Real Estate Investing for Dummies Part II

Disclosure:  I am not paid in any way for reviewing this book.  I'd be the first to tell you that if you are interested in it, then check out your local library first. 

The second part of this book was about obtaining the capital to purchase an investment property.  

Basically it was all about mortgages...blah, blah, blah.  OK so for me it's no big deal.  I worked a long time in the mortgage industry so I already knew most of the information.  But for someone that doesn't know a whole lot, then it could come in handy.  

A couple of non-mortgage points that I really liked in this part were:

• Don't get suckered into the "No Money Down" thing.  If you really want to invest in real estate, then you need some money.  
• You need good credit.  If you don't have it, then work on repairing it.

Next part (and hopefully I'll have time to read it soon): Part III Finding and Evaluating Properties

Real Estate Investing for Dummies Part I

Disclosure: I am not paid in any way for reviewing this book.  I'd be the first to tell you that if you are interested in it, then check out your local library first.

Ok...so I finally finished the first part of this book. I usually don't take so long reading a book--any book--but I've had to squeeze this one in here and there. No biggie since I'm not ready to invest yet anyway.

The first part was pretty interesting. I learned some things, some I already knew, and others I just skipped because it really didn't pertain to me at this time.

The items they talked about that were obvious at least to me were to:

1. Pay off all your consumer debt
2. If you are a business owner, buy the building you are utilizing
3. Max out your retirement accounts

To me these all make perfect sense. We had a couple that lived a block over that built his primary home plus at the same time had two homes slated for rentals built on our street. Needless to say that was stupid. He lost all three homes to foreclosure just last year. So I should also add to that list above to never rush into investing in property all at once and never when you are also purchasing your primary home. Buy one property at a time and carefully plan each purchase.

Something I learned that helped validate what I was planning on doing was that single-family homes and/or apartments (4 units or less) are the top recommended choices for investment properties. My plan is to buy (one at a time and as I'm ready) in the town I currently live in and the one next door. This gives me more options of single-family homes, duplexes, and quad apartment homes. Plus I know the areas well.

Other good advice they give is to build a team prior to buying.

• Find a good tax advisor/accountant with property investment experience
  
• Work on a relationship with a mortgage lender or broker (thankfully I already have someone I can contact that I feel comfortable with)
• Find a real estate broker and agent with a solid track record in investment property transactions. He/she should also be a single agency representative meaning he/she will work for you and not the sellers
• An appraiser is extremely important when considering buying an investment property
• An attorney can be helpful and sometimes necessary

The next section to read is Part II: How to Get the Money

Real Estate Investing

I'm currently reading Real Estate Investing for Dummies.  I just started it today so it'll be a while before I finish it up and give my impressions on it.  

Investing in real estate has always interested me.  I think it started during my 8 years working for a mortgage company, though I really cannot pinpoint the exact time I began thinking about it.  Unfortunately, I've never done anything to prepare myself in all these years to begin investing in it.  And that is such a shame because I wish I had the money to invest now when there are so many foreclosures available.  I feel bad for the people that had their homes taken away, but at the same time the opportunities are tremendous for those that can afford to buy them.

So even though I do not as yet have the money to purchase an investment property right now, I am doing my research for when I am able to afford it.  At some point in time you will probably see a progression bar slated for real estate investment funds, which will sit at $0.00 for quite some time as my emergency fund, debt, and retirement will come first.