question Kristy T : What is the best way to get into property investment to get ?
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reply by Kevin H
The first step is to learn about the company.
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What is the best way to get into real estate to get investment?
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Having money to begin with and really knowing your stuff. It wouldn’t hurt to get a real estate license either.
get a license (use the commission as part of a down payment).
Research the market.
Buy your first property.
Wow, that is a loaded question. It may be hard depending on where you are, but contact and interview several real estate agents over the phone. First question is….how many properties do you own and do you manage them? If they do not have at least 3 to 5 properties move on! I teach a system called 25 BUY 65, that means …you should own 25 houses or rental properties prior to age 65 ( that is just the goal) They should all be properties you would live in, so that you can live in them 2 year in the past 5 years before you sell and never sell until your 65! In addition, you might want to grab and apt complex or 2! Some of my students would rather just get several apt complexes as they are cash machines! My charge is free as I get paid when you purchase the properties I help you secure.
Sit down with some small landlords. Talk to some investors. interview people in the industry. Work your butt off. Search the internet for weeks on anything you can about your choice of investing. It is a HARD JOB. can be very rewarding, and very frustrating. Read lots of books that you can get at Barns and Nobel or the library. Talk to loan officers at banks, Above all make sure your credit is clean… if you don’t do the home work, you will have problems.. take care.
You need to remember that talking to a poor person will not tell you how to get rich. You need to talk to someone that is making money, Listen and learn. Admit you know nothing. I Have been in the business for 20 years and still learning, even though now retired, mostly. If you can count paid off rentals retired. LOL How about Simi-retired??
Here is a good rule of thumb. The monthly rent on the property should be 1% or greater of the purchase price.
get in on the flips in your area. They can be worth tons but do your homework before you buy so you dont buy something that want make a good return
This answer is lengthy but I thought it may help you think through your decisions.
1.Watch and know your market. Know what sells and for how much.
2.Find an agent who you can talk to and trust.
3. Find a bank that will back you and you can trust.
4. Find a home you do not mind owning if you do not resale it and make sure you can convert it to rental income.
How to Make and save money in Real Estate
Tax incentives for real estate investors can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income. Tax breaks can often enable investors to turn a loss into a profit.
For which items can investors get tax breaks? You could claim deductions for actual costs you incur for financing, managing and operating the rental property. This includes mortgage interest payments, real estate taxes, insurance, maintenance, repairs, property management fees, travel, advertising, and utilities. These expenses can be subtracted from your adjusted gross income when determining your personal income taxes. Of course, these deductions cannot exceed the amount of real estate income you receive. In addition to deductions for operating costs,
you can also receive breaks for depreciation. Buildings naturally deteriorate over time, and these “losses” can be deducted regardless of the actual market value of the property. Because depreciation is a non-cash expense — you are not actually spending any money — the tax code can get a bit tricky. For more information about depreciation and various tax alternatives, ask your tax advisor about
Section 1031 of the U.S. Tax Code.
Have a Positive Cash Flow
There are two kinds of positive cash flows: pre-tax and after-tax. A pre-tax positive cash flow occurs when income received is greater than expenses incurred. This sort of situation is difficult to find, but they are usually a strong and safe investment. An after-tax positive cash flow may have expenses that outweigh collected income, but various tax breaks allow for a positive cash flow. This is more
common, but it is generally not as strong or safe as a pre-tax
positive cash flow.
One of the most important factors in determining a solid investment is the amount of equity you are purchasing. Equity is the difference between the actual worth of the property and the balanced owed on the mortgage.
Investing in real estate is relatively complex, it is often worth
the extra work. When compared to other inancial investments, like bonds or CD’s, the return on investment for real estate purchases can often be greater.
The key to real estate investing is equity. Determining the proper amount of equity may require the assistance of a real estate professional.
join a group that deal in the area that you are looking to invest. here is a new group just started to try. developers_for_investors
this is there url http://finance.groups.yahoo.com/group/developers_for_investors/