Real estate investing is a career that can take many directions. It can start out small and work its way up to the status of a Trump empire or it can even remain a hobby. The great thing about it is that it has many aspects and can suit nearly any personality type. If you are interested in real estate investing but don’t really know where to start here is a quick list of directions that you could take your empire.
- I am going to work from the beginning here and assume that you are just getting your start in the real estate investing world. In this case you probably won’t have too much capital to start out with. An excellent option in the situation is to start as a bird dog. This simply means that you get good at finding deals and bringing them to the attention of investors. For this you collect a commission. There is no special training or licensing requirement. All you need is some contacts and the willingness to get out there and learn.
- Property management is also a great place to start. Many real estate investors hate property management because it can be hard work and it can call at mid night or on Saturday. But this great thing is that you can start managing property for others and collect a monthly commission, usually 8 – 10% of the rental price. This doesn’t start out as much but when you get 10 properties renting for $1000 per monty you are looking at making $1000 per month and you are effectively handling the hard part of the real estate game. You are learning how to manage on the dime of other investors and you are passing along any cost to them. An added bonus is that you network with many real estate investors and often have access to deals before they even hit the market.
- Starting small, is another great way to get into the real estate investing market. Many fail to ever take action because the perceived cost of entry is so high. But the truth is that there are homes for sale in many areas of the country for less than $30,000. Saving or finding a family member to loan you the $6,000 down payment should not be that difficult. After that we are talking a payment of less than $300 per month on a ten year note and around $150 per month on a 30 year note. If this does not sound manageable to you then this may not be the business for you.
- Once you have found an in to the market you can take a real estate investing career in hundreds of different directions. You could specialize in development, urban renewal, trailer parks, flipping, 4 plexes, duplexes, college housing, housing for the elderly, vacation rentals, foreclosure, the list goes on and on. The truth of the matter is that there is someone making a lot of money in almost all areas of the real estate market.
Find a niche that interest you and start your real estate investing career. Keep the big picture in mind but realize that you will have to take many steps in order to reach you goals. Never stop learning about new aspects and opportunities in real estate investing and be prepared to take advantage of any opportunities that come your way.