How should I start real estate investing?

[Michael Borovsky]

Hi friends,

I’m looking to begin real estate investing in the near future, I want to take the plunge towards the end of the year or next year. My head is swimming trying to figure out the first step. I live in SF, I work for the federal government. I can’t afford to live here and want to relocate. I want to go to DC but only for a raise and would stay 3 years max. When I move from SF, I will make less $ because of COLA (unless I get promoted to higher GS level). With that in mind I’m looking to buy property out of my area. I’ve been thinking about KCMO, Indy, Texas, and Phoenix. My brother is living in Phoenix, so that is a plus. 

I have been thinking that passive income through turn key properties would be my best option right now. What is the best way to build a team? How do I trust them? Where does one find solid recommendations? What is the best way to get loans on these properties since I won’t be living there?

My last question is, why don’t I just invest in Two Harbors that pays a 14% dividend instead of buying properties?

Thanks for your time. 

[Joe Funari]

@John Blackrock there are plenty of good deals in and around the Dallas/Ft. Worth area. Just because a few areas are priced too high doesn’t mean we can’t find the deals. With regards to keeping deals I find I only rehab one property at a time. So there are plenty of deals that I find for my fellow investor clients. I always give them first right of refusal. I want repeat clients. So giving them priority on the deals I come across is a sound business decision.