For the New Invstor

Many times I am asked about real estate investing. What tips can I give to one as they start their career.

Some questions I always ask, "What are your goals", "What are you trying to achieve", "Are you financing or paying cash", "What is your comfort level". These questions may seem simple but for many it makes them think.

So what are your goals? Are you looking to hold, grow a portfolio, to turn the property. Believe it or not some investors think that they want to flip a house in reality they are wanting turnkey.

What are you looking for?... a retirement, to pay for your childrens tuition, for financial freedom? How did you hear about this & why are you interested in this?

Are you paying cash or finance? This depends obviously on your income, however, some people have $25,000.00 in a savings account & want to take that buy 2 - 3 houses using this as a down payment & finance the remainder. While some are looking at this as their total investment. You need to make the decision up front cash or finance. While I suggest investors start slow, some feel they can jump into this with both feet.

What are your comfort level? This is a huge question. Are you in a position to lose this money? Real Estate, though a more secure way to invest does have risk.

Now, let's look a little deeper & the basics.

Real Estate Investing is a great way to earn income. There are great sites out there with a bunch of opinions. Throw that out the window though. Do your own homework. It is fine to ask questions, but remember that is one person opinion.

What I suggest is the following:

Search the internet on LinkedIn, Bigger Pockets, ask your friends, do google searches. You will find these huge name people who will suggest you go to a "Seminar" & they will sell you on Education. These groups they serve a purpose, they do hold you "Accountable". When you look at what their courses offer, it is close to what you would pay for college. Now dig a little deeper & find a turn-key investment company...check out their website, look & see if you can find employees of that investment company on the internet & reach out to them. Ask them questions, get their opinions & see what they have to say. See if they are willing to talk to you & answer your questions. If that employee will take the time then they are passionate about what they are doing & not out for just the sale.

When you do your own due diligence, you may find a variety of opinions of a certain part of area of the city. Some people say don't invest because the crime rate might be slightly higher but does the number make sense?

Many investors are buying sight unseen. I have worked with investors purchase their house across the US & in foreign countries. However the one thing I try to do is get them all the information they request, assist them on doing their due diligence & to be honest.

There has to be a little faith in yourself if you are doing this. If you allow others to sway you not to buy the house you like, the house that the numbers make sense, then maybe you should rethink this.

This again goes back to question 1 & 2, what are you goals & what are you trying to achieve?

As with any investment, it is a huge investment. Don't let anyone tell you it isn't but turnkey investment is a great way to make money.

My suggestions for the first time investor:

1) Determine your goals

2) Do your homework

3) Find a person you feel you can trust

4) Take your time

5) Listen to your gut feelings

6) Do the numbers make sense