Real Estate - 7 Ways That Can Get You Started On An Investing Career

Before you jump into real estate investing, it's important to set up your foundation development

. This means studying the market in your area and finding people you will need to work with (agents, mortgage brokers, loan officers, repairmen, and so on). Set a firm foundation so when you see a great opportunity, you can jump on it right away. These following seven steps can get you started on your investing career:

(1) Fix your credit rating. Your credit rating can directly affect your ability to borrow money, so it literally pays to have good credit. If you have a poor credit rating, you can still invest. You just will have a tougher time getting a loan than someone with a better credit rating. The first step to fixing your credit rating is to pay off your credit card debts as much as possible because when banks see that you're making regular payments, they'll gradually boost your credit rating.

(2) Decide where to invest. You know your neighborhood better than any outsider, so that's the best place to start investing. If your neighborhood is getting worse, choose a nearby area where you believe the opportunities are better. Just make sure you start with the most promising area with prices that you can comfortably afford.

(3) Build your investment team. You will need help from other people. You'll need an escrow officer or mortgage broker to help you apply for and process a loan. You'll need an agent, who can often give you background information about a piece of property. You'll need an appraiser to tell you the value of the property. A home inspector can help you spot problems. An accountant to help with your taxes. An insurance agent to insure any properties you buy. An attorney who can advise you on legal matters and home improvement contractors.

(4) Get prequalified for a loan. Nothing is more frustrating than finding the perfect opportunity but not having the money available to take advantage of it. That's why you should get prequalified for a loan so you know the maximum amount of money you could borrow from a bank.

(5) Home equity line of credit. If you own your own home, apply for a home equity line of credit. This will determine how much extra money you may have available. If you don't own a home, find someone who does and who would be willing to work with you in real estate investing. Then find how much money they could borrow on their home equity.

(6) Find other sources of money. After you've identified how much money you can borrow through traditional sources, it's time to discover how much money you can borrow through nontraditional sources, such as friends or relatives. The more money you can access right away, the faster you can move when you spot a real estate bargain.

(7) Study how promissory notes work. Promissory notes are legal documents that let you borrow from other people. A promissory note is no different than a traditional bank loan. You need a lawyer to help you write a promissory note. It's a valuable tool that can help you borrow money quickly from sources other than banks. The more you understand how promissory notes work, the more they can work to your benefit.

Copyright (c) 2010 Colon Bolden

by: Colon Bolden

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