Newbie

[Matthew Chauncey]

I am new to both the site and to the real estate world. I am considering investing in real estate property within the next year after I take a significant time to try to understand real estate.

Let me introduce my background. I am 27 years old with a BA in economics. I have only $5,000 in debts (all student loans), and about $25,000 in savings. I currently have a positive cash flow of roughly $1,000 per month with my job. One weakness I have to address is a low credit score in the mid 600s; I recently applied for a credit card to try to help build the score. I consider myself to have a decent general knowledge of markets and business, but know very little about real real estate.

I would appreciate if some of you that have experience in real estate could answer a few questions.

1. What type of strategies do you use to control risk? (example, if you have tenants that can't pay, or electrical problems that you didn't foresee that will increase your cost, potential change in tax laws, or any other potential risk..)

2. How do you plan your exits? If you see a piece of property and the numbers look good. What process do you take to determine how you will exit the market?

3. If you had to go back and start again in real estate, what would you focus on most? why?

Any of your comments are welcome.