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Welcome to
RentLaw.com's Real Estate
investment guide. As a landlord, real estate investor and
publisher, people always ask how we got started in real estate - the answer is
Hard Work and Good Luck.
Having money behind you always helps. So does the
ability to assume the risk of associated with investing. At
Rentlaw.com, we advise to be cautious on those get-rich-quick
schemes. You can use the motivational elements of these
seminars and speeches, but you should:
1. Learn the market(s) you are interested in. I
own seven single family homes - all within 1 mile of my home. I
know my market. I sell commercial real estate - but I don't own
any. Why? I am not comfortable with the market in this area.
2. Understand the money available to you. Do you
have home equity money to leverage?
Do have partners or other
investors? Do you know your bank rate of interest and your local
banker?
3. What are your investment goals? Why are you
investing your (or your borrowed money)?
4. Are you hands on? Who will manage your
investment(s)? For the smaller landlord, with some skills in
basic home repair, you can increase your profits by doing your own
work. Larger properties and commercial
properties would require additional support. BUT - you can still be
hands on.
5. If you want to invest in real estate, you
should get your Real Estate License in your state. Even if you
never intend to use it as a salesperson, you should consider it.
You will learn your state rules and regulations and more. Our Guide
to Real Estate Schools will point you in this
direction.
6. Learn Real Estate and Finance Terms. See our
FREE Real
Estate Glossary.
We got started as a landlord because we could NOT
AFFORD to buy a nice house in New Jersey. At the time, it was easier for
us to afford an investment home. In this case a 3 family home. It WAS in need
of repair. But with two other units producing income- we were able
to live in one and rent the other two. Eventually we would live in
each unit, fixing each one as we went - then rented them
out for TWICE what they previously did. That was in 1986. We have
since continued acquiring and cleaning up older single family
homes - in our area. That was then. The current market simply
doesn't work. The rent will not cover the costs to carry the home.
There is NO GET RICH
scheme. HARD WORK, some luck,
some skill, listening to tenants, maintaining the units and
reading about the industry.
We are not absentee landlords - living within 1
mile of our units...and that is about as far away as
I would go. You may be able to find a property manager who will do
the management for you - but this eats your profits.
Donald Trump didn't start off broke. He is a
successful marketer, shrewd negotiator and is a strong public
figure that people associate with.
But you can invest and earn a positive cash flow. If
you do your homework.
Most importantly - know your market
- the area,
current rents, potential and learn. Learn the business - my father
always said.. "if you would just read..."
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