How to invest in realestate (Beginner Tips)

Beautiful Home in Cody Wyoming

Beautiful Home in Cody Wyoming

In today’s post I would like to continue the discussion on real estate investing. Like with any profession, you have to decide in what area of real estate investing you would like to get into. This post will give you the basics on planning and preparation towards your goal in a real estate investing business. In future posts we will get into specialty areas.

I would like to go over a list of things you should do in preparation for your investing once you have decided what area you plan to go into. Lets say that you plan to go into “WHOLE SALE INVESTING OF REAL ESTATE,” here is a list of things you should be doing and they are:

Things To Do TODAY

DAY ONE

STEP 1: Even if you will be using techniques that require no credit, get your credit up to par anyway. Read our blog post on credit repair. This will open many more doors of opportunity for you. Order a copy of your Credit Report and follow the instructions in the Credit repair blog post.

STEP 2: Design and order your business cards. Keep them simple and to the point, such as “John Doe, Real Estate Investor 555-1212”. A nice little image, such as a house, won’t hurt.

STEP 3: Write down your objectives – be both SPECIFIC and REALISTIC. Something like, “By February 1st I will have found 4 properties that fit my target, and will have made proposals on all four. By March 1st I will have an accepted offer on at least one of these properties, and will have begun working the technique, etc., etc., etc.

STEP 4: Write down the addresses of every Realtor in your area. The reason for this is because you will be visiting each one.

STEP 5: Type up the criterion for your target property, such as Vacant or rental 3 bedroom minimum, blue collar neighborhood, in need of repairs (nonstructural), under $60,000 or something like that depending on what city you live in.

Make as many copies as there are Realtors on your list – you will be giving each realtor a copy. Make sure your name, address and phone number are included on these “target sheets”, so Realtors can call you.

STEP 6: Look through the real estate ads. Try to pick out those that meet your target. Jot down the number of the Realtor or seller. You will be calling about these.

STEP 7: Call on the properties you just listed. Down load an analysis form from the internet. You will use the analysis form to determine if the property conforms to your needs. If so, get an appointment to see the property. Keep all appointments in an appointment book.

DAY TWO

STEP 1: Visit the Realtors. Give them your card (if you have them) and a copy of your target. Explain that you are an investor. Do not tell them what you plan on doing (Example: Flipping and such).

STEP 2: If you have made appointments to view properties, keep these appointments. Bring a yellow Legal pad with you, and jot down any info you get from the seller. Make note of every defect you can find in the property. If you see something you would like to be included in the sale (lawnmower, chandelier etc.) note this, too. Keep your mouth closed and your eyes and ears open. Do not show emotion; do not say anything except noncommittal conversation, but be smiling and friendly. Try to find out as much as you can about the seller, his reason for selling, and what his needs are. When done, thank the seller/Realtor and tell them you will be in touch.

STEP 3: The properties you have visited: tour the neighborhood. Determine if there is growth potential, or if it is declining. If on the decline, discard that property as a possibility. Note your uptake of the area on the Legal pad. Note, too, what you feel is the market value of the AVERAGE home in that neighborhood.

STEP 4: At home, undisturbed, use the information you have gathered to complete the analysis form. If everything looks promising, begin work on a tentative offer, using what you have learned, and according to the techniques. Follow through on every offer.

DAY THREE

(Assuming you have no offers yet to make or other appointments.)

STEP 1: Choose a neighborhood, and cruise through it, thoroughly. Even if you do not find any properties, take notes on the neighborhood: is it deteriorating? What is the estimated value of the average home? This info could prove useful later, if a property does become available.

STEP 2: Take notes on every property you see that fits your target. If vacant, do not worry if you see no “for sale” sign – jot down the address anyway.

STEP 3: If you found properties that did not have a for sale sign but looked vacant, go to the local Tax Assessors office. Use the tax records and plat maps to gather as much info as possible on the property and the location of the owner.

STEP 4: At home, contact the owners of the vacant properties. Ask if they are considering selling. If yes, get an appointment to see them. If no, make a note for future reference – they may change their mind – and leave your name and number with them.

STEP 5: On ALL properties found that day, begin an analysis form for each. If a property had a for sale sign, call the number, ask the asking price, get as much info for the analysis form as possible. Then, set an appointment to see them.

STEP 6: Go over everything you learned that day, and all analysis forms. Make a notation on the ones that appear to be the best possibilities.

DAY FOUR

From here on out you should be continuing to do the things you have been doing to date. Cruise neighborhoods. View and inspect properties. Prepare analysis forms. Make offers.

Once an offer is accepted, your routine will change somewhat. Concentrate on following through on that transaction. Any spare time should be devoted to finding more properties, and planning EXACTLY what you must do, and when, to complete the transaction you are currently involved in. Be prepared for any task that arises from it. Scout for the materials you will need.

You see, Nothing happens by accident. You must plan carefully if you plan to be successful. I hope this helps you as it has for me.

I will continue to share more in future posts. Until then, God Bless.

I.A.A.M.

  • Rachel Cruz

    Thanks for the great post. I plan to apply this information very soon.