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Starting Out In Real Estate Investing

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Start with low risk.

There are many Real Estate Investment strategies you can use. Some can be risky and some have a lot less risk. Some take more time and others take very little time. If you are just starting out and don’t really know a lot about Real Estate Investing, I would recommend you start with some referrals and assignments. These have very little risk and it gets you involved in the process.

With referrals all you have to do is refer someone to some else, ideally an investor. The person you are referring could be someone selling a property or someone buying a property. You would evaluate that person or property based on the investment criteria of the investor you are referring them to. Different investors have different criteria so make sure you meet with your investors to understand their investment strategies and their investment criteria. Also, you want to understand your referral fee. You should have a few investors that you are dealing with. You will actually learn from them as well.

With assignments, you actually put your name on an Offer to Purchase for a property. Make sure you make your offer conditional upon something that will allow you to get out of the deal should you not find an investor (e.g financing, inspection, etc.). The assignment can either be assigned to an investor for an assignment fee or for a new purchase price. The new purchase price would be higher that the price you have on your offer. This is how you make your profit. The advantage of the assignment price is that the investor gets to finance your profit because the new price is what they are actually buying the property for. People make a living out of doing just this.

Once you do a few referrals or assignments, then you can move onto Lease Options or even Rentals. Or you can keep doing these if you like.

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