Deciding to look at real-estate for investment in your financial future usually brings on numerous questions especially for beginners.
If you listen to some real-estate experts, they will tell you that a good way to getting started is by doing what is known as birddogging - this is where you run around looking for dilapidated properties which you pass onto an experienced developer who buys it and gives you commission, called a referral or a birddog fee.
This option may be a good way to start gaining some experience and gain knowledge, but its ability to make you lots of money is quite limited as the developer is tho one who makes the real money.
The next step most people take is known as wholesaling - similar to birddogging, but taking it a bit further - it involves finding the abandoned or rundown houses but actually negotiating and buying the property at a wholesale' price and then finding an investor to turn or 'flip' the property, making a tidy little profit as part of the deal.
A great many books and courses are available on this process, and many a good investor had their beginnings like this, but there are pitfalls that need to be avoided, especially for the inexperienced punter. The learning curve is often long and slow and money need to be risked - as will all risks, as the term implies there is the possibility of losing money.
Short sales are another way for beginners to break into the property ladder game. This involves dealing directly with banks and financial institutions regarding a property that is in or about to be in foreclosure. This process of 'short sales' can lead to buying properties at a greatly undervalued price but the process of negotiation is quite complicated and the details are long - be prepared to do your homework and play the waiting game.
These above mentioned methods are only 3 of many many ways of getting into the investment property game. we will be looking at some of the other methods in upcoming articles so be sure to look out for these.
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Before deciding to look at investment real estate you need to consider a few things. Here are some advices to take into account if you are a beginner in this matter.
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