Where and how do I start investing in real estate? That is probably your key question now. Depending on your real estate interests, there are many ways to begin, such as buying fixer-upper houses, investing with little or no cash, nothing down, lease-options, probates and bankruptcy properties, managing rental properties, and buying properties right to earn your first profit at the time of purchase.
If you feel you still need more information, there are many excellent recent investment books, such as Robert Griswold and Eric Tyson’s “Real Estate Investing for Dummies,” Jay P. DeCima’s “Start Small, Profit Big in Real Estate and Investing in Fixer-Uppers,” Steve Berge’s “Complete Guide to Investing in Undervalued Properties,” and Thomas Lucier’s “The Pre-Foreclosure Property Investor’s Kit.”
Purchase Bob Bruss reports online.
But please don’t develop “the paralysis of analysis.” That disease afflicts many beginning real estate investors who over-study but delay buying their first property. If you wait for optimum conditions, such as low mortgage interest rates, abundant supply of properties for sale with “profit potential,” low purchase prices and rapid market-value appreciation rates, that will never happen.
After you buy that first investment property, such as your home, you will discover you either love or hate this real estate investment business. Until you purchase your first investment property, you’ll never know for sure if you are cut out to earn big real estate investment profits.
EXAMPLE: When my dad began his dental practice in Minneapolis many years ago, he bought a small building; however, he had constant problems with the tenants not paying their rent on time, unexpected repair costs, and vacancies. He soon discovered he didn’t like being a landlord and preferred concentrating on his very successful dental practice so he wisely sold that property before its management overwhelmed him. However, until he and mom owned that investment property, they never knew for sure if they could profit from real estate. Interestingly, in later years, mom and dad were only too happy to invest in my property acquisitions if I would take care of the property management while they got the tax deductions with no work! I never charged them any property management fee, in case you were wondering.
When I used to speak to local real estate investment clubs (which I highly recommend you join as a new investor), I would see the same attendees time after time. That’s great! However, when I asked them if they bought their first property yet, they always said they were still checking out the opportunities. That’s nonsense! As Mike Littman often says, “You don’t have to get it right; just get it going!” Buy your first investment property, even it takes six months to get a purchase offer accepted by a seller. Learn by doing.
Just as no home you ever buy will be your perfect “dream home” (although you might come close!), no investment property is ever perfect. Even brand-new houses have their flaws. Every day, thousands of real estate investors are earning big profits — now it’s your turn!
(For more information on Bob Bruss publications, visit his
Real Estate Center).
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