When starting anything new, including real estate investing, there are simple ways that to learn the fundamentals. You’ll be able to go to the local library or bookstore, join the local real estate Investors Association (REIA), spend money on boot camps and educational seminars, or study online on your own.
Many people not sure how to get started, they don’t grasp with whom to work, they don’t know for sure what to buy or what strategy they’re going to use. What they have done is watched some “fix and flip” tv shows and decided they, too, want the success. However, to be successful you must have a plan. Start by writing down your goals and determining how you’re going achieve them.
A lot of newbie investors are tired of their J-O-B. they are ready to move on, quit their day job, and get into real estate investing full time. We understand that! but wait till your real estate business is generating income before you quit your W2 job. You’re acquiring assets that are going to be paid off by someone else, that are about to go up in value, and are going to create cash flow for you each and every month. It’s very difficult, however, to replace an entire year’s income from $200 per month rental cash flow alone. Real estate is an expensive business to be in.
Two main renovating mistakes: first – Grossly underestimating the cost of a rehab. Over time, you’ll be able to walk into a house and estimate repair prices. You’ll also learn neighborhoods, know exit strategies, and know your personal plan from the time you walk into a property. but this takes time to learn. Second – not sticking to a budget. maybe you start a property with a fairly accurate budget.
However, once you get into it, you become personally attached and, next issue you know, the planned laminate countertop becomes Corian. Or, what can be a laminate becomes hard-surface. You put in updated fixtures where you do not need to, brand new appliances where they aren’t needed. Little things start adding up to big dollars and, pretty soon, you’ve blown the budget.