Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Buying Your First Investment Property > NetSparsh - Viral Content you Love & Share

Buying Your First Investment Property

"Begin With The End In Mind"

I first heard the phrase "Begin with the end in mind" in a Steven Covey book called "The 7 Habits of Highly Effective People". This expression makes a lot of sense because the fact is, you can't get where you're going, unless you know where you want to go.

Most new investors understand that real estate is an investment vehicle that makes sense. We all know that many fortunes have been built with real estate. But when you are first getting started, all the available information can be very confusing. I often receive emails asking "what strategies should I use?" or "Where should I look to find deals?".

One reason these issues are so difficult to understand and sort out when you are new to the investing game is that the answer to the question can be different for every individual.

Seminars tend to package information in a "one-size-fits-all" crash course. But this inevitably leaves unanswered questions for each individual user. Simply put, each person has their own individual situation with regard to credit, income, employment, assets, etc. All of these factors can affect your investing choices and objectives.

Compounding this confusion is the sheer number of strategies. Should I own rental property? Should I fix up and resell? How about Options? Or, how about buying tax leins? There are so many choices, how is one to know what to do when just starting out?

I can remember floundering around myself. I spent thousands of dollars on different courses, trying to put all the pieces together and gain enough understanding to know what I should do first.

It seemed that no one wanted to tell me anything useful unless I paid them first. I soon found that no matter how much money I spent, there were many unanswered questions. I felt frozen by fear, because I simply did not understand what to do first. As a result, it was several years before I actually felt comfortable enough to get directly involved in buying a property.

Today, after having seen and participated in many deals, I know that step one is decide what you want real estate investing to do for you. In short, where do you want to go?

Like any trip, you start out by deciding where you want to go. Once the destination has been chosen, you figure out the best way to get there.

Many of the most successful and wealthy investors I know, built their fortunes with rental property. Some of them own 40 or more rental houses. Some of them own commercial properties like gas stations, storage facilities, or office buildings. They each had the same destination, that of cash flow from rental income, but two drastically different ways of getting there.

Frankly, most of the really successful investors are very patient men and women who build their portfolios slowly over a number of years. They are cautious and prudent, buying only when they know the deal is a good one.

Today, many people are lured into investing because they have heard the stories about how you can buy property with no money down, and take out enough cash at closing to pay off all your debts. This is possible, but creating one debt to pay another does have it's risks.

Let's say that your ultimate objective is to achieve $5,000 per month passive income from rental property. Now, think of that objective as if it were a city on a road map.

Most cities have a number of different roads you can take to get downtown.. It is the same way with your investing. Different people will arrive at the same destination, each one using a slightly different route to get there.

Once you decide where you want to go, your route to your destination will be determined by your financing options. .

If you have great credit, income for which you receive a W-2 statement, and lots of cash for a down payment, your financing options will allow you to take virtually any road you wish. The fact is, good credit and cash will get you where you want to go a lot faster. But it's not the only way.

If you are credit challenged, self-employed, or lack cash for down payments, your ultimate destination can be the same, but you will need a different route to get there.

Your financing options determine the route you have to take to get to your destination. In essence, the answer to getting started is find out what kind of financing you can get, and then find deals that work with your available financing options.

If you can't get any kind of financing at all, you can still buy deals where the seller will agree to finance the deal, or some scenario where financing is provided without you having to qualify.

If you have decent credit but no cash, there are investor loans with low down payments, that may make it easier for you to get in with little cash.

If you have great credit and cash - hop on the expressway. Look for any good deal, since you can get a loan at excellent rates, in addition to taking advantage of any good seller financing deals that come your way. You have the most options for getting to your destination.

No matter where you start from, you can still wind up at the same destination, and achieve the same objective.

Step One: Decide where you want to go. Then, get with a good lender to find out which roads you will be able to take. Even if you have to start out on the "no cash, no credit" back roads, remember that sooner or later, if you keep driving, you will find an access ramp to the expressway.

Donna Robinson is an investor, author and consultant on real estate investing, located in Atlanta, GA. Read more of her articles and get her newsletter on her website, http://www.RealEstateWholesaling.com

Her email address is service@realestatewholesaling.com

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Mansion Global

Vietnam: The Next Frontier in Asia's Luxury Real Estate Market ...
Mansion Global
Activity in the luxury real estate market is surging in Vietnam, mirroring a booming economy that posted a 7.38% year-over-year increase in GDP in the first ...

and more »

The Columbus Dispatch

Real-Estate Matters: Age shouldn't sway couple from purchasing their first home
The Columbus Dispatch
On the other hand, your state and local taxes (the so-called SALT deductions), including real-estate property taxes, are limited to $20,000, meaning that if you pay more than $20,000 in real-estate taxes and state income taxes, you can deduct only up ...


Meet the Inman Innovator finalists: Most Innovative Real Estate Team
Inman.com
Chris Suarez, Xperience Real Estate: Chris Suarez built his business on his deep experience in real estate law and real estate sales, and he's crafted his team strategy around one-on-one agent training that helps elevate agents' strengths and minimize ...


Real estate transfers: Reported July 15, 2018
Herald-Whig
Kenneth C. Franks life estate, and Linda S. Franks life estate, property at 1616 Monroe, to Kary L. Franks, Kenneth A. Franks, Kristina L. Franks, Kurtis A. Franks and Katherine L. Phelps. Elizabeth A. Harman, property at 1512 Locust, to Ching Fen ...


Buffalo News

Erie County Real Estate Transactions
Buffalo News
Following are real estate transactions over $5,000 as listed in records of the Erie County clerk's office for the week ending June 8. AKRON • 13 Marshall, John R. Schrock Sr. to Courtney L. Flick, $195,000. • 206 East Ave., Karen A. Sowinski; Karen ...


The MReport

Non-Resident Foreigners Sold $10.5B of US Real Estate in 2015
The MReport
There's international appeal in U.S. real estate, and, according to recent IRS data, certain countries seem especially smitten with it, Zillow Research reports. Back in 2015, non-resident foreigners sold $10.5 billion of U.S. real estate, trouncing the ...


The Columbus Dispatch

Real estate report: Home-improvement pace beginning to slow down
The Columbus Dispatch
Home renovation continues to roar across the nation, though at a softer level than the past few years. According to an annual survey by the home-renovation website Houzz, 51 percent of the 150,000 people who responded plan to begin or continue home ...


MassLive.com

Real estate transactions for Hampden, Hampshire and Franklin counties: July 15, 2018
MassLive.com
Agawam. Christopher M. Ostrowski and Carolyn Ostrowski to Valentina Naboka and Dmytro Pylypenko, 340 Regency Park Drive, Unit 311, $113,000. Frank R. Buoniconti and Jeanne L. Buoniconti to Angela Poon, 776-778 Springfield St., $200,000. James P.


Emerging Europe

Eastern Slovakia Increasingly Popular for Real Estate Investors
Emerging Europe
Recreational real estate in eastern Slovakia is becoming increasingly popular amongst domestic property investors. The most wanted properties are cottages near Michalovce in the eastern part of the country. According to Martin Lazík, a real estate ...


nwitimes.com

Gary schools hit the real estate market
nwitimes.com
GARY — Vandalism, looting and arson have plagued abandoned Gary public school buildings for years amid dwindling enrollment, towering debt and tax liens on properties that long-tied the hands of district officials. Now, city and school officials hope ...

Google News

Tenants in Common (TIC)

Tenants in Common is a way of sharing ownership of... Read More

Timing Is Everything When It Comes To Buying Homes

The old adage that "timing is everything" especially applies to... Read More

The Real Estate Market In Spain: Making Profits Out Of Sand

The Real estate market in Spain keeps gaining momentum and... Read More

Making a First Impression When Selling Your Home

So you've decided to take advantage of the booming real... Read More

Real Estate Bubble: Sophisticated Musical Chairs?

The real estate bubble is a hot topic today; annual... Read More

Is An Old Home for You? ? The Pros

If you prefer a home that is unique and has... Read More

Not Everyone is Buying or Selling, Some are Doing Both

As if one real estate transaction is not hectic enough?... Read More

5 Steps To Choose the Best Cincinnati Realtor

Excluding some professional real estate agents buying a house is... Read More

Real Estate Bubble Adding Price and Risk to Location, Location, Location Mantra

Real estate investors familiar mantra location, location, location are nervously... Read More

An Often Overlooked Secret of Marketing and Negotiating for Real Estate Investors Looking for Deals

When you call sellers, what do you say? When you... Read More

Dont Sell Your House--Ever!

Keeping your existing house when you buy a new one... Read More

Should You Buy a House or a Condo?

A big debate these days is whether or not to... Read More

One Stop Shop for Buy to Let

As the buy to let market continues to go from... Read More

Selling Your Home Quickly, Even if You Have No Money For Repairs

Do you need to sell your home quickly? If so,... Read More

Buying and Selling Distressed Houses for Maximum Profit (Update)

If you want to become a real estate investor, find... Read More

Real Estate Professional in the Palm of Your Hand

GETTING THE MOST FOR THE LEASE-TRACKING YOUR REAL ESTATEIf you... Read More

Are Signs Important?

Signage, though quite fundamental in nature, plays an important role... Read More

Guide To Finding The Perfect Central Illinois House

Central Illinois is an area rich in cultural activities and... Read More

Evil Gains Entry

When we open our doors to strangers, we can never... Read More

How to Find and Buy a Bargain House with Little or No-Money Down

Real estate investors know how to make money buying distressed... Read More

Why Real Estate Investment?

Why should you invest in real estate? Well, investing in... Read More

Termite and Moisture Damage Not Reported

I have done so many appraisals where I saw obvious... Read More

How to Build A Rental Property Money Machine

If you are looking for a steady, income-producing investment that... Read More

FSBO: For Sale By Owners Chapter One

She reached the phone on its second ring. "This is... Read More

What To Expect From Your House Appraisal

Having your house appraised can be a scary step in... Read More