit for many investors not looking for a long term commitment.However it does come with its downfalls, when looking for a major fix in foundation work it could potentially be a huge money factor and limit one's profit. Sometimes ‘new’ fixes in a property done by the previous owner could be unpermitted, or not up to code hiding huge set backs.It is key to show up to projects and ask contractors questions, learning construction costs can save you money and limit the chances of you getting overpriced. Also the demand on rehabs to a property being top notch due to high expectations set upon by popular TV shows on HGTV is through the roof.
The Benefits Of Establishing Relationships With Relators
When investing in real estate and not being a realtor it is very important to establish relationships with them.Realtors withhold the best marketing on zillow as well as knowing their F.A.R.M (fixed area real estate market)area very well.By investors and realtors helping one another out it comes in handy when times get tough in the market.
Advice To New Real Estate Investors
A final piece of advice for those interested in investing in real estate is the importance of a mentor being first priority.Having someone to walk properties, help raise money, and knowing when and how to fire a contractor.There is a lot of competition and you need someone to guide you in the right direction as well as be by your side to negotiate.Real estate investing 101 allows you to grow your wealth. It is up to one in how they choose to go about it and the resources in which they decide to take advantage of.