When it comes to real estate investing, there are many successful individuals and many skeptical people as well. One of the main issues always seems to be with the word “but.” “I would love to invest in real estate, but…” And then the person puts up roadblocks. “I don’t have enough capital” and “I’m not a handyman” are two of the common excuses. However, where there’s a will, there’s a way. Like anything else in life, if you follow proven steps, you too can become a real estate investor. Here are three steps you should consider.
Yes, it’s true that first-time investors with no credit history might encounter some problems when acquiring a loan in order to invest in real estate. However, they often can go the private-loan route without too much difficulty. According to Do Hard Money, interest rates are a little higher on private loans, but not payday-loan high. Interest rates will typically top out at around 15 percent for first-time investors with no credit history, which many consider to be a manageable interest rate.
Do Your Best to Avoid a Large Down Payment
Look for listings that say things like “motivated seller”. That often means that they will allow you to purchase the property with little or no down payment at all. This means that your wallet will take less of a hit. Moreover, purchasing a property in this manner is a great way to get started with a “fix and flip” opportunity. You basically want to buy a house that has a lower price compared to the other houses in the neighborhood, and then fix it yourself for a huge profit. According to Brian Tracy, it’s important to remember that it all starts with negotiating a small or nonexistent down payment.
Educate Yourself As Much As Possible
According to Dough Roller, one important key to being successful in real estate is to be as educated as possible. When it comes to real estate investing, there are a lot of hidden costs that you will have to consider. Closing costs, utility costs, mortgage and loan interest costs, property taxes, you name it, investment expenses exist. However, the best way to be aware of these is to learn from those who are more experienced.
When it comes to real estate investing, persistence is the way to the payoff. Get your feet wet and don’t give up and you will definitely find yourself a nice nest egg.
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