If you’re a new investor don’t try to deal with high-risk properties. Someone new to this business should start slow and take a series of small risks, as opposed to going for the big payout the first time around.
Your first step has to be research. Next, find a Realtor that works with investors and makes good investments themselves. You must be cautious not to make the same mistake most new investors make, by shopping for the lowest commission, you’ll need a Realtor who is willing to work with you for the long haul.
If you want to be a successful professional or have a good company than you should do what most successful companies or professionals do, they work with a well thought out business plan. A business plan would include determining what properties you interested in, how much money you can make, how much a property would cost you to maintain and buy. It would also include any business goals that you may have.
Once you have your business plan in place, its time to take action. If you see a property that you may be interested in, take out an option period for that property, which would give you several days to research on the property. In some regions, an option period is as little as $ 10 for thirty days.
After going to contract, take out your pen and paper (or better yet a spreadsheet) and critically analyze the property. Note down everything that could possibly go wrong and all the ways by which the property would make you money. By listing all the negatives and the positives it’ll be clear to you whether the property is worth investing in. if the negatives override the positives than you know that it is not a property to invest in, and you should walk away from the deal.
These are just the basic steps to get you started. There is always some risk and you’ll need to consider many factors before you actually plunk down your money.
Finally, Free REIT Trainer is an excellent web resource that I use often. If you go their right now, you can access a free video he calls “The 12 Month Real Estate Millionaire” that clearly lays out the tactics and techniques that he uses to earn big money while hanging out in Starbucks!