Over the many years that we've been serving real estate investors, one of the most asked questions on our site has been, "How Do I Get Started in Real Estate Investing?" People from all over the world have been coming to BiggerPockets to find the answer to that question. While some might lead you to believe that there is a simple answer that works for everyone, that simply isn't the case. We've built this guide to help simplify the process of figuring out how YOU can get started. Of course, this guide is not an all-encompassing "how-to" manual about every aspect of investing in real estate, but a broad-stroke overview of the best ways to start down your path to financial freedom through real estate investments. What to Expect in This Beginner's Guide This guide contains eight chapters, each focusing on a specific part of your investing journey. If you can master these, you increase your chance of building wealth through real estate and minimize the risk of failure or loss. This guide will walk you through the following: Your Real Estate Investing Education Before you start investing in real estate, it is imperative that you get educated in the important concepts. There are dozens of ways to get educated and build your knowledge base, and Chapter 2 will focus on those areas in great depth. Choose Your Real Estate Niche and Strategies There are a number of different strategies and angles from which to approach the business of real estate investing. The more you focus on one specific thing, the better and more knowledgeable you become at it. This will be the focus of Chapter 3, as we dive deeper into looking at the various niches and strategies you can profit from in your real estate journey. Create Your Real Estate Business Plan As the ancient proverb goes, a house built upon sand is subject to collapse. By creating a strong foundation that your real estate endeavors will stand upon, you will create a more sustainable business that can weather the storms you may face. Chapter 4 will show you the best ways to build that foundation to maximize the odds of your success. Find The Best Investment Properties When it comes time to actually make your first investment purchase, it is vitally important that you don't pay too much and that you invest in the right kind of property. Chapter 5 will dive into the specifics of how to set proper criteria to guide your investment decision making. Financing Your Real Estate Investments Paying for your investment is much different than paying for a loaf of bread - and the method used can often mean the difference between success and failure in a real estate investment. Chapter 6 will dive into the various financing tools you can use throughout your investing career. Mastering Real Estate Investment Marketing Regardless of what aspect of real estate investing you choose to focus on, you will undoubtedly need to have a strong marketing skill set. Too many investors have the "if you build it, they will come" mentality when it comes to real estate. Putting together the right marketing program and allocating the necessary amount of resources towards it is absolutely crucial to the success of any real estate investment business over the long term. Chapter 7 will focus on the marketing aspect of your real estate investing business. Knowing and Executing Your Exit Strategies How you plan on exiting your real estate investments is just as important as the way you enter them. Whether you sell, rent, or exchange your property, it is vitally important to have a clear understanding of your exit strategy options for any investment deal from the beginning in order to minimize your risk. Chapter 8 will discuss these exit options in detail to help you plot your investing course. Are You Ready to Begin? As you work your way through this guide, remember that this is not all-encompassing. It is a 40,000 foot view of how real estate investing works and is designed to give you the basic tools to get past the all important question of how to get started. As you read along, make note of any questions or highlights, and then come back to BiggerPockets.com and search the site or ask questions on our Forums to learn more about anything on your mind. If you're unfamiliar with our site, BiggerPockets.com is an online community of real estate investors with the web's largest collection of advice for new and experienced investors and is free to join and to begin participating, learning, and growing. If you are new to BiggerPockets, start with our real estate forums. The BiggerPockets Forums contain more than 2,200,000 posts about every aspect of real estate investing, updated hundreds of times daily. Search through the site or create a new thread and ask any questions you might have; many of our 654,451+ members will be there to help answer your questions. Also, check out the BiggerPockets Blog, which holds more than 7,800 articles from experienced investors in many different real estate niches, as well as the BiggerPockets Podcast, now the leading real estate podcast on iTunes. These sources, along with hundreds of other pages on the site, make BiggerPockets.com the largest source of real estate investing knowledge on earth. Within these chapters, there are numerous links to additional articles and discussions found on BiggerPockets. We recommend you take the time to scour these, as they will help answer many of the questions you've got and will explore topics that are sure to be important to you on this journey. Of course, if there are questions that this guide or the articles do not address, please be sure to ask them in our real estate investing forums. If you are not a member already, please take a moment right now to sign up for a free membership on BiggerPockets.com. Go to BiggerPockets.com/signup. It is perfectly natural to be intimidated, but our goal at BiggerPockets is to help you overcome your fears and your countless questions by providing as much free information as possible to help you make the best decisions for your own needs. If you are ready to begin the Ultimate Beginner's Guide to Real Estate Investing, click below to turn to Chapter 1... Click here to proceed to the next chapter... Jump to Another Chapter: Chapter 1: How to Invest In Real Estate Chapter 2: Your Real Estate Investing Education Chapter 3: Choosing Your Investing Niches and Strategies Chapter 4: Creating Your Real Estate Business Plan Chapter 5: How to Find Investment Properties Chapter 6: Financing Your Real Estate Investments Chapter 7: Real Estate Marketing Chapter 8: Real Estate Exit Strategies
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The 10 Cheapest Housing Markets
1. Detroit, Mich. area.<a href="http://www.zillow.com/homedetails/4801-Eastlawn-St-Detroit-MI-48215/88668637_zpid/#scid=hdp-site-map-list-photos" target="external">This home (link)</a>: $12,000. Average price: $74,200. Foreclosures hit a 44 month low in July according to RealtyTrac, but foreclosures still plague states. Michigan had the 4th highest foreclosures in July: 10,894 filings. Zilllow.com 10 Cheapest Homes Detroit, Mich. area. <a href="http://www.zillow.com/homedetails/18836-Chandler-Park-Dr-Grosse-Pointe-Farms-MI-48236/88097386_zpid/#scid=hdp-site-map-list-address" target="external">This home (link)</a>: $79, 900. Average price, according to Zillow.com: $74,200. Courtesy of zillow.com The 10 Cheapest Housing Markets 2. Ocala, Fla. area. <a href="http://www.zillow.com/homedetails/5674-SE-41st-St-Ocala-FL-34480/58332034_zpid/#scid=hdp-site-map-list-address" target="external">This home (link)</a>: $19,900. Average price, according to Zillow.com: $81,000. Florida was in the 10 states with the highest number of foreclosures in July, with 22,377 properties, down 6 percent from June. Zillow.com 10 Cheapest Homes Ocala, Fla. area. <a href="http://www.zillow.com/homedetails/9750-SW-97th-Pl-Ocala-FL-34481/45887202_zpid/#scid=hdp-site-map-list-address" target="external">This home (link)</a>: $80,000. Average price, from Zillow: $81,000. Though Florida is far from its real estate boom, foreclosure filings have decreased significantly since last year; foreclosure filings are down 57 percent from July 2010. Courtesy of zillow.com 10 Cheapest Homes 3. Mobile, Al. area. <a href="http://www.zillow.com/homedetails/808-Lynn-Ct-Mobile-AL-36695/50999898_zpid/#scid=hdp-site-map-list-address">This home (link)</a>: $89,500. Average price, according to Zillow.com: $89,100. The average home price in Alabama according to Zillow in June was $100,800. Courtesy of zillow.com 10 Cheapest Homes 4. Toledo, Ohio. area. <a href="http://www.zillow.com/homedetails/4316-Westway-St-Toledo-OH-43612/34649207_zpid/#scid=hdp-site-map-list-address" target="external">This home (link)</a>: $89,900. Average price, according to Zillow.com: $90,300. Ohio was also in RealtyTrac's list of 10 states with the highest foreclosure filings in July, with 8,376 properties. Courtesy of zillow.com 10 Cheapest Homes 5. Lakeland, Fla. area. <a href="http://www.zillow.com/homedetails/1738-Fox-Hill-Dr-Lakeland-FL-33810/47393613_zpid/#scid=hdp-site-map-list-address" target="external">This home (link)</a>: $85,000. Average price: $92,400. Florida's average home price in June according to Zillow was $124,400, down 5.6 percent from last year. This year's harsh hurricane season could affect the market. Courtesy of zillow.com 10 Cheapest Homes 6. Binghamton, N.Y. area. <a href="http://www.zillow.com/homedetails/128-Crestmont-Rd-Binghamton-NY-13905/29721415_zpid/#scid=hdp-site-map-list-address" target="external">This home (link)</a>: $89,800. Average price: $92,700. The city is 150 miles away from Manhattan's overpriced condos. But it can boast of Binghamton University SUNY, one of the best public universities in the Northeast. Courtesy of zillow.com 10 Cheapest Homes 7. Canton, Ohio. area. <a href="http://www.zillow.com/homedetails/914-Chapel-Rdg-NE-Canton-OH-44714/35213311_zpid/#scid=hdp-site-map-list-address" target="external">This home (link)</a>: $91,900. Average price, according to Zillow.com: $93,000. Buyers who love football could score with an affordable house in Canton, home of the Pro Football Hall of Fame. Courtesy of zillow.com 10 Cheapest Homes 8. Dayton, Ohio area. <a href="http://www.zillow.com/homedetails/1242-Arbor-Ave-Dayton-OH-45420/35084530_zpid/#scid=hdp-site-map-list-address" target="external">This home (link)</a>: $79,900. Average price: $93,700. According to Businessweek, Dayton was the 20th best place in the U.S. for college graduates to find a job in 2010. Houston was no. 1. Courtesy of zillow.com 10 Cheapest Homes 9. Rockford, Ill. area. <a href="http://www.zillow.com/homedetails/1324-29th-St-Rockford-IL-61108/5532761_zpid/#scid=hdp-site-map-list-address" target="external">This home (link)</a>: $84,900. Average price: $96,200. About 90 miles west of Chicago, the Rockford area has a population of 340,000. Illinois' foreclosures increased 20 percent in July from June to 10,627. Courtesy of zillow.com 10 Cheapest Homes 10. Pueblo, Colo. area. <a href="http://www.zillow.com/homedetails/5002-Thatcher-Ave-Pueblo-CO-81005/14034757_zpid/#scid=hdp-site-map-list-address" target="external">This home (link)</a>: $81,900. Average price: $96,600. Colorado is not known for its foreclosures. But Pueblo's schools may be known for possibly hitting the lowest state achievement category, according to the AP on Aug. 25, 2011. Courtesy of zillow.com As with anything in life, real estate is best learned through experience. A straight-talking real estate agent would tell you that right home selling is simply a matter of putting the facts into an efficient, no-nonsense process. It's true that there are good and bad ways to sell your home. But the good ways are based not on tricks but rather on simple service, individual attention, and straight dealing. Follow these top 10 tips and get yourself on the way to sell your home in 2017! #1: Never underestimate the self-education a buyer can get on the Internet. Buyers look for homes more than real estate agents do! Today there's a lot more going on in a buyer's calculus than just "location, location, location." Essentially, what this means is that you can't overprice your home. Some real estate firms teach their agents to take listings at a high price and walk the client down later, once they're locked in. So don't let an agent's large number give you an unrealistic idea about value. Even if they list your house at an incredibly high price, they'll often accept a low offer for you and tell you it's the smartest move you could make. It's fun to dream sometimes, but now is not the time for dreaming. If your house is overpriced, all you're doing is providing a marketing tool to help your neighbors sell their more realistically priced home. #2: Mass marketing is for cheap products, and houses are not cheap products. People want to feel like individuals. No matter what they're buying, they want to feel special, and they are buying something special. Tell a story with your marketing. Create a sense of the happiness people will find in your home. #3: The Internet is the greatest democratizer of our time. You can sometimes post your home on some listing websites for free and without representation from an agent, but not often. Buyers love easy-to-use Internet sites, and real estate agents tend only to post on MLS. Be advised though that there are various websites of real estate agents that let buyers view a multitude of listings, this is very much so the case when searching homes for sale in albuquerque nm, or any other major city where realtors are serious about presentation & building good customer relationships. Many places not only in the southwest part of the US but across the entire county are now offering MLS search tools, advice & more directly on their website. #4: You need to be a participant, not a spectator. A home listed with a real estate agent is not a guarantee your home will sell. Real estate schools teach agents how to answer multiple-choice questions on a government exam, but these courses can't give them hands-on experience. Again, if your real estate agent requires a 12-month listing agreement, I would question them. #5: People are shallow, and your buyers will judge on appearance. Do whatever you can to get your home looking great. You don't have to spend a ton of money, but at the very least, everything needs to be spotless. You can take some good actions from the post mentioned here, to find inexpensive ways to prep your home before selling it. #6: Buyers think clutter is contagious and they don't want to catch it. If your home is over-stuffed, buyers will perceive it as too small for their needs, no matter what the size. Use this as an opportunity to get rid of everything you don't need. This rule applies not only for showing your house but taking pictures of your house. #7: Same goes for the garage, which is a space for your cars, not a storage unit. #8: Look at your yard sign like it's a billboard. It should hook the buyers in, and provide information. It should not be a tool to advertise for a real estate company. You want a customized sign for your home and yes, it should have the price on it. Real estate firms use signs to get clients, but this makes buyers mad. They want the information, and they want it now. They don't want to be screened by a real estate firm's property desk to get a price. Also, stay away from cheap yard signs from the hardware store. They scream, "I am desperate-won't you, please come give me a lowball offer?" #9: Know the square footage of both your home and your lot. Having the wrong square footage of your home is equivalent to leaving money on the table. For a few hundred dollars, you can hire an appraiser to measure it. Just because you are selling your home does not mean you have to do everything by yourself. Do not be afraid to hire a professional if it will save you money. Real estate agents rarely save you money. #10: Buyers start their search on the Internet and then finish on the ground. If you've got bad photos, they'll never take a second look. In summary, by using this small guide you can do prepare your home for sale in the best possible way without breaking the bank. The housing market saw an amazing recover in 2016, with interest rates on mortgages dropping steadily, and housing prices increasing at a healthy rate. Since the election, mortgage applications have even risen an additional 13%, as buyers try to close on the home of their dream before interest rates rise again. What does that result in? More homes than ever being sold at astronomical prices, and many buyers left wondering: who buys these home?
One Houston Real Estate company, Nan and Company Property, has been capitalizing on the steady incline of the real estate industry. Nancy Almodovar, CEO of the firm, gave us an inside look at what it's like to be a part of the top luxury real estate firm in Houston, and a few secrets about what goes on behind the scenes of a seven-digit sale: (Built by Al Ross luxury homes) Real Estate Agents Accommodate Clients' Busy Lifestyles, No Matter What "Selling a multi-million-dollar home comes with a new list of challenges, and be a roller coaster of needs and timelines," says Almodovar. "Agents must still solidify standard information, such as price and move in dates, but there are usually many more requirements and unique inspections that must be done. Clients asking for non-disclosure agreements, and needing to measure garages to ensure their luxury vehicles are safe from both damage and theft are not out of the ordinary. I actually had two brothers who were both clients for years and never knew, because they both had me and my team agree to thorough NDAs." It's also no surprise that buyers have requirements of their own to function, and have many more constraints on their time. The more a home costs, the more likely the buyer works extended hours, travels frequently and has multiple responsibilities that can make sitting down for a close difficult - which can mean that sales are much more similar to business-to-business interactions than business-to-consumer. "When I first entered the luxury market, I was shocked when buyers requested a specific location for a close," Almodovar explains. "Years later, I'm no longer phased when it's simply impossible to close unless both teams can meet at the client's' office, gym, or even current home. Luxury real estate agents have similar average workdays to enterprise sales, in that we bend over backwards to please - but it's all worth it in the end." So Many Buttons, So Many Rooms, So Little Time When you picture a multi-million dollar home, you likely imagine a very large and expansive piece of real estate. That large piece of real estate can, however, throw agents for a bit of a loop when it comes to showing potential buyers the property. "As smart home features become increasingly commonplace, the number of homes in which simple preparations done by the agent, such as turning all of the lights on, requires technical knowledge is rising," explains Almodovar. "It's a bit silly to think about, until you're standing in front of an Amazon Echo or Google Home device yelling at it, while also looking for a remote that turns on the right fixtures." Even when these homes don't have smart features, the sheer size of them makes them a challenge. Almodovar comments, "there are definitely a few homes where, after a day of showing them, I literally felt like I had a workout. It's important for us real estate agents to realize that we actually do have a very active job - stay hydrated, people!" Exotic Finishes Give Real Estate Agents The Jeopardy Experience It's very common for high rolling buyers to have very specific details in mind for their perfect property, which means luxury real estate agents must be well educated on finishes and materials, and make sure they stay up to date with every current trend. "In the multi-million-dollar market, finishes can make or break a sale - it's all about quality," says Almodovar. "If you can't tell the difference between veneer and solid wood, you risk your buyer questioning the value of the house, or, if you try to guess, your honesty." What can the rest of us learn from this? Next time you meet a luxury real estate agent, make sure to let them sit down! http://www.huffingtonpost.com/george-beall/what-goes-on-behind-the-s_b_13274546.html "I sort of hope that happens because then people like me would go in and buy," Trump said in a 2006 audiobook from Trump University, answering a question about "gloomy predictions that the real estate market is heading for a spectacular crash."
The U.S. housing bubble burst two years later, triggering the stock market crash of 2008 that plunged the U.S. economy into a deep recession, leaving millions of Americans unemployed. Trump was speaking with Jon Ward, a marketing consultant who "masterminded all the initial education programs for Trump University," according to his website. The audiobook is available on iTunes. "If there is a bubble burst, as they call it, you know you can make a lot of money," Trump said in the 2006 audio book, "How to Build a Fortune." "If you're in a good cash position -- which I'm in a good cash position today -- then people like me would go in and buy like crazy." The Trump campaign did not respond to requests for comment. Few, including Trump, predicted the 2008 crash or the magnitude of the recession that would ensue. "I'm not a believer that the interest market -- that the real estate market is going to take a big hit," Trump said in the same interview. But Trump's comments in the audio book, a project of his Trump University -- which is currently facing three lawsuits representing thousands of former students -- underscore the challenges the billionaire and presumptive Republican nominee will increasingly face in the general election as comments from his life before politics return to haunt him. Trump has come under fire for a slew of remarks he made before entering the presidential fray last year, from misogynistic comments about women to statements on certain issues that undercut his current policy positions. But in beating back such criticism, Trump has sought to convince voters that, despite his multiple flirtations with running for president over the last two decades, he never planned to run for president, "Don't forget, I was never going to run for office," he has said. Trump, who has staked his candidacy on his wealth and business acumen, has also been unabashed about prioritizing his business interests above all else -- even when it has involved helping politicians with policy positions antithetical to his own. He defended his hundreds of thousands of dollars in donations to Democrats by saying that he "got along with everybody" in order to boost his business. Trump has also defended the bankruptcies several of his businesses have undergone, saying he has "taken advantage of the laws of this country," even as thousands of his employees lost their jobs as a result. And he has also defended manufacturing much of his merchandise abroad, including in countries like China. But as he launched his presidential bid last June, Trump flipped the script and struck a decisively populist tone --pledging take on very same self-interested maneuvers of businesses that he also employed -- and vowed to compel U.S. businesses to manufacture in the U.S. and slammed the influence of special interests in Washington. |
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