The economy of the United States suffered a heavy blow a couple of years ago and major companies were forced to declare bankruptcy. Many people found the house’s value going down, some even lost their houses. But now after a tumultuous turnaround, the economy is picking up again. Now that the prices of houses are being restored, many are considering it as a new investment. So with this in mind, why not become a real estate investor?
A real estate investor buys a property, spruces it up, and then makes it into an asset by selling it once more. Investors do this with both private properties and commercial ones. This is similar to the way McDonald’s, the famous hamburger chain, makes a property valuable, not through the goods they sell but with the building.
Training and Requirements Needed for a Real Estate Investor
So to become a real estate investor you must undergo the following training and requirements. First is that you must have the sense to know which house or property is worth investing in. You need to know how cheaply you can get a house so that you can make a legitimate profit. Remember that your objective is to buy a house that is way cheaper – around 5k to 10k – so that you can sell it for more.
But how do you find a house at such a low market price? Here are some points to consider if you want to become a real estate investor.
Things to Research:
1) Determine the Value. To evaluate your house values you need to talk with realtors who work in your investing area and ask them if they can provide you with a list of houses which sold off in the MLS over the past three months.
2) Find out the cheapest properties that have been sold, look at how many bathrooms and bedrooms they have, the size of the structure and the area, the location, the year it was made, and see how much work a property needs.
3) Check out the price per square foot on the most inexpensive properties.
Evaluating a Property:
1) Get a list of properties for sale from an agent. Tabulate the statistics on the different types of houses. Focus on one building type; for example, look only at 3-bedroom 2-bathroom houses.
2) From your realtor, get a list of active houses of the same type in your investing area. Find out how much those houses sell for. Now, compare that selling price to each of the houses on your list of buyable properties. The difference between the two figures is your potential profit if you buy and sell the property.
3) Call some contractors and see how much it will cost to fix the properties. If they quote low enough that you can still turn a profit from the property, then go for it.
You can become a real estate investor with a couple of courses on business management and economics.