Augie 
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I often hear statements like these from new real estate investors:
So, I’ve read a couple of real estate investing books, I’ve read this real estate investing guide, and I have $100 in my pocket. I don’t have a real estate investing team. I’ve never spoken to a seller. I don’t have a buyer’s list. I don’t have hard-money lenders. I don’t have business cards. I don’t have an LLC. I don’t have experience. How can I get started and what do I do first?”
Do these sound like your questions? Many times a new real estate investor gets stuck when they try to cross the line from theory to practice. It sounds like what is needed is a dose of practical advice.
Go to a Real Estate Investor’s Meeting
The fist thing I would recommend is that you join (or attend) your local Real Estate Investor Association or club. The fee is usually around $100, and sometimes you don’t need to be a member to attend classes. Members often can attend unlimited events for free and non-members often have to pay a small fee. If you’re not sure if the club is for you, attend a meeting as a non-member.
These clubs are where you’ll find investors who are looking for great deals. Get their cards and find out what they are looking to buy, how quickly they can close and whether they have ready cash or work with a lender. If they can close in ten days or less, that’s good. If they have their own cash, that’s even better. If they use a lender, get the lender’s name so you can confirm they are for real.
Inevitably, investors at the club will ask you what you do. You should be honest and say something like. “Hi, my name is Augie. I’m new to real estate investing, but am eager to learn more. I’m attending today’s meeting to get a better understanding of who is investing in our community.” You should follow this up with questions that will help you to understand how you can convert this acquaintance into a contact.
Remember to ask for a business card. Don’t worry about having your own business card, but if you really want some, I would suggest buying some from 123-Print. You can get a basic white set of cards for less than $5. Basic is better. You only really need your name and contact information. Don’t worry about a company name yet. You are the company. Something like the image to the left should be fine.
There are many real estate investing clubs throughout the country. In order to find clubs that operate within your area, check out:
- Larry Goin’s Real Estate Investor Association & Club Directory
- Real Estate Investment Club Directory of REI Clubs Nationwide
- Bigger Pockets Real Estate Investment Clubs Directory
So there you go. Now started building your contacts!
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Real estate can be very profiting channel to earn money if we know the right way. Many listen to false news and fall prey to scams or wrongly invest in slow developing or depreciate properties. A proper study with a lot of research needed before we could do something big like that.
You are correct that getting involved in Real Estate Investing without proper knowledge can be dangerous and one can get in over their head quickly.
The best thing to do when first getting started is to find a mentor. This is why joining your local Real Estate Investor’s group is important. Get to know as many people as you can. You’ll find out who the bad apples are soon enough and also identify your best contacts and mentors.
I think reading books on real estate are a good way to get to know investing in real estate but they will only take you so far. I think they are good with buying home tactics. I think looking at the trend in the market is important if you want to make money for example, I discuss predicting the stock market http://autoinsurance5.com/stock-market-prediction/ but its the same with real estate.
Mark-
Looking for appreciation in real estate value is important, but only important to the extent that your investment strategy relies on it. In this market, speculative investing is a very dangerous game. Buying low is always a good practice. Adding value through renovation and rehabilitation can also create equity and profits. While trends may be indicative of future results, many unanticipated events can befoul virtually any analysis. Who could have predicted the current economic crises when there were so many contributing factors. You have to be careful not to speculate on house values when evaluating these trends.
The home value is important for those who wish to flip a house or only want to hold on to it for a very short period of time. If, however, your exit strategy is to buy and hold, the initial value is far less important, so long as you can cash flow the property. My parents bought a new home many years ago for $10,000 and 15 years later it was worth 10 times what they paid for it. In 1989 I purchased a home in a great neighborhood and was lucky to sell it 7 years later for my original purchase price.
I can tell you with confidence that I’d buy your house right now for whatever you think it’s worth, plus 1 million dollars. The question then is: what are the terms? What are the local rents in your area for a home like yours? Can I pay you $100 a month until paid? That may be a great deal, regardless of actual value.
This is why an investor needs to know multiple techniques for creating wealth through real estate. It affords you the greatest flexibility for financing and engineering deals that work.