How to Get Started Investing in Real Estate

If you want to make money investing in real estate, you have
to begin with a plan. Here are some ways to get started
investing in real estate. Choose a plan that works for you.

If you don't currently own your own home, that's the best
place to start. Many people never buy a home because they
think they have to have perfect credit or a lot of money
down. Talk to a mortgage loan officer. You may be surprised
that you can buy a home with little money down.

Homeowners Are Real Estate Investors

Any home owner in reality becomes a real estate investor.
Whether home owners want to stay in their home for life or
just a few years, their home should make them money. Many
families only own one home at a time, but they keep moving
up. Some of these families have made money from their homes
by taking out the equity to pay bills. Other families bought
more expensive homes, which went up in value more than the
first home. For instance, a family bought a home for
$105,000, sold the home for $230,000 and then bought a home
for $300,000. The more expensive home went up in value the
next year more than the first home. You can build your real
estate wealth just by owning one home.

However, if you split your mortgage payments with other
people, you don't have to pay for all this equity on your
own. Your tenants will help you make the payments and over
time can actually buy the property for you!

How to Begin Real Estate Investing

Many investors start with a home to live in and then save
money for a down payment for their first investment
property. Here are some ways to skip the savings years,
which most people never accomplish:

1. Refinance. If your home has gone up in value, refinance
your home and use the equity for a down payment on an
investment house. You must have sufficient monthly income to
pay any negative between the rental income and the new
mortgage payment. Some home owners have been able to
purchase more than one investment house from one refinance
transaction.

2. Move. Another way beginning real estate investors get
their first investment is to buy a new home and rent out
their first home. If you have great credit, you don't need
to put a down payment into a new home to live in.

3. Sell and Move. You can sell your home and buy two
houses. Use your equity to put more down on the investment
house than your personal home.

4. Buy a vacation or second home. Our cabin tripled in
value in three years. We refinanced the cabin to buy more
houses and also kept funds to pay for the mortgage, twice.
The cabin pays us to enjoy it!

You can make money investing in real estate. Make a plan of
action and get started real estate investing.

Copyright Jeanette J. Fisher

Jeanette Fisher teaches how to get out from under credit
card debt, how to use credit to make money, and six ways to
build strong credit to finance your first home and multiple
investment properties. For free credit advice and free ebook
"Credit Tips for Mortgage Financing," see
http://worryfreecredit.com For real estate investing
information, see http://doghousetodollhouse.com

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