The beginner investor usually considers investing after their basic needs are met.
The most important is:
A place to live! - Your Home.
Which can be an investment home.
Investor real estate is what Jason had in mind for his FIRST home! See his story on how he did it - click the link- Jason's real estate success story
When you buy a house for YOUR home...
The process of buying the house is the basic training of investor real estate.
Then buying your first investor real estate property, takes on additional planning!
Check out Marla's FIRST Fixer Upper and the planning she did before she bought it. She is the perfect example of starting out right as a beginner investor
Now, let's back up for second and review the planning before you invest in real estate.
The Beginner Investor has a lot to choose from:
Consider talking with a Financial Planner - that's very important for...
Protect yourself and your family first before putting money to risk in investments.
Remember what is said about the risk of investments,
On the other hand, "nothing ventured, nothing gained".
Other considerations for the beginner investor:
Here's more information about insurance on this site Remodeling Contractor Insurance info.
Long ago, as a beginner investor, I invested in what's called paper investments.
I deposited money – I get a piece of paper...
Mutual funds, 401k's, stocks, annuities, and savings bonds to me "Blue Sky" investments.
Blue-Sky meaning it's out there (some where unknown), in the form of a piece of paper. I didn't get to touch my investment, be a part of it,
act on it to make it better,
I put my money in control of strangers I've never met!
Once per month or annually I'd get a statement showing it either increased in value or decreased in value.
I had 3 choices: Add to it, keep it, or cancel it.
I chose real estate investing because I'm In Control of the Properties I own!
I'm investing in myself and my home remodeling skills to improve my properties, and you can too!
Working on properties I own made the most sense as a beginner investor and more than thirty years later, I continue to enjoy the benefits of do it yourself home remodeling for profit.
Learn about Investor Marketing to find out "Who" you're going to be buying from, selling, and renting to.
And a big advantage is:
You can borrow money to buy investor real estate - that's called leverage. Banks do not lend money to invest in paper investments - to risky.
Make Your Plan and Build Your Team
A "Business Plan" or "Life Plan" is in order to develop a success strategy.
And the people who can help you are Professional Service Providers, easily found in your own town.
They become your Team, and You're The Team Leader!
If you want Success! Plan for it!
"Plan Your Work and Work Your Plan"
Work Your Plan Because rehabbing Is Not a Race!
Make a plan (you can change it as you go)...
Most importantly... Surround Yourself with Talent!
Hire experts in their field to work for you and build relationships with them.
Professional service providers are not employees - that's a good thing.
You hire them when you need them on a fee-for-service provided, when you need them.
As you grow, you will need them often.
Learn more about the real estate marketing system and how valuable a Licensed Real Estate Professional can be to you.
Or go directly to the Realtor® referral center and have a Licensed Real Estate Professional contact you.
A Quick Repeat - - -
- It's your PLAN!
- You're the LEADER!
- Professional Service Providers become part of your TEAM.
For example, a CPA or Accountant should become part of your team...
Part of your plan as a beginner investor should include Real Estate Bookkeeping!
So, as a beginner investor,Plan for it, act on it, and the odds become in your favor.
Step 1 - Make your plan with a "Written Business Plan"
Step 2 - Build your Team
Step 3 - Take Action... Implement your plan.
Taking ACTION is the ultimate Key To Success!
Of course you already knew that.
Back to Investor Real Estate
As I mentioned above, your Home, if it's a house, condo, or a property you own...
Real estate has several advantages over many other investments.
Not only does a home have investment qualities...
It fills the basic need of "Shelter"!
Side Note: The three primary and basic Needs people require are:
That leads to some basic elements of business...
- SUPPLY AND DEMAND
Homes fit perfectly into the business model!
It's a "Primary Need" and is always "In Demand".
That's why Real Estate Investors and Rehabbers are in a class of their own!
There are Clubs and Associations for investor real estate everywhere!
Do a search for National REIA to find a real estate investor club near you to get involved if you like.
I hope I covered enough to show how a beginner investor, may become real estate investors of sorts, just by buying a home.
So how do you make money with your home?
MAKE IMPROVEMENTS! Paint goes a long way to making a property look new again. Actually,
- Carpet and Flooring
- Landscaping (curb appeal)
Are the easiest and basic improvements to improve the value of a home.
I think it would be safe to say, many home owners enjoy a little painting, yard work, and buying new carpet. Working with your hands and getting a little dirty can be fun! If you're anything like me, I love working on my home!
Selling your home (after improvements) every 2-years, for a tax free profit (for as long as the tax code permits) is the simplest way to profit before getting into multiple properties.
Check with your accountant or CPA on how to profit from selling your home every 2-years.
The most exciting thing about real estate is it's something you can...
- Physically own,
- and Smell (hopefully like down-home-cooking)
You can work on it to improve it's appearance (and smell) to increase the value and sale price!
I should add that diversification of investments is smart. Talk to your financial planner or talk with your Banker for more info.
However, since I'm partial to investor real estate, most of the topics on this site are about Realestate Investors and Rehabbers.
So if your a beginner investor or first time investor and like the idea of working with homes or apartments, and or multi-unit or commercial properties, and have any questions...
you can click here to contact Joe or go back to the Home Page and get a better idea what a real estate rehabber / investor does, and how we enjoy the Lifestyle
Where Did I Get The Courage?
It's only a game! Like the game of Chess.
I used to take life way too seriously. It's just a phase I think.
"Worry and Wonder - made me Wander" quoted from Joe Trometer 2003.
Read a few personal development books to find out more about you and learn how to enjoy life if you’re not there already, I read a few books on the subject.
We're not born with the knowledge, yet the knowledge is plentiful. There are many beginner investor books as well...
Long story short, "It's only a game, and I choose to play".
You know, when your playing a game, it's fun!
We win some and loose some,
The name of the game is to,
Win more than we loose.
It's your move...
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