Thoughts About Real Estate Investing For Beginners

Some initial thought about Real Estate Investing for Beginners

Real Estate Investing has undoubtedly created many of the largest fortunes ever amassed for the worlds wealthiest people. Wealth creation using Real Estate Investing as the vehicle has no equal.

Now I know there is an awful lot of hype surrounding the business of real estate investing. Investing in real estate is not a get rich quick scheme. You can attain fabulous wealth, but it won't happen overnight! As a beginner , you may be overwhelmed with information overload not knowing where to start. My goal with Real Estate Investing for Beginners is to help you sort through all the hype. To help you identify a method, set some goals and create a road map for your future real estate investing. Not everyone will have the same road map. There are literally dozens methods, techniques and business plans within the exciting world of real estate investing. Your goal as a beginner should be to identify the method that best suits your needs, circumstances and skill sets. As they say "there's more than one way to skin a cat".
So it is with real estate investing, there's more than one way to invest.

I want to start with an overview of some of the methods or techniques that a real estate investor might use. Before I get into the methods, let me say that our job as real estate investors is to solve problems. The circumstances of the deal will dictate the method. I won't go into detail about the methods in this post. I simply want to get you thinking about them and how each method might be utilized. The list won't be exhaustive at this point, but we will continue to cover various methods in future posts.

I guess it would be fitting to start with foreclosure investing given the current market that we are experiencing . Investing in foreclosure real estate in simple terms, is going down to the courthouse steps and bidding on a home at the foreclosure auction.

Now I'll back up a little with pre-foreclosure investing. Investing in pre-foreclosure real estate is when you buy a property that is in default, before it actually goes to auction.

Moving ahead, an REO or "Real Estate Owned" are properties owned by the bank. The bank ends up with the property when they don't sell at the auction.

Short sale real estate are properties that are sold for less than what is owed on the mortgage. Banks are willing to accept less than the amount owed under certain circumstances. It just so happens that the particular set of circumstances are occurring at this moment. A huge inventory of homes has placed downward pressure on home values. Many homes are now worth less than the mortgage owed. A large percentage of homes purchased in the last 2-5 years were financed with variable rate mortgages. These mortgages are resetting, borrowers can't afford the payments so more homes are being dumped on the market creating further downward pressure on prices. A viscous cycle in the real estate market for sure!

I need to wrap it up for now but there will be plenty more to come. Thank for visiting Real Estate Investing for Beginners. In the next post I'll cover some more techniques for investing in real estate.

Until next time