The first thing you should do to become a professional investor is to educate yourself in the world of real estate. If you do not know the terminology or financial strategies you could find yourself lost in the middle of a deal you know nothing about. Worse yet, you could lose the money you were trying to make in the first place. There are many ways to find out about real estate. The Internet is full of web sites which offer many real estate articles concerning investments.
Do not pay attention to the no money down deals you hear about all the time. These are rare and very few and far between. If someone is selling their property because of financial problems they are not going to take back a note on the property. You need to understand there are things like closing costs which someone has to pay, as well. There may be times when you can get the seller to pay them. However there are still other fees you will have to pay on your own. This includes appraisals, title insurance, property insurance, and even taxes. The no money down deals sound too good to be true because they usually are.
You will also want to know your laws and regulations in the area in which you are going to be investing. You do not want to find you have purchased a property you can do nothing with because there is a clause in the sale stating the owner has six months to come back and reclaim the property. Bankruptcies are protected in many areas. Just because a property is on the market because of a bankruptcy does not mean you are getting the deed free and clear. You may have to give the home owner time to pay off the money owed. This is why you need to know what laws are in affect governing the real estate in your market.
There are three people you will want to have as friends when it comes to investing in real estate. The first one is a real estate agent. This person can show you the new properties on the market. He or she can also give you pertinent information on the market. They know what is selling and what is not moving. They can tell you what the homes in the area have been selling for and how long it took a property to sell at the asking price. The second person you want on your team is a qualified inspector, who can look at a property and tell you what repairs are needed. This way you can tell whether a good deal is really good or nothing more than a money pit. You do not want to invest in the money pits. Lastly, a lender should be someone you know on a first name basis. They can show you which types of loans you will qualify for with each property. They can also let you know when there are foreclosures coming into the market. You can be one step ahead of the other investors in the area. Also, with a lender being a close acquaintance, you can know what you will qualify for when it comes to buying an investment property.
The professional investor will know other investors in the area. The reason for this is because there may come a time when you have a property which just needs more than you can handle. Being able to turn to another investor for advice or even to form a joint venture on a property is a good thing. Knowing who else in the area does what you do can give you an opportunity to take advantage of properties you may have other wise had to pass up.
You will find the professional investor knows his or her market. They know what is going to sell and what is not wanted. They know which areas are on the rise and which ones are declining. A professional investor knows his or her business. The key to success when it comes to investing is knowledge. The more you know the better you are when it comes to investing.