NoSoup

Lol, Thanks

Am I a fulltime investor? Where did I learn my trade? How many properties do I own? Well, I'll answer those in a bit...

First of all, knowledge is power. Utilize every (reliable) resource you can to know as much about investing in real estate as possible. However, experience itself will be your greatest mentor. Regardless of how much you read, it will still be quite a scary experience buying your first home, as well as any investment properties you aquire soon after that. Once you have "been around the block" per se, a few times, you'll be buying and selling properties like it is nobody's business.

Motivation is key. Once you pick up your first property, it gets exponentially easier to do in the future. Basically, it's your future. Most American Millionaires became so rich through real estate. It is a long term process, but one that will generally pay off in the long run. Also, it is one of the more forgiving investments, so some would consider it much safer than typical investments. For example, if you buy a stock at the "wrong time" stock prices may plummet and you're out your money. However, even if you pay too much for your house, appreciation will be your savior and eventually make it worth what you paid for it, providing you hold onto it long enough. Real Property also offers extremely good tax benefits. The only real issue with real estate is that it is rather illiquid. What other investment potentially pays for itself?

Get out there and look for properties - you may have already missed out on a great deal by procrastinating, but not to worry, as there always will be great deals out there. Get hooked up with a realtor you get along well with, you can trust, and has experience. Tell them what you are looking for, and go take a look at all the properties that match your criteria.

You said that you are renting, and although generally people do own their own homes before buying investment properties, if you find one that is a must have before you find a home for yourself, don't be afraid to "go against the norm" and pick it up. However, when looking at homes to purchase to live in, keep in mind that this is the best investment you'll make as far as tax breaks go - keep in mind what you want to do with the home, be it sell it in a few years or rent it out, and stick with the plan. Get a loan (30 year fixed, 3,5, or 7 year arm, ect) that suits your needs. If you plan on moving out in 3 years, don't pay the higher interest with any of the other loan types, pay the smaller amount on the shorter arm. (Oh, ARM = Adjustable Rate Mortgage, generally fixed for the period specified, and is either required to be paid off (balloon) or adjusts at the end of that period)

Take a look around you, dpezzo, and take note. Is this where you want to be in 1 year? 5 years? 30 years? If not, you can start paying those mortgages down as soon as you buy the properties, and no mortgage means a huge increase in net cash flow. Take action, although you may be uneasy, get out there and look at properties. Don't rush into anything, but never, NEVER allow fear to cloud your decision. I was afraid to purchase a 2 million dollar apartment complex, and a fellow I know bought it. The numbers made sense, more than sense really, it was a perfect property at a crazy low price. I was afraid to be in that much debt, and I am kicking myself in the ass for it. This guy, 25 years from now, when the mortgage is paid in full, will be NETTING 300k a year to sit on his ass. (lol, sorry, still a bit bitter - but lesson learned)

Be logical and decisive when you make your choice, but make a choice - getting started is the most difficult part of real estate investing.

As to options, they can be a huge value or a waste of money. If you do find a property that you believe is able to be "turned around", filled with renters, ect; see if you can buy a lease option. It allows you full control over the property, and that way you'll only have to purchase it if you can meet your own specified criteria. If you can't, you generally only lose a relatively small sum compared to if the property itself went sour. Also, many people, especially those that have had their home on the market for a while with no nibbles, will freely (and cheaply!) give out lease options on their home in hopes of selling it. Each situation should be considered before deciding on a loption, but when it comes down to it, it may be a deal breaker or maker if you can get it fully rented.

As to your questions...

"Are you a full-time real estate investor?"
Nope, not yet

"If so, where/how did you learn your trade?"
Well, I'll answer, although I am not invested in real estate. I am currently 20 years old, and have been in the banking business now for four years. I have been dealing with buying, selling, trading, marketing, analysing, appraising, and inspecting homes now for the last two years. I am currently a Mortgage Broker. I chose this profession because I too am going to invest in real estate, and the best way I could ascertain information about it is to be in the business. As I am only 20, my plan needs to have a few fundamental differences than yours. Because I don't have an exceptionally long credit history (got a credit card and a signature loan on my 18 Birthday, but that's not even 3 years yet) some lending agencies, especially when considering investment property, may require me to have a lower Debt-to-Income ratio than people with more established credit. I plan on doing this by purchasing my first home in cash and having renters. It will likely either be a single family or a duplex though, only in extreme circumstances would I invest in a condo or townhouse. With the lack of a mortgage, my payment will only be taxes and insurance, so I would imagine I would be able to show a rather decent positive cash flow.

"How many properties do you own? (Just curious)"
Zilch, Zero... Nadda
However, I have been looking for the better part of a year now, but I have yet to find what I am looking for. Granted, there have been properties that I probably should have picked up, but I am happy where I am right now (I also rent) I love my apartment, and am likely putting off purchasing real estate until the winter months when prices are more likely to drop. Also, that gives me the rest of the summer to party

If you have any more questions, please feel free to post em here, PM me, or I regularly check Ask The Loan Officer, a thread I started a while ago to help answer any credit/banking/loan/real estate questions that I can...

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