Right now there is almost a perfect storm for real estate investors. If you are thinking of getting into real estate investing and becoming a landlord there is no better time than now. Real estate is currently on sale and mortgage rates are at the lowest points anyone has ever seen! Even better, rents are on the rise because more and more people can’t purchase a home and are there fore forced to rent.
If you are thinking about becoming a real estate investor, I can’t emphasize enough how good the conditions are right now.
If you have been thinking about it and you want to jump off the fence and get into real estate investing here is what I would do.
- Do your homework. Learn about real estate investing. What are the major expenses and how will you handle them. Join a local REIA for expert local advice. Get this book for some real expert advice.
- Pick a place to farm as I explain here. You need to start out in someplace you know and someplace you can get to rather easily. Find a place and get to know it like the back of your hand. Learn what properties rent for and what they are selling for so when a deal comes along you can run your numbers quickly and grab it.
- Get your money lined up. If you have your own funds, great! If not, you should go and talk to a mortgage broker about setting up some investor loans. If you have good credit and income, it can be done.
- Look at buying foreclosures. Foreclosures are everywhere right now and can really be priced right because banks can’t get rid of them fast enough. There were over 4,000 in my area just this year alone! Plus, with a foreclosure there are many other advantages that Richard, Jo and I talked about here.
- Once you find a deal, jump on it! You have done your homework, plowed your farm and have some money lined up. These conditions will not last forever.
Trust me, in a few years you will be wishing you had bought more real estate. Like my friend Richard says “Don’t wait to buy real estate, buy real estate and wait.” That’s great advice!
