If you have been contemplating a career or side business as a real estate investor then there is no better time to start then the present. When you are first starting out there are many things to learn and it is important to remember that the learning curve can be steep. In order to guard yourself against huge losses it is often better to start off slow and with lower priced houses. As you can experience and knowledge in the field you can start close bigger and more profitable deals. For a first house you will typically want to find one that is undervalued and in need of basic repairs. Often a house that needs some simple repair work like painting, new carpet and other easy to do repairs can be purchased at a reduced rate. Then by putting in a little elbow grease and making the repairs and painting the house it can easily be flipped for a much higher price or even rented out for a better rate. This helps new investors get started by getting their feet wet.
If you think of yourself as a handyman and feel that you can do the repairs yourself, you can save a lot of money. On the other hand, if you need to hire someone, you should always make sure that the individual or company that you hire is qualified to do the repairs. If you aren?t comfortable with doing any of the repairs, you should inquire about a subcontractor or company that will do it for a reasonable price, or perhaps a share of the money once you have resold the house.
If the house you are thinking to purchase and resell has any type of structural problems, you should always get an estimate from a reliable contractor before you make the purchase. If you decide to stay in the business, you?ll learn a lot more over the years, although you should always hire a contractor when you first start out. Once you get all of the estimates together, you can make that final decision on how much of an offer you want to put down on the property.
After you have a team together and successfully renovated and resold several homes, you?ll begin to feel quite a bit more confident with buying homes that need repairs. All it takes is time and practice – and you?ll be buying homes that the average investor wouldn?t think twice about. This can be a huge advantage when you are looking for homes to buy and resell, as there will be less competition to worry about. You?ll also be able to get a lower price when buying the home, simply because you can use the cost of the repairs to your advantage.
Once you are able to do repairs on homes, including structural problems, you?ll have a huge advantage in the market. You?ll be able to buy virtually any home, including those that other investors choose to ignore. Doing so can be very profitable for you, especially if the house is in a well known and well desired neighborhood. After you have done the repairs, you can resell the home for a much higher price than you paid to acquire the home.
When you start looking for houses that you can repair and resell, you should always take your time and buy the right homes. You won?t have the money, time, experience, or support to buy the bigger houses at first, which means you won?t have any room for mistakes. Once you have purchased and resold a few smaller homes, you?ll eventually be able to work your way up to the bigger homes – which is where the big profits will come into play.
Keep in mind that when you are starting out in the field of real estate investing you will want to take things slow at first and build your own knowledge of the business. Don’t expect huge profits to come rolling in overnight, it takes time to build your knowledge and your team before the big deals and big profits come in. Once you have been at it for a few years it will become easy to spot the more profitable deals and you will know all of the terms and have your team ready to assist. The is a very exciting field to be working in and it can be a lot of fun when taking slowly and carefully.