The Fundamentals of Real Estate Investing

With the volatile stock market raging like a bucking bronco, many people have turned to real estate investing as a way to make extra money during uncertain economic times.

There's no doubt that if you listen to the late-night real estate infomercials, you'll believe that real estate investing is easy money. The fact is - nothing is ever "easy money". Getting started in real estate investing isn't difficult though - and you can make money on it. You just have to keep these following tips in mind before you start.

1. Real estate investing does not make more money than the stock market. It might seem like it does "right now", but in keeping pace with inflation and compound interest, real estate investments just don't give you the same kind of wealth.

If you like the fast-paced thrill of buying and selling on Wall Street and playing the numbers game, real estate investing isn't for you. On the other hand, if you don't mind watching the housing trends, buying low and selling high, or fixing up houses to resell - real estate investing may be an ideal path for you.

2. Look for mentors you can work with - Having a knowledgeable real estate agent who knows the area, and a real estate attorney who can write up all the necessary contracts and paperwork, are two invaluable people to your investment-seeking team. It also helps to find a reliable mortgage broker you can create a relationship with to help seal the deals.

3. Buying the first property is often the hardest - What some investors do is buy a multi-family unit, live in one apartment and rent the others, generating income without the added expense of their own rent. The real estate agent (or agents) you work with can also help you spot a great deal and know when to move on. Once your first property builds up enough cash flow, you use that income to purchase another property and continue the cycle again.

4. Should you buy a course? There are lots of excellent real estate investing courses out there. There are also a lot of hyped up salesmen promising you millions in your sleep. If you feel like learning real estate investing yourself is too difficult or overwhelming, having a mentor to follow will help. You can read about the courses we recommend by following this blog.

In the end real estate investing can be a lucrative career with lots of potential - if it's done right. The key is to align yourself with people "in the field" who are knowledgeable, dependable and willing to answer your questions as well as those of your prospects.

Being able to learn from the pros, knowing your local area and building the background needed to spot a good deal and jump on it are the crucial fundamentals of top real estate investors. Learn these skills and your options for profiting will be wide open.

The More You Know,

Judy O'