How do I start investing in Real Estate?

Go to a couple seminars and learn it. everyone is a gonna hate on what you wanna do especially if it will make you lots of money. school is a lie and a way to graduate and be mediocre your whole life and retire to try and enjoy the worst years of your life at 65, take some chances

I’m in your same situation, I have been wanting to invest in real estate and my family is against it. But I don’t understand why because my family are all realtors and investors or builders. But anyways, I am fortunate enough to have money in stock market that IS doing okay and I can borrow against it to purchase homes. But in your situation, I would try to get a home loan and purchase these homes as extra properties to add to your real estate portfolio, or if you can’t get a loan, try to find another investor that would be willing to split the investment with you.

Make lots of money and I hope this helps!

Get involved with one or more area real estate investment clubs. Here’s a link to those in Georgia: http://www.creonline.com/real-estate-clubs/ga.html Go to their meetings. Listen. Pay attention. Network with other investors. That’s the way to get started.

One thing to consider in your situation is to wholesale properties. If you can find properties that fit a specific criterion, you can make money without spending any yourself.

First, the formula you need is: MAO (Maximum Allowable Offer) = ARV (After Repair Value) * 0.65 – Repair Costs – Wholesale Fee.

So it’d work like this. You determine the after repair value of a house. Let’s say it’s $500,000. You multiply that by 0.65, so now you’re at $325,000. Let’s say it needs $10,000 in repairs. Now you’re at $315,000. And let’s say you’d like to make $10,000 on the deal. Subtract your fee, and you’re at $305,000. That’s your MAO–your maximum allowable offer–the most you can offer for the property. So you offer less. Let’s say you can put it under contract for $305,000. This is not the standard Realtor contract. It’s an investor contract, that allows it to be assigned to someone else. (You’re not buying these properties off the MLS. If you do that, you’ll have to use the Realtor contract. That’s difficult, and Realtors hate assignable contracts.)

So, you’re putting the house under contract for $305,000. The contract is assignable, and is contingent upon your finding a buyer. The contract should be for a minimum of 30 days, preferably longer. You provide as little earnest money deposit as possible–maybe $100. It’s been done with less. Then you go out and find an investor who’d like to pay $315,000 for a house that, when fixed up, will be worth $500,000. When you find that investor, you assign your contract to him or her for $10,000. You receive $10,000. The investor has spent $10,000 for the contract, and will pay $305,000 for the property, making his/her investment $315,000.

You’re now out of the picture, but with $10,000 in your pocket. The investor fixes up the house, sells it for maybe $475,000, and makes a nice chunk of change.

Do that a few times. Then find another property, but buy and hold (fix it up and rent it out, making sure you’ve got positive cash flow). And that’ll start you off as a real estate investor.

Hope that helps.