Real estate investing usually begins with the purchase of a house, rather than raw land or commercial property. The purchase of a relatively inexpensive house for rental or fix-up purpose is usually lower risk than any other type of real estate investment. And the return on investment can be quicker than from any other type of real estate investment.
Even with the previous acquisition of one or more personal residences spread over past years, the thought of buying a house as a real estate investment can be intimidating. Even though a personal residence acquisition is usually identical with a real estate investing acquisition, the two are seldom envisioned as similar. True, the ramifications of real estate investing property is different. Investing in houses must involve different considerations, such as improvements, usage, and re-sale. But the actual purchase does not differ from the closing procedures for a personal residence.
The first house in a real estate investing career can be scary because it is the beginning of a new business venture. The would-be real estate investor usually recognizes that mistaken judgment can have disastrous consequences. The lack of experience prompts misgivings about the unknown. Genuine confidence is necessary to make the decision to follow through after the preliminary analysis is completed. In fact, it seems to me that real confidence – in contrast to egotistical bravado – is a personality ingredient prerequisite to entry into a real estate investing career.
I was admittedly fearful as I bought my first investment house 25 years ago. I had little valid instruction in making that first purchase. But I was driven by an intense drive to actualize a career I had envisioned for some time. I was like so many would-be investors I have encountered during the intervening years. They keep walking around the pool, dipping their toe into the icy waters, afraid to suck up and take that mighty leap out into the pool’s cold water. But after I bought that first investment house, I bought another and another. Each acquisition got easier and easier. I bought $1 million in properties the first year, and another $1 million in properties the second year. By that time, I knew I was on the way to success. Acting on my fears led to faith in my abilities. And faith and fear cannot remain in the same mind at the same time.
The greatest challenge in my real estate investing career was the purchase of my first house. It might be your greatest challenge, too. But know-how can displace the intimidation, and lead to positive satisfaction in real estate investing.
Phil Speer, Ph. D. , started his real estate investing career without the availability of credit or cash. Using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. His net worth was $2 million in only his third year of investing. He was featured in a Wall St. Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.CashinHouses.com/ . Subscription is free to his Fix-up Ezine - http://www.AAREIT.com/ .