First Real Estate Investment Requirements

First Real Estate Investment Requirements

If you want to make your first real estate transaction, there are a couple of requirements, no matter if you want to invest as your primary residence or as a planned investment. This can be profitable and exciting, but it can be overwhelming too. Follow the following steps when starting out in real estate investing.

  1.  Educate yourself. I can’t stress this enough. Real Estate Education is super important. Relax, you don’t have to get back to school, but you do need to take responsibility for what you need to know, and learn it. Study the markets you’re interested in entering. Use the internet, local land records, and area real estate agents to find the sales prices of comparable properties. Learn everything about the transaction process, every person’s role and responsibility, the legal requirements and insurance. Each component carries fees that vary, and by researching prices you can avoid losing money.
  2. Get pre-approved for financing first, before finding the property. A big and very common mistake that the beginner investors make, is to find the property first and after that trying to get financing for that house. Before anything else, get pre-approved for financing that property. Decide on a lender by choosing a bank, mortgage company or online loan company. When you talk with your lender, tell them how much you are looking to invest and you will be surprised how many informations they will gather about you (your income, credit history, liabilities) and give you an idea of how much they will finance. Then you will need to decide which option works best for you. Financing plans have many different variables , just to mention a few: different rates, initial cash investment, and tax implications.
  3.  Find for your house or other property . Finding real estate that you can make a profit with can be tricky. Use the internet and local newspaper’s “Real Estate” section. Look for abandoned and “For Rent”” homes. Drive around the area you’re interested in and try to find “For Sale by Owner”” properties… or … get modern and use a Real Estate Lead Generation System!!! Work smarter, not harder!
  4.  Negotiate a fair deal. Once you’ve found the perfect house, you will need to negotiate for the best deal you can. Don’t expect that you will get a really bargain because the sellers are trying to get the most money for their property, and buyers are trying to pay the least amount. Negotiating the right way involves working together with the seller to find a win – win situation. Be confident, but plan to make concessions. Inflexibility often causes expensive delays and added stress and you could lose that property.

This is all that I can think about right now: I will add more if I get anything new in my mind. Until then, enjoy this free and super valuable real estate investing education.

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2 Replies to “First Real Estate Investment Requirements”

  1. You are more than welcome. Please feel free to check my blog again in the future. I am going to post incredibly value content for free. All the best, Eloise

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