Real Estate Investing
 I'm sure you've heard of someone that has made a fortune by investing in real estate. Take Donald Trump for example. A real estate entrepreneur who once owed the banks over $90 million and faced bankruptcy and through creativity and hard work managed to become the great success he is today. Very rarely does someone lose the shirt off their back by investing in real estate if they've taken the time to educate themselves first and then invest wisely.
Take the Risk
The vast majority of individuals choose not to even contemplate investing in real estate. Why? Well, there is always a risk with investing and especially with investing in real estate because you are dealing with a lot of money and most of that money has been borrowed. If the thought of investing in real estate has crossed your mind, stop now and read as many articles and books on the subject as you can. Too many people make the mistake of relying on the advice of others rather than making decisions for themselves. The result is usually catastrophic.
Have a Plan
Real Estate Investors always have a plan in place prior to their first purchase. This plan will contain details regarding the characteristics of the property, location, insurance, financing, management, and how long the property will be held. It is also very important to have an exit strategy in place in the case there is a dissolution of a partnership or some type of financial issue.
The "Numbers"
The most important piece of investing in real estate is what many call the "numbers" or making the "numbers" work. This is simply your profit/loss margin. This number is arrived at by adding up all your expenses such as the mortgage, property taxes, insurance, HOA fees, maintenance fees etc and subtracting that number from what you are receiving in rent. With home prices so high these days, many investors will accept a monthly loss of a few hundred dollars. The thought is that the property will appreciate over the long run and they will cover their losses at that point.
How do I Start?
Perhaps the best way to get involved in real estate investing is to talk to others that have already done it and have been successful at it. Since getting a hold of Donald Trump might be difficult, I would recommend joining a local real estate investment club where you will meet hundreds of other like-minded entrepreneurs that are always willing to sit down and share their ideas.
Real Estate Investment Links
"Getting Started as a Real Estate Entrepreneur"
"Why Most Real Estate Entrepreneurs Don't Make Consistent Profits"
"Real Estate Financing"
Local Real Estate Investment Clubs
Investment Club Preconstruction Programs
Investment Club Directory
BiggerPockets.com
Florida Real Estate Club
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