Baby Steps For The Beginning Investor

As a new investor you will find tons of information on the internet, on TV, in your public library, at book stores and the list of sources can go on and on, but the best teacher is experience.
TCI has some of the best-experienced teachers around who provide their knowledge and time free of charge to you!
Some of the most active posters are:

commercialking

getgoing

nbhomes

NancyChadwick

bgrossnickle

JohnMerchant

TheShortSalePro

feltman

At times they may not agree with one another, but their value and what you can learn from them will help you become a more successful investor. Some may be short with you some may not but all donate their valuable time to you as a TCI member. So respect their time and comments. You have to get out and take a few steps to become a successful real estate investor.

One vary important step is to research your question on TCI before posting as this will teach you proper research techniques to become a successful investor.

Your next steps will be to dedicate time each day for investing in real estate.

Treat this as a job and your rate of success will grow.

Get a feel for your market, property prices, property sale prices for your market area by talking to realtors, brokers, researching the tax office and by picking up the real estate magazines.

Look for classified ads that have:

Desperate
VA
Assumable
Owner finance
Discounted

Just to name a few. This will give you a feel for the marketplace.

Drive through local neighborhoods focusing on Vacant, FSBO, & for rent properties. Take down the phone numbers and or address of each property.

Check with an office supply company or the Board of Realtors to acquire a local contract for purchase of real estate.

Invest in business cards and letterhead to let people know you are a professional investor.

You will want to pass out 1,000 business cards per week your first 30 days.

Prepare a contract or an agreement. Check figures and clauses. Be sure you have a couple of ‘out’ clauses such as ‘subject to partners’ approval’. Submit your offer to the homeowner and see what happens. The homeowner could ignore the offer, let the deadline expire or counter offer. In the event the homeowner does not respond to your contract put them in a database with a note to contact them again in 30, 60 or 90 days. Things do change over time!

Get accustomed to viewing property and take a clipboard, notepad, pen, and flashlight before going out to the property.

Evaluate the property and look for the opportunities. Could the property be assigned? Could you acquire the property through assumption? Could you structure the deal with limited money or no money down?

Examine your credit profile and increase your available credit.

Search out other investors and or money sources to finance or assign your deals to.

Talk to your banker let him or her know you are beginning to invest in real estate. Ask for timely information regarding interest rate changes, bank properties, areas to invest in the local market and potential investors they might know.

Inform friends, associates and who ever will talk with you that you are looking for properties, providing an incentive if necessary. "Offer a carrot." A finders fee for locating a deal, investor, or even a homebuyer.

Visit with real estate attorneys and title companies. Inquire about their fees, services and time it will close a deal. Ask about open title closes, assignments and trust purchases and how they handle them.

Go to the courthouse and research a property. It is not a scary place and you might be surprised how friendly it actually is. Start by researching your own property or a friend’s. The first time or two the clerks will help you in your research or in pointing you in the right direction. While you are there also check out the Tax record office. Inquire about the office that handles tax and mortgage information.

Be present at several foreclosure auctions just to learn the process.

Develop a database of buyers and spread the word among your contacts. You might consider passing out business cards, posting flyers or ads to acquire a buyers’ database.

Look at a minimum of 100 properties per month.

Set up a mailing campaign to:

1. Other Investors


2. Expired Listings


3. Homeowners facing foreclosure


4. Homeowners facing legal problems


5. Homeowners facing law suits


6. Homeowners behind on property tax


7. Probate announcements


8. Engagement announcements


9. And the list goes on