Real Estate Investing 101

You may not have a finance degree, but today’s world requires you to be conversant with the world of investing. You will have to make choices about how to invest your 401(k) dollars, and, if you’re able to save outside of that plan for other goals you’ll have to invest that money too. But investing wisely is simple, and you can do it yourself. If you choose to hire someone to do it for you, it is still necessary to understand the basics.

Start small. Don’t invest your entire fortune when you are first starting out. On the contrary, the right way how to start investing is to take smaller risks first. Test out some investing strategies and techniques, and go for the small gains. By doing this, you will increase your confidence in your ability to invest. Furthermore, if you were to end up losing your investment, you won’t end up going broke. You will have only lost that modest amount that you had put in, in the first place.

Bonds also come with a certain lifespan and that can be 10, 15 or 20 years. Upon reaching its maturity, bond holders will receive all their money back. So if you happen to invest 00 in a 10 year bond that pays 5% interest, you are going to get a total of 0 over 10 years and your 00 back at the end of the term.

One important aspect to learning how to start investing that many people fail to do is to clearly settle on what are their financial goals. How much money do you want or need to earn? By what date do you need to have this amount of money by? Or, if you are looking for recurring income, how often do you expect to earn this same amount of money? By setting clearly defined financial goals, you will be able to chart your course in such a way that you will make the appropriate investing moves that will help you to reach that goal on time and on the money. Goal setting is critical to knowing how to start investing.

Gunslinger in the wild west mentality – if you think that you can do whatever you want when you’re face to face with homeowners in distress, you would better have a sit down meeting with yourself (as Tony Soprano would say) and seriously think it over. Sure, big money is waiting for you to find it as long as you follow the rules. You had better believe that your local authorities will not appreciate you trying to shade the truth or outright deceive homeowners in distress. Most states have some sort of consumer protection laws in effect to protect unknowing homeowners from unscrupulous investors. There’s no need to be paranoid. Just be prepared.

Let’s take a stock investing 101 example here. Let’s say that I would like to buy a stock because I think it may increase in value. However, I’m a little unsure and don’t exactly want to take the chance that it won’t rise. Instead, I can buy a call option for about the current market price and wait to see if it does rise. If it does, I am know granted the option to buy the stock for the lower price. I then have the ability to hold on to my stock or sell it for a profit (minus commissions, taxes, and the cost of the option).

As A wholesaler you position is easy! Find a particular type of property that buyers/investors are looking for. Simple right? Why yes, yes it is.. Once located you just pass the new found deal onto your buyer/investor. Basically all you are doing is acting as the middle man or a bird dog (plus a few steps) type. With this type of investing you can make upwards of 10k from each and every deal you do, depending on the type of deal you uncover. With nothing more than time invested in these deals how can you go wrong!!!!