At some point, I will show you how many of these techniques work in real situations. What will be most important for you now is to select the two or three areas of current interest and then focus on those areas; at least while you’re just getting started. The overall areas (not listed in any order of importance) include:
42 Ways To Invest In Real Estate
Rehabbing fixer-uppers or junkers and then selling as a pretty property
Flipping fixers to a rehabber for a modest mark-up
Buying pretty property at below retail market prices
Optioning property for a period of time during which you find a buyer
Leasing a property with the option to buy at a later date
Investing in Tax Liens
Buying Tax Deeds
Buying (and selling) discounted paper (mortgages, Trust Deeds)
Negotiating short sales with lenders
No money down (at least not your own money)
FSBOs (For Sale By Owner)
Getting the owner to just give you the deed (title) to the property
1031 Tax-deferred exchanges
Bank REOs (real estate owned) – non-performing assets
NODs (Notice of Default) (Preforeclosures)
Foreclosures
Prefabricated modular structures
Storage rentals
Shopping centers
Industrial buildings
Raw land and land development
Real Estate Investment Trusts (REITs)
Mutual Funds specializing in real estate investments
Real Estate Limited Partnerships (RELPs)
Section 8 HUD- and VA financed properties
Resort Condos
Second- and vacation houses
Condos as everyday residences
Buying your own island, castle, any unusual or exotic property
Hotels and Motels – the real estate; not the business itself
Specific-use real estate such as gas stations, car washes, restaurants
Office buildings
Real estate auctions
Time shares
House exchanges
Condo conversions
Billboards
Parking lots
Foreign Real Estate (Outside the USA)
Develop “Infill” lots (Vacant lots in developed neighborhoods)
Lease Post Office facility to U.S. Government (Well…maybe not anymore)
Bed and Breakfast
I realize you probably don’t completely understand what the above list represents but by the time I finish with you – you will know how each works. The reason I caution you to pick only one (2 or 3 maximum) for starters is that you need to learn a couple of areas thoroughly before you expand into other areas.
Active vs Passive InvestingAdditionally, some of the above require “active” participation by you while others are considered “passive” income generators (PIGs) requiring almost none of your time. You’ll need to decide how much time you’re willing to devote when you first start out.
Ultimately, you’ll want to become familiar with all of the above because you won’t want to pass-up profit opportunities as they present themselves to you in the future.
How To Start Investing In Real EstateFinally, start at the bottom; the beginning; the first level. Regardless of how much money you now have, if you have no real estate experience, start small. Yes, many beginners have been lucky with large projects in hot markets, but that’s not how to push your luck.
If you don’t bite-off more than you can comfortably chew, you won’t be panicked when something goes wrong. If nothing can go wrong, it will go wrong and at the worst possible moment, so be forewarned.
One final caveat to start: Do NOT tell your friends or co-workers what you are planning to do! They will always tell you “it can’t be done.” You don’t need this kind of grief. Just do it first and then let them observe that it is possible.
Author Note: This is just the beginning, I wrote a book, “Pssst – Wanna Be a Real Estate Millionaire?” to familiarize investors like you with all of the techniques you can use to purchase- or make money in real estate. I plan on sharing it freely and take you step-by-step through as many transactions as possible so that you will know what to expect in each instance.
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