| Sure you would have heard several rags to riches | | | | buying new or fully refurbished assets unless they |
| tales of self-made real estate millionaires. Proponents | | | | are at a prime location. This is because such |
| assert that real estate not only appreciates in value | | | | properties don't have much margin, as the upside has |
| but can also be a source of monthly income. They | | | | already been taken by the current owner. It's best |
| add that you could easily work on "fixer-uppers" on | | | | to purchase property during its initial phase of |
| weekends and the tax benefits are quite significant | | | | development, since the price is quite reasonable at |
| as well. But if everything is so hunky-dory, why don't | | | | that time. |
| more people step into this seemingly lucrative field? | | | | • Invest in real estate that is not remote. |
| The answer is simple - people are confused on | | | | Look for property within a couple of hours drive |
| where to begin. This article elucidates any confusion | | | | from your home or office. This way you can easily |
| and provides the following start-up tips related to real | | | | keep a check on your assets. You may widen your |
| estate investing for beginners. | | | | net when you have a few managers, who can take |
| • Have your real estate team ready before | | | | care of remote properties, at your disposal. |
| you begin serious property search. You must have a | | | | • Don't go overboard if you bag a profitable |
| team comprising of an efficient "bird-dog" (person | | | | deal at the outset. One of the most valuable tips on |
| who searches for profitable assets), tax advisor, | | | | real estate investing for beginners is that real estate |
| lawyer, and a loan officer. A team would help | | | | investment is not a walk in the park. A lone profitable |
| expedite the process of bagging an asset, which is | | | | deal does not guarantee another in succession. Real |
| crucial if you wish to stay ahead of your | | | | estate is all about astute investments and feeling the |
| contemporaries. | | | | pulse of the market. It is advised that beginners |
| • Don't invest too much too early. Work on | | | | maintain a gradual progress rate, without being over |
| residential properties initially, as that does not involve | | | | enthusiastic. Once they are experienced enough, they |
| much funds and experience. Once you have | | | | can afford to employ a few unconventional tactics. |
| mastered such assets, you may move on to | | | | As we come to the conclusion of our primer on real |
| commercial properties and large apartments, which | | | | estate investing for beginners, the tips outlined above |
| offer greater returns. | | | | may seem rudimentary to some. But the fact is that |
| • Location of the asset is pivotal. Another | | | | real estate investment is not for everyone. Some |
| tip on real estate investing for beginners is not to | | | | people just can't deal with distressed homeowners, |
| disregard the location of the asset that you plan to | | | | fixing shabby houses, or a sudden slump in the |
| purchase. Owning real estate in a developing area, | | | | market. Therefore, it is advised that wannabe |
| with new and renovated properties, enhances your | | | | investors have a clear grasp of what real estate is all |
| chance of accomplishing significant returns. | | | | about, and be sure that they can handle the |
| • Avoid purchasing new or fully renovated | | | | occasional hiccups in the market. |
| properties. As a beginner, you should usually avoid | | | | Copyright © 2006 Joel Teo. All rights reserved. |