Real estate Investing - What you need to know

Start with Research


A lot of Real Estate Gurus selling products would have you believe that Real Estate investing is the easiest thing in the world. You just buy their product, and you will be a millionaire overnight. Now, I am not saying that Real Estate investing is as hard as being an Astrophysicist, but there are some things that you will need to know.

The first thing is you need to have a plan. An important part of that plan should be, to always work on getting as much Knowledge in the Real Estate Market as you possibly can. At the same time you will need to set financial goals, and set a realistic time frame in which to achieve them. You should also determine whether you are going to buy property to wholesale to other investors, to fix up and resell at retail, or hold on to for the long term and rent. This will help you stay focused.


Should you only invest in the city?


Some rural areas are experiencing tremendous amounts of growth. Some of this growth is coming from families with small children as well as retirees. These people consider the country a safer place to live. However, there are places where the population is in decline. This is where market research will come in to play. You want to make sure that people are still moving to that area when it comes time for you to sell your property.

Usually there aren't as many properties available in rural areas as there are in the city, especially in the booming areas. So, if you are going to invest in those areas you need to be up on your research, and be ready to take action when you come across a good investment. A good deal won't be available for long. Keep in mind it could take longer to sell a property in the country than it does in the city. A good idea would be to advertise in the city or cities nearby as well as the rural area the house is in.


Should you buy in a bad economy?


Most seasoned Real Estate Investors would say that a bad economy is the perfect time to buy. The economy is like a seesaw it goes up and it comes down, and like a seesaw it will go back up again. The thing to know about buying in a bad economy is that you can find incredible deals.

There are several reasons for these incredible deals. Sometimes it is a dual income family and one person loses their job, so they are no longer able to afford the mortgage payment. There are also REO's which stands for "Real Estate Owned", in other words they are homes the bank had to foreclose on. Since the banks are in the business of lending money and not being landlords you can usually get these properties at a steep discount. The point is, that during a bad economy there are a lot of good deals available, but always remember to do your research and have a plan.

Zach Kling writes Real Estate and Business related articles, as well as being an entrepreneur on-line and off. For more Information and Resources, please visit my website: Resources For Investing In Rental property And New Real Estate Investors