As humans we all have dreams. Some are small and some are large but they all have one important thing in common. They almost ALL require money and many of these dreams require reoccurring income to become feasible. It is for this reason and this reason alone that I decided to start investing in real estate.
I have talked to many friends about my ventures and by and large they don't have the one key ingredient required to join in on this great business opportunity. They don't hav e an appetite for RISK. This is the most important thing to figure out about yourself before pursuing real estate. You need to be able to handle a some risk which if you read my guide will be a lot smaller than you might think.
If you want to know how to become a real estate investor this is the first step to think about. You need to have some capitol in order to make investments. Fortunately this doesn't always have to be in the form of cold hard cash. If you already own a primary resident you may be able to use the equity you have built up to purchase additional property. If not, than you're going to have to start saving your pennies because most banks these days require at least a 5 percent down payment on any property you might purchase.
One of the best opportunities I have found in my local community is to buy houses or condos and then rent them out to people. It is very profitable if you know what you are doing because the renter ends up paying fo r most if not all of your mortgage payment. Plus, if the market is solid you will grow your wealth by having the property go up in value over time.
The strategy I have been using because I am a younger person and thinking longer term is to buy new properties so there won't be major renovations to do for a long time. Yes my payments and money owning is higher than if I had bought an older place but I am able to attract better renters and they are willing to pay more rent for a nice place. In fact I've never had a month without a renter in a newer suite.
Another thing that you should be good at if you want to become a landlord is reading and assessing people. You want to find a renter who will pay on time and who will not wreck the place. Thankfully, it is mostly common sense. Chances are if you are a person of any significance in the work place that you have already developed a decent ability to read people.
Being a landlord is a huge opportun ity to grow your wealth but it is not the only opportunity. There are those who buy lots and sit on them. The benefit to this method is that the down payment can be quite small. Just be sure that lots in your area are going up in value at a pace that will provide more money than what you are paying in interest.
Thanks for reading and I hope you too will become a successful real estate investor.
Main site link: http://teresarmartin.com
Attorney Teresa Martin is a seasoned real estate investor with a focus on creative acquisition strategies. If you are looking to learn how to become a real estate investor, visit her website and be sure to opt-in for her weekly newsletter.
A Complete Guide to Becoming a Real Estate Investor