| Real estate investing is one of the most sure-fire | | | | "A lender will allow you to include the rental income |
| ways to increase cash flow, even considering today's | | | | along with your salary when you compute whether |
| market conditions. Although we may not be | | | | you can afford the loan. Try to keep the basic |
| experiencing the housing market boom we saw from | | | | payment -- called 'PITI' for principal, interest, taxes, |
| about 2000-2005, there are still countless ways to | | | | insurance -- to 25% or less of your before-tax income, |
| profit in this industry as an investor. | | | | including the rental income." |
| All it takes is a little information and knowledge. | | | | You definitely do not want to get into something you |
| A January 9, 2007 article by David Crook of The Wall | | | | can not afford in the long run, especially if this is your |
| Street Journal Online, "Post housing bubble, property still | | | | first investment property. |
| pays," discusses the different steps to becoming a real | | | | The most important thing you can do in the beginning |
| estate investor. | | | | of your journey is to research, research, research! |
| "So you think there's still a buck to be made in real | | | | Read as many books you can on the subject and get |
| estate? You're right. There's plenty of money to be | | | | to know as many other investors as you can. |
| made because everyone still has to live somewhere. | | | | Building a network is a big part of succeeding in this |
| And everyone has to work somewhere. And | | | | industry. |
| everyone has to shop somewhere. And someone has | | | | "You need to develop a network of real-estate |
| to provide the space." | | | | professionals, people who can help you acquire |
| "That's where the real-estate investor comes in -- | | | | properties, because you are unlikely to find the best |
| making money by providing one of life's necessities. | | | | places just scanning newspaper or Web listings all |
| And just about anyone can be a real-estate investor. | | | | alone." |
| The capital requirements are quite minimal, and there | | | | "One place you might look for contacts is in real-estate |
| are comparatively few legal restrictions on how you | | | | class. While certainly not required of real-estate |
| operate." | | | | investors, a real-estate license doesn't hurt. It helps to |
| The first thing that a potential real estate investor | | | | establish you as a professional, which has distinct tax |
| needs to look into is where they are going to get the | | | | advantages, and it lets you negotiate as a professional, |
| money necessary to start such a venture. The first | | | | which can result in sales-commission savings for you." |
| step to this is finding a good lender. | | | | Always be aware of real estate schemes (which are |
| Many people are under the misconception that you | | | | quite common these days) that make promises of |
| need a lot of cash, which is not necessarily true. | | | | getting rich in a matter of days. All in all, do your |
| "You can get good quality loans on buildings with up to | | | | homework and when you find a property that is right |
| four apartments under the same easy-lending terms | | | | for you, make that leap! |
| that you can use to buy any residential property." | | | | |