I'm purchasing my own home and in about 4 or 5 years I hope to be able to purchase one or two more - and grow from there. What do I need to know to begin a real estate career? Is it better to rent houses out OR try to sell them for a profit? What are some of the best resources (especially online) for real estate beginners?
the best way to check out real estate is to watch the real estate section of the news papers. Watch the prices of the sales of homes in the areas you are interested in. You can buy real estate cheap by going to auctions and forclosures. These require money up front, but they are the best buy. I bought a parcel of land for $1,660. at auction and it was assessed at $21,000. I then paid to have the title cleared and the total cost to me wae $4,660. I had instant equity of $16,000. That I could borrow against. The property sold a few years later for $110,000. % years to be exact. go to your local tax office or the tax office of the town or where you want to buy property and ask about tax auctions. Read up on liens and how to clear them. Some can not be cleared unless satisfied. some can be 'quieted' speak to an real estate attorney about it. good luck..
It depends on the house. If the house in question is sold to you cheap and you can turn around (flip it) in 2 - 5 months for a substantial gain, then that is the best way to go. however, if the house in question is a flat or multi-family building, then renting out is the answer. just remember, at the end of the year if you still own these properties, the tax-man will come knocking on your door.
There are no good online sources for you to learn real estate. The best place to start is at your local junior college. Take the real estate classes that they offer. Get to know the instructors. Offer to help the instructors for free in their business for the purpose of learning the business. One very important skill to learn is how to determine the true fair market value of a property. The best source for that is The Appraisal Institute. Contact The Appraisal Institute and tell them that you want to learn to be a real estate appraiser and that you want to earn your MAI (Member of The Appraisal Institute) designation. Take all of the training classes offered byTheAppraisal Institute and go to work for a firm that is owned by a Member of The Appraisal Institute. Earn your MAI designation. This is the best foundation that you can get for a real estate career. You can then get your real estate brokers license,, which is easy to get, and sell real estate, invest in real estate or you may decide that you wish to stay on as a real estate appraiser. If you do what I have outlined for you, you will have a better foundation than 99% of the people out there who are running around with real estate licenses but do not know what they are doing. With respect to renting or selling houses. I have been investing in real estate for 40 years. I do not recommend that you sell realestate if you do not have to. I recommend that you build up a portfolio of rental houses and keep them. The rent that is paid is a good stable source of income, and the houses appreciate in value. I wish you great success with your new career.
