subject: Real Estate Investing Requirements Trimmed Down [print this page] Television shows on fixing and flipping houses made real estate investing look simple. A little paint here, a new doorknob there, and that house is ready to give you thousands of dollars in profit. Frankly, rehabbing, or any form of investing in real estate takes more than that. Decide whether you want to try this kind of investing after reading the following requirements.
This business requires huge capital. Do not be misled though. When we say huge capital, that doesnt mean the money should come from your own pocket. A lot of successful real estate investors began in the business with hardly any money in their wallets. This is because you can tap credit from various sources nowadays.
For those who have a good credit score, you can try applying for loans from banks. Beware though as securing loans from traditional lenders like banks could take time. They need at least 30 days to process applications and if you just dont have the luxury of time, you might want to seek financing from other legit means.
One thing you can try is hard money. This kind of financing is processed in just a matter of days. Hard money lenders also release loans even to those who do not have perfect credit scores. The only downside of hard money is the interest rate, which is usually twice that of traditional lenders. Real estate investors actually do not mind this as what matters to them is getting the money fast to close a deal and earn enough cash to repay the loan.
Another requirement you must fulfill if you want to venture into real estate investing is education. Are you equipped with the right knowledge? Remember that you are dealing with huge money and that a mistake can literally drag you into bankruptcy. The business should not be feared because of this fact though. Instead, real estate investors should take it as a challenge. If you know real estate investing by theory, all you need to do is apply it. The problem is if you lack this background.
The solution? Educate yourself. Read books and articles about real estate investing. Go online and check websites like rehab-real-estate.com. It features articles and videos you will surely find useful, especially when starting in this field. Getting a mentor will also help.
