Real Estate Investing for the First Timer

You have probably read all the information on the market as it relates to real estate investing and are
well aware that many of the world's millionaires who made their fortunes in the real estate market.
As a result you are probably all pumped up and feel ready to throw your hat into the ring and begin
your own real estate portfolio. There is certainly nothing wrong with being full of enthusiasm so long
as it accompanied with a practical investment strategy because there are many wrong ways in which
an investor can go about the process.

The process is about how to find, fix and flip for profit; not flop with the fixer you find. Flipping properties
is my field of experience and a good deal of what will be discussed here will relate to flipping properties
though some of the information can be crossed over into rental properties and other types of real estate
investment. Even personal property can be a real estate investment. Real estate is one of the few forms
of investment in today's society in which you can actually see the changes as they are occurring.  

It is truly amazing to watch a property that was once neglected and in a state of disrepair suddenly spark
back to life right before your very eyes. There is a lot of work involved in this process though and this is
often overlooked. It is much like the labor endured to birth new life. The pains are quickly forgotten when
looking into the face of the outcome.  

Keep these things in mind for your first time and you should be well on your way to future success. You
should also realize that the first few investments are learning experiences more than anything else. If
you do not achieve the success you were hoping for (or success to a lesser degree than hoped) you
should not give up on the dream all together simply learn from the mistakes you will make along the
way as well as the mistakes that others have made.

Real estate investing is not an exact science. There is no formula in this business that guarantees
success. Even seasoned professionals will find the occasional bump in the road even on a property
for which they had high expectations. Stuff happens along the way that will cost money, delay the project,
or set the project back. These things are stumbling blocks no doubt but should not be allowed to derail
the entire project. When these things happen go back to your original plan, reassess the situation and
create a new plan with the necessary adjustments in mind. The key is in sticking to a plan the entire time
and never throwing the plan out the window and flying by the seat of your pants.

Your plan will be your lifeline throughout the project. You need to have a plan and a budget in writing.
One great rule of thumb is that you set aside double the amount of money you plan for in your budget.
This gives you a bit of a safety net for the inevitable things that will go wrong. Things will go wrong on
almost every flip you encounter. Even the seasoned professionals that have television shows about
their flipping efforts encounter problems in almost every single flip, rehab, or renovation. 

For your first few investment purchases it is recommended that you purchase properties that need little
more than minor cosmetic repair rather than complete rehabs or renovations. This allows you to get
your feet wet without the incredible risk of going off the deep end mentally, emotionally, and financially.
These properties represent lower profits but also lower risk. They also allow you to gain valuable
experience and raise a little capital in which to invest in properties requiring more extensive work
in the future. 

Keep your eye on the carrot at the end of the project. Far too many would be property investors give up
just before they reach the point of true profitability. The goal is the profit at the end of the project.

=================================================================================

To find out more on Realty Investments and related topics Doyle invites you to visit:

All Biz Facts and Realty Investing
=================================================================================