An Introduction to Real Estate Investing



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Summary:
There are a great many books and web sites devoted to real estate
investing out there, but most of them concentrate on one specific area
of investing. As you perfect your technique and gain experience, the
amount of work needed to gain a lot of money will reduce, but it will
take effort and persistance to make it there.

If you're completely new to real estate investing then the only sort
of investing strategy you're likely aware of is rental properties.
Landlording has been around since there have been houses and people to
rent them to, and it will continue to be a wealth builder. Still, there are other
ways to make money from real estate investing out there.

The next most 'traditional' method is to buy a fixer-upper, fix it up,
and then sell it for a profit.
Article:
There are a great many logbook and web sites devoted to real estate
investing out there, but most of them concentrate on one specific area
of investing. It's often hard to find a general description of real
estate investing, one that lists the various real estate investing
strategies and how to get started. That's what this taunt with will set
out to do.

Before beginning, you must understand that real estate investing is
not a get rich quick scheme. Real estate investing can, and will,
make you wealthy, but it unequivocally won't happen overnight and it will
require work. As you perfect your technique and gain experience, the
amount of work needed to gain a lot of money will reduce, but it will
take effort and persistance to make it there.

If you're completely new to real estate investing then the only sort
of investing strategy you're likely percipient of is rental properties.
Landlording has been since there have been houses and people to
rent them to, and it will continue to be a wealth builder. In fact,
most of the 'no money down' real estate strategies you hear about
still include rentals as part of their plan. Still, there are other
ways to make money from real estate investing out there.

The next most 'traditional' method is to buy a fixer-upper, fix it up,
and then sell it for a profit. This is naturally referred to as
'rehabbing' and is a very good way to make a lot of money in a
relatively short period of time. Most rehabbers won't even look at a
property unless they can make at least $20,000 of profit, and this is
usually within 3-4 months time. Rehabbers tend to be experienced
investors with jobless money, or have partners who help provide any
extra cash required.

But if you're just starting out you likely won't have lockjaw to large
amounts of money. One way to get involved in this area of real estate
investing without needing any money at all is to 'flip' houses to
these rehabbers. What this entails is you going out and finding these
fixer-uppers, noting all the work required to fix the place up. You
then place a low offer in to the owner, taking into information the fix up
price and some well-developed in profit. Once you have the house under
contract you then flip it to a rehabber for a small fee. This can
result in several thousand dollars for you, without you having to
spend a dime. 'Flipping' properties can be a great way to start your
real estate investing career.

Another 'no money down' technique that's popular on the late night
infomercials is named 'lease optioning'. This is fundamentally a rent to
own strategy that allows you to control a property without ever taking
ownership of it. It's a slightly more complicated strategy that
warrents its own article, but it does bate you to make money in
several different ways, each without ever having to spend any of your
own money. If you're not put off by longer term investments then
lease options are definately worth more research.

There are other strategies that involve foreclosures and getting the
home owner to sign the deed over to you, but for now I'd suggest
learning more on every side flipping and lease options as entry-level real
estate investing strategies.

How do you find properties that would make good real estate
investments? Again, an entire column can be devoted to that, but
there are effect two ways: you go looking for them, or you get them
to come to you. The first way involves reading the newspaper
classifieds and scanning the Multiple Listing Service (MLS). This is
where having a great real estate reagent is a must - they can get you
more details on homes than you can view on the mls website, and can
often let you know of great deals in the past they even be born unmanned to
the general public.

Having home owners contact you means setting up an advertising
campaign. This can involve placing ads in the newspaper, placing
bandit signs at strategic locations nearby town, starting a direct
mail campaign, etc. There are many ways to let people know that
there's a new real estate investor in town, and it would be in your
best interest to try each of them to see which ones work best for you.

Whether you decide to go looking for deals, have them come to you, or
both, they key is to be persistant. Real estate investing is a
numbers game - most of the time you won't be able to make the deal
work, but every time you do it translates into thousands of dollars
for you. The more owners you talk to, the more deals you'll be able
to do, the more money you'll make.

I hope this denunciate gives you a bit of an idea of what the world of
real estate investing is like. There's a lot to learn out there, and
all of it is very interesting. Find the area that interests you the
most, then get out there and start talking to home owners. Don't be
discouraged if you're getting turned down a lot - just remember that
when it does pay off, it will pay off big!



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I have just finished counselling with a client who was depressed. She is a young mum and initially she was in a very low mood. She hadn't experienced talk therapy before but her friends were pushing her to do something about how miserable she felt.
We talked about her life: the husband that loves her, her 7 month old daughter who she finds difficult to enjoy, her house, her friends and her relatives. About session three, I was wondering where the depression was coming from - her circumstances seemed good, she was healthy and she had several close relationships.

Then we started to talk about when the depression had started - just after her daughter's birth. She mentioned in a 'give away comment', her mother had come to see her then for the first time in 2 years. Well apparently her mum and dad had separated when she was 13 years, had gone off with their own lovers and in the intervening 10 years, my client had seen them separately, irregularly.
Then we started to unfold her memories of being left "in the family home" with her elder sisters (18 and 21 years), being expected to get herself up every day and out to school, feeding herself from whatever food was available in the kitchen, with her sisters at home only when they weren't at work or with boy-friends.

Apparently some days she bunked off school and sat on a wall near the shopping precinct, watching people pass, knowing that no one cared what she did or where she went.
So here was the root of her depression: my client had given up a lively job in a busy office when her baby was due, she was now stuck in her house with a new child and her husband was working long hours to support the three of them - for much of her day, no one cared what she did or where she went.
My client actually broke into tears as she uttered this phrase - no one cared what she did or where she went.

It has taken another six sessions to tease out all her pain and to counter the thoughts that were feeding it - what had she done to be discarded by her mum and dad, how was she going to cope with the world without her parents to love her, and how could she find someone to care about her?
It was easy for my client to project these thoughts into her new daughter's life: what would prevent her from abandoning her daughter on a shopping trip, why couldn't she feel any love for her daughter or her husband, and would anyone care if she went away?

Happily we have now worked through my client's difficult teenage years. She has recognised that her mum and dad were poor parents - so besotted with their own affairs that they hoped the other was doing the parenting and not realising that neither was. She knows she can make her own parenting different - she can choose to stay married to her husband, she can choose to love and cherish her child (or children, later) and in caring for her family, she can enjoy how much they care for her. A tipping point in my client's recovery was when she noticed how much joy her daughter has seeing her after an absence of a couple of minutes. Another important factor was becoming aware that her husband was always glad to see her, to hold her and to cherish her.

So now the depression is lifted. I don't say that it is gone forever because I cannot tell what the future will bring to my client. However, for now, she knows how to manage and chase away those low feelings: to see how her daughter and husband love her.

So now my client's first question to me 'Why am I feeling depressed?' is answered by "No one cared what you did or where you went" and we have found the antidote - 'They do now".


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