Real estate investment information?

December 17th, 2009 | by David Mueller |

I’m 20 years old and I’m looking for sources of information for buying real estate properties and renting them out. I’ve read many books and purchased many programs on the subject, but am looking for the complete deal. With subjects such as insurance, property management companies, loans, etc… I need a really technical resource with not a lot of fluff. The real meat and potatoes of the business. Thanks for the help.
Where do you find a mentor?

You do not need a single resource. You need a team of resources. A good mortgage broker will be able to tell you what you need to know and what you will need in terms of money to buy your homes. A good Realtor will be able to help you to understand what to look for and expect from a rental home. Your Realtor may double as your Property Manager or you may want to use another company or even go it alone. If you choose the last option you will need good repairmen that you can trust. You will need an insurance agent who has good rates and customer service. You will need to learn the landlord and tenant laws of your area. Rentals can be a very profitable business if managed correctly, and if you have been doing all the research you say you have then you are well on your way to understanding that.

I can give you some basic info here about the Realtor side, and if you have any specific questions or need clarification on anything you can feel free to email me. But the basics are that you will need to put some money down, so start saving now. Probably about 20%. Also you need to understand the difference between looking for a home to live in and a home to rent out. You are looking for two completely different types of home. For a rental you are not looking for the "just remodeled, granite countertop & stainless appliances" homes. You need a sound structure that will be as low maintenance as you can find. Ugly is o.k. Research the market you want to rent in. What are homes selling for in that market? How much are they renting for? What are the property taxes? All of that will factor into how much profit you will make. You should also have a budget for vacancies and repairs. Plan for the worst and hope for the best.

Hope it helps,

Josh

  1. 2 Responses to “Real estate investment information?”

  2. By Randall Parker, MBA on Dec 17, 2009 | Reply

    Wow! I admire your ambition, I really do.

    You need to find someone who can personally work with you as a mentor, and who can help you on a one-on-one basis.

    I would avoid any of the programs that are being hawked at seminars or via email and the like. They are a waste of money. You can peruse the library or your favorite bookstore for books on real estate investing, but they will only provide broad brushstrokes over the basic how-to’s of the industry.

    If you follow that advice, I just saved you thousands of dollars. It wouldn’t hurt you to take some Real Estate classes. I’d recommend Principles of Real Estate (the first RE pre-licensing course) as a good start. Business Law classes at your local university would also be good.

    I’m not sure in what state you reside, but in some states you now must have a four-year degree to get a license, even as a RE agent, and definitely to become a real estate broker.

    Your question is a little bit overbroad, but I guess that you are either trying to get hold of some properties for long-term equity growth or you are trying to do fix-and-flip. Both have their own idiosyncracies, and you need to work with someone who has experience in the area(s) that you choose.

    I don’t know of any single complete source in book form that would help you. The best advice that I can offer is to find a mentor or partner that can work with you side-by-side to identify properties, establish a gameplan for each, and then execute.

    Good luck!
    References :
    Financial Planner, Realtor, Mortgage Originator, Insurance Broker/Life Agent. See profile for more.

  3. By Alabama Realtor on Dec 17, 2009 | Reply

    You do not need a single resource. You need a team of resources. A good mortgage broker will be able to tell you what you need to know and what you will need in terms of money to buy your homes. A good Realtor will be able to help you to understand what to look for and expect from a rental home. Your Realtor may double as your Property Manager or you may want to use another company or even go it alone. If you choose the last option you will need good repairmen that you can trust. You will need an insurance agent who has good rates and customer service. You will need to learn the landlord and tenant laws of your area. Rentals can be a very profitable business if managed correctly, and if you have been doing all the research you say you have then you are well on your way to understanding that.

    I can give you some basic info here about the Realtor side, and if you have any specific questions or need clarification on anything you can feel free to email me. But the basics are that you will need to put some money down, so start saving now. Probably about 20%. Also you need to understand the difference between looking for a home to live in and a home to rent out. You are looking for two completely different types of home. For a rental you are not looking for the "just remodeled, granite countertop & stainless appliances" homes. You need a sound structure that will be as low maintenance as you can find. Ugly is o.k. Research the market you want to rent in. What are homes selling for in that market? How much are they renting for? What are the property taxes? All of that will factor into how much profit you will make. You should also have a budget for vacancies and repairs. Plan for the worst and hope for the best.

    Hope it helps,

    Josh
    References :

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