The one-stop guide towards Real Estate Investment

A lot has been written on real-estate investment, but many assume basic knowledge and most don't focus on all aspects of real-estate investing. On the other hand, this article is going to help you understand the fundamentals of investing in real-estate, from what it is to the strategies you need to maximize your bottom line. Once you are done with this article, you would have a basic understanding of real-estate investment.


Contrary to late night infomercials, real-estate investment is not easy, and unless you’re very lucky you won't be walking away with wads of money anytime soon. You would even lose money sometimes, but that's okay, and once you understand the necessary strategies, the highs and lows of the market and once you gain the necessary experience, you'll get better at it.


To the outsider, the real-estate investment landscape begins and ends at property rental, but the truth is that there are opportunities much bigger, and much more lucrative than landlording.


Sure, renting properties is a surefire way of getting money, and while it is extremely popular and reliable, there are plenty of other opportunities to make money in real-estate. These opportunities may carry risk, but can be more lucrative. Even if you are just looking to get into property rental, it doesn't hurt to get to know the other ways you can invest in real-estate.


The other go-to method for real-estate investment is house flipping. Basically you buy a poorly maintained house for a low-price, spend money to fix it and sell it for a much higher price, getting a nice profit. The key thing about flipping houses is that it is an opportunity to make lots of money quickly. To get an idea of the money up for grabs: Most experienced flippers don't even consider a property if there isn't a possibility of making at least $20,000 within 3-4 months. However, to flip houses, you need money and some experience to maximize your profits.  More often than not, when you are just dipping into the world of real-estate investment, you either don't have such amounts of money, or you are not comfortable shelling out so much so early in the game.


Herein you can use a little trick to flip houses without spending anything. What you need to do is to approach the owner of such a house with a low price, noting the amount required to flip the house and the profit you want to make. Then, factoring in all these, you flip the house to the flipper (also known as a rehabber), whilst collecting a small fee. In this way, you get to make thousands without spending so much as a dime. You can get started in real estate investment in this way.


There's another option for you if you don't want to put any money into real-estate. It is called 'lease optioning', and understanding it requires in-depth strategies that are out of the scope of this article. In a nutshell, it is all about acting as an intermediary and controlling a property while not actually owning it. While it is a bit tricky, if you do get the gist of it, you stand to make money without actually spending anything. That's not all there is to it. There are several other strategies to follow in real-estate investment, but in my opinion you should focus on flipping and leasing properties to avoid getting overwhelmed. Only when you get a hang of it should you consider looking into other strategies. Now the big question in your mind is probably about finding properties that can net you good profits. This is a skill that can only be honed with time and experience. However, the discovery part is easy: You can view listings on Newspapers and on the Multiple Listing Service. While having an agent is optional, they can certainly help a lot in getting details about a house, catching a hold of great deals before others and knowing which properties would be good investments.


 You can also have it the other way: Make home owners contact you. This involves more work in the beginning, because you have to set up promotional channels and use techniques like newspaper advertising, mail advertising, banner advertising, etc. for buyers to know that you are a real-estate investor, and that you mean business. Either way, it could take a bit of time for you to land your first deal, but more often than not you would make quite a bit of money even out of that first deal. With more time and effort comes more experience and with more experience, you get more lucrative deals.


 While an article doesn't hold a candle to talking personally to an expert when it comes to the depth of the information covered, I certainly hope you get the basics of real-estate investment, and that you are ready for your first steps into real-estate investment. Of course, we only covered the basics, the rest is for you to learn, but nothing works better than just getting out there and interacting with home-owners. Sure, in the beginning you may be turned down a lot, but keep trying and remember: A deal won't close the first, second or even the third time, but when it closes, you'll be walking away with lots of money.