Real Estate Investing made Simple

I have never considered myself much of a writer, but when I thought about writing a blog about the ease and simplicity of real estate investing I just couldn't help but throw down some of my knowledge and experiences into a blog to hopefully help others on this path and eventually just help people understand the reality of investing in real estate, it's not complicated like many wealthy investors like to make it sound, it's not overly simplified and exceptionally optimistic like HGTV would like to tell you. Investing in real estate is probably the most similar in my opinion to Monopoly. The rules to get started are fairly simple and get quite a bit more complicated as the game progresses, also the biggest challenge and help at the same time are other players. They can sink your deals or they can open the best opportunities ever so being a well-liked player in the game will give you a huge advantage. None of the rest of the game really applies at this point in what I want to address, but as it does I will be sure to reference it.

2019 will be amazing! An affirmation that many of us have already said a dozen times. If you don't believe 2019 will be amazing then this post is not for you and I would recommend closing this window right now to avoid any more optimistic outlooks that will attempt to change your mind and reduce your pessimism because that might just be terrible. Here is why it will be amazing. You are considering investing in real estate or you are already are, you are reviewing your assets and financials to see what is possible, or you are just hoping to gain knowledge on the subject to see if it is right for you. Let's take a quick look at that last one and help identify if this is a good fit for you and your comfort level of risk. In my opinion, I feel there are two kinds of people that think two completely different directions about their finances. Neither school of thought is wrong and both schools seem to be created by a combination of their parents and or their spouse. The first I call the "Saver" The Saver is always approaching there finances cautiously and making calculated decisions to advert all possible risk. There is a variety of reasons people do this and in most cases, I believe this is wise and allows people to have peace of mind and safety for their family. The second I call the "Spender" often known for how careless they can be with their finances and put their focus in making money rather than saving it. This personality makes up both the poorest and the richest people in the world and of course some in between. I could talk about these two different kinds of people all day, but I want to stay on course with preparing for 2019. To identify the traits of the Saver they are typically only found in real estate when they have large amounts of capital to invest, either buying a house in all cash or usually, around 25% down. Their portfolio grows slowly and steadily. If this is you, focus on getting that capital this year so you can start in 2020. The Spender will bet on the market to increase and will put the bare minimum down to acquire properties in hopes that the market will continue its appreciation. In 2018 the Spenders made a lot of money, however, 10 years ago in 2008, the Savers were the ones who survived.

As you prepare for an incredible 2019 I want to give you the first steps for every investor gearing up. First, you need to have your capital in order, this list includes.

• Lending
  • Credit Score
  • Hard money options
  • Debt to income ratio
  • Source of funds (Cash, Co-signers, Private or Family investors)
  • Job history
• Purchase
  • Condo, Townhome, Single Family, or Multi-Family
  • Location
  • Strategy (Appreciation, Renovation, Wholesale)
  • Options (Contracts and terms)
  • Network (The best deals are always found offline)
• Resources
  • Banks
  • Mortgage Brokers
  • Real Estate Agents
  • County Records
  • Community pages

I am going to try to summarize this list the best I can in one paragraph. The first place I always recommend to start is to figure out what your buying power is and what your buying options are. A lot of people may either tell you no or they will not give you a high enough approval for your purchase. Until the market corrects itself and lending regulations get really strict again, I can pretty much promise you there is somebody who will say yes to lending you the amount you need it just depends on how much legwork you are willing to do to prove you have a good investment, which in some cases step two (Purchase) actually comes first, because you may have to present the individual purchase to the lenders or investors in certain cases when your capital is limited. Once that is done get started on your figuring out what you want to purchase. If you are really handy and have a fairly open schedule then go for a single family or multi-family home. If you are really busy and don't have time for repairs or don't want to do them and can't afford to hire them out then stick with condos and townhomes as they typically require very little maintenance. The third is your resources. This can make or break any deal instantly. By profession, I am a Real Estate Agent and I love it! Although, my three years of experience has taught me there are many real estate professionals that are unqualified to help people with their investments. Whether it be in lending or acquisition, make sure you find a competent and qualified lender and an agent that will always have your back. Those two should be able to open all the other doors to the other trades involved in your transaction such as inspectors, appraisers, escrow officers, attorneys, property managers etc. Once you got these three things done you are ready to make it happen. You will have questions along the way and obstacles aplenty, but I promise you in real estate investing the secret to getting ahead is getting started.