Yellow Star Properties

Best Type of Property for 1st Time Real Estate Investors?

by Fortune Builders:

What is the best time of property for those new to real estate investing to start with?
You have just finished your real estate investing education program and you are full of inspiration and passion to get out there and make money. So what type of property or deal should you take on first?
Perhaps we should start with some of the things you may want to avoid on your first deal while you get your feet wet and get a better feel for the business.
You may want to avoid:

• Major rehabs
• Homes with structural issues
• Complex commercial property deals
• Taking on a lot of debt which requires large monthly payments

The best place to start real estate investing really depends a lot on your experience with real estate, your resources and which types of properties you are most familiar with.
Don’t Own a Home Yet?
Owning a home isn’t a requirement to start real estate investing but going through the process yourself can teach you volumes about the business. A great way to get started is by buying a multifamily property like a duplex which can give you your own piece of the American Dream which is paid for by the tenant or tenants in the other units. This may not snag you thousands tomorrow but the hundreds or thousands you save on your monthly housing payment can be used to fuel your real estate investing while your property builds equity which you can cash in on to buy your real dream home later.
Low on Cash & Credit?
If you don’t have much cash to invest, your credit isn’t great, your tolerance for risk is low and you need to make money fast then assigning or flipping contracts may be the best move. This means no need to borrow money or be a master of marketing yet. Simply find great real estate investing deals and pass them off or partner with other investors who have the experience and resources for a quick payday.
Properties & Real Estate Investing Strategies You are Familiar with
May be it is purchasing a vacation home in your favorite holiday spot which you can use and rent out for a profit, investing in student housing where your kids go to college, the strip mall your office is located in, the house down the street you know you can get for half of what it is worth and that you know you can resell easily.