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Real Estate Investing FAQ – How To Get Started
By Tom Dunn | August 30, 2008
As a writer and real estate investor, I get asked a lot of questions over and over again. As a result, I have tried to keep track of those I hear most often, and add them to a list of “frequently asked questions” (FAQ), or real estate investing FAQ. I’ll handle one of them here.
First, the real estate investing FAQ I hear more than any other is, “How can I get started in real estate investing?” By itself, this wouldn’t be such a tough question, but it usually comes attached to a second – but no less important – question… “With little or no cash or credit?”
Ah, there lies the real problem. For somebody with a good supply of cash, credit, or both, real estate investing is not all that tough to get started in. But once you throw in the combined difficulties of zero cash and a poor credit rating, things become measurably more difficult. So, here’s the answer I usually give to a would-be investor asking this real estate investing FAQ.
First, I tell them to be encouraged, because thousands of investors have gotten started without cash or credit.
Second, I advise them to find and join their local Real Estate Investing Club or Organization. Most major metro areas have one, and even if you have to travel to get there, it’s well worth your time and effort. In most areas, this will be a REIA group (Real Estate Investing Association) and you can probably find them on the internet with a little diligent searching.
Failing that, start by talking to several of the local Realtors in town, and try to find one who works extensively with investors. Once you find that realtor, he or she will be able to tell you where the local investor’s club meets. Go to a meeting and start talking to other investors.
If you live in a small town or rural area where there is just no club, you will need to be a little more pro-active. Start your own group. Let your new Realtor friend know you would like to do this, and ask him or her to help you. You only need a handful of investors to get a group started, and it first, it can be a very informal set-up. Just pick a place to meet, let people know by word of mouth, and start. Take action, and you’ll be amazed at what happens!
At the meeting, meet as many investors as you can. As a rule, we’re a pretty friendly bunch, and you’ll soon find somebody you can talk to, who has some experience you can learn from. What you’re looking to do is form a loose partnership with this person, and often the best way to do that is to offer to help them find properties, called bird-dogging. Basically, you will locate properties for them and they will pay you a fee for doing so.
This is a great way to break into real estate investing, get some valuable experience, and build your reserves of cash for your own future investing. Don’t worry, your new investor friend will tell you what to look for, and where they like to buy. If they don’t share information, find a different investor to work with. After all, this is your education we’re talking about.
I can’t emphasize this enough… there really is no substitute for finding other investors to build relationships with, work with, and learn from. If your real estate investing FAQ is “How do I get started in real estate investing… with little or no cash or credit?” you need to get connected to the active investors in your area FIRST.
Hopefully, I’ve given you a good first step. If you don’t act on it, it will be worthless to you. Remember though, it’s only the first step. There are others, and future articles in this series will cover other real estate investing FAQ.
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