| Is real estate investing only for the wealthy? Can you | | | | can lose money, be willing to learn the numbers, and |
| buy with no money down? Do you have to know the | | | | you can start where you are. |
| "right" people? Let's answer by looking at some of the | | | | 5. Some investors have a "knack" for making money. |
| myths of real estate. | | | | Sort of. More accurately, some just took the time and |
| 1. Real estate investing is for the wealthy. Money helps, | | | | risk to learn the market and continue their education. |
| but my first real estate investment was a $3,500 lot - | | | | 6. You need to know the "right" people. It helps, so |
| which I sold for a profit two weeks after I bought it. | | | | start the process. Talk to investors, real estate agents, |
| Small deals, partners, low-down deals, or just putting | | | | landlords, etc. |
| aside $7 per day for a couple years until you have | | | | 7. You have to be great negotiator. If you learn to run |
| enough money for a downpayment - these are some | | | | the numbers and make the offers based on them, you |
| of the ways to start with a little and invest in real | | | | can be the worst negotiator and still do okay. |
| estate. | | | | 8. You need insider knowledge. Understand one deal, |
| 2. "0 down" isn't possible. I sold a rental property for | | | | and you are on your way. Read and read more, but |
| $1,000 down because I trusted the buyer to make the | | | | the best "insider" knowledge comes from experience. |
| payments, and I wanted the 9% interest and higher | | | | 9. Fixer-uppers are safe. People have the idea that |
| price. He could have gotten a cash-advance on a | | | | doing the work themselves is the safest way to |
| credit card for another $30 per month and made it a | | | | assure a profit. Not true. Mis-planned "fix and flips" |
| "0-down" deal. "No money down" means none of | | | | have bankrupted even experienced investors. Most |
| YOUR money down, and yes, it happens. | | | | poorly purchased rental properties will only eat a little |
| 3. "0 down" is the best way. If you don't invest some | | | | money every month. |
| of your own money, you'll have higher payments. You'll | | | | 10. The key is lowball offers. The numbers have to |
| also spend more time finding suitable properties, and | | | | work, and you need a plan. You can offer MORE than |
| pay more for them (generally cooperative sellers want | | | | the market price and make money investing in real |
| more for their cooperation - I do). There are 0-down | | | | estate, if you understand creative financing - and how |
| deals out there - they just aren't always worth doing. | | | | to do the math. |
| 4. You need experience. Experience helps, but you get | | | | Steve Gillman has invested in real estate for years. |
| it by investing. Start with common sense, ask how you | | | | |