What kind of real estate investing should I do?
Well that depends on you. There are two kinds of real estate. Real estate as a business and as an investment.
A business buys and sells. Every month you go former to zero. You must start over. Real estate as an investment can create long term wealth. So you must look at your own personal situation to determine if you need business income to replace a current job or to live on or do you have capital to invest long term and you just want passive income. Most people I talk to want cash now then cash flow later once their business is up and running. My favorite model is the Filthy Riches model. Learn more at www.FilthyRiches.com.
How much money do I need to get started?
Thats depends on what you are going to do. You can wholesale by assigning contracts and start with only the deposit money. You assign the contract to earn your wholesale fee. There are also many other ways to close and fund a wholesale deal without using any of your own money. However, if you are going to fix and flip then you will need money to buy and rehab the property. If you are going to be a landlord then you will either need money or financing to fund your rentals.
How do I fund a property if I have no money?
It really depends on what you will do with the property, however there are many ways to fund and close on a deal when you have no money. Here are a few: Assignments, Options, Assigning beneficial interest in a trust, Selling shares of an LLC, private money, hard money, cash partners, credit partners, SDIRA accounts, credit cards, peer to peer lending sites to name a few. You can also apply for an un secured line of credit at www.GetRealEstateFunding.com.
Where should I invest?
That really depends on what kind of investing you want to do. For example, I have many successful students who are doing the Filthy Riches model buying cheap houses however, they live in a very expensive area such as parts of California. SO they invest long distance. I am a firm believer in going where the deals are.
Should I stay local?
That depends on how comfortable you are with investing long distance. In todays age with all of the technology and being able to find “boots on the ground” people to inspect properties virtually anywhere, in my opinion, there is no reason to have to stay local.
Can I invest using a tax advantage account?
Absolutely! All you need is a self directed custodian such as Equity Trust, Camaplan, Quest IRA or Kingdom Trust. They allow you to buy and sell real estate, notes and other non traditional investments in your tax advantage account.
How do I know a good deal when I see one?
Well in my opinion, you don’t typically find deals, you create them. However, having said that, you must learn to analyze a deal to determine the profit that will be made on the deal before making your offer. You analyze deals differently based on what you will do what them. You would not analyze a fix and flip or wholesale deal the same as you would a rental property. One is based on profit and the other is based on cash flow.
How can I just invest passively?
There are many ways to invest passively. You could be a landlord and have a property manager manage your properties. Although I do not like residential tenants. You could be a hard money lender. My favorite is to just buy notes. This way you have a long term cash flow while earning double digit returns all passively. I sell notes on seller financed properties from time to time. Send me an email to PassiveIncome@LarryGoins.com to find out more.
What is the best way to learn real estate investing?
With the internet there are many options to education in real estate investing. The first thing I would suggest is to see if there is a local investors group in your area. You can go to NationalREIA.com and each your state for a group. You can also look on MeetUp.com to see if there is a group in your area. If there isn’t then I would start one. We also have many free training videos and articles on our website. The next thing I would suggest is to find a mentor that can help you get your real estate business up and running. Someone who is already doing what you want to do and then get as close to them as you can, even if you have to buy your way in. If you want to learn more about working with my team and I visit www.LarrysInnerCircle.com.