Still More Thoughts About real Estate Investing for Beginners

Thoughts About Real Estate Investing for Beginners - Part 3

You have probably noticed from previous posts that there are a myriad of ways to get involved in real estate. Different methods require different skill sets. As a beginner you need to identify what method best suits your skill set as well as your particular interests.

In this post I'm going to continue to highlight some more methods that a real estate investor might use.

Let's get started. Tax lien certificates are instruments that are sold by county property tax authorities. Not every state sells tax tax lien certificates. As investments vehicles certificates are solid, secured by real estate and backed by the government. When property owners fail to pay their property taxes, the county places a lien on the property and sells a certificate to an investor. If the taxes are not paid by the property owner after a certain amount of time then the holder of the tax lien certificate receives the property. If the taxpayer pays the taxes then the certificate holder receives the money paid including an amount for interest.

Tax deeds also involve delinquent property taxes. In this case, after a certain amount of time that the taxes are late, the county will auction off the property to the highest bidder.

Flipping real estate involves purchasing a property at a price substantially under market and immediately selling to someone else for a profit. There are several different ways to accomplish the desired outcome - profit! You can flip a contract - in other words get the deal under contract and then flip it to someone else for a profit. Or you can flip the property itself to someone else.

Rehabbing is popular the "handy" crowd. It's a good way to get started and you can create substantial equity through your own sweat. You can also approach it in a more business like manner especially if you happen to be a contractor. Contractors have the benefit of know how and the manpower available to take on a project.

Developers take raw land and add value through various means. Some developers take a project from conception through to completion. This could be a single house or whole housing development. Others take the raw land, rezone and/or obtain approvals and then sell the project to builders. Still others actually install the infrastructure and sell to builders. As you can see there are a lot of ways to add value to raw land.

There are so many ways to get involved in real estate that surely one or more methods will meet your specific needs. You're really only limited by your imagination when comes to real estate investing.

Educate yourself, find a niche and a mentor and get out there and find a deal. Have an open mind and think of creative ways to solve problems. It takes work but where there's a will there's a way!

Until Next Time