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Investing for Beginners

Jessie Cochran and Jennifer Mackay

I bet you've said to yourself at one point or another: "How do I get into Real Estate Investing." or "I wish I could Invest in Real Estate, but it's too expensive."  Well, let me assure you we all have to start somewhere.  Even the most successful, experienced investor had to start from the beginning.  You are not alone!

With that in mind, this article is offered as a suggestion to those of you who have always wanted to buy real estate for investment but weren't quite sure how to start or who to ask. 

Real Estate Investing - The Basics

There are many types of Real Estate Investments available.  For this discussion, we will focus mainly on the basics.  As we progress, we will incorporate additional discussions on multi-family units, REIT's, Commercial Investing and so on. 

At times the Terms and Calculations may seem overwhelming, but don't be discouraged!  With a little patience and assistance we'll get through the basics together.

A few ground rules...

First we must realize that unlike stocks or bonds investing, Real Estate Investing is not considered a 'Liquid' investment.  What this means is, you can not sell Real Estate as quickly as you can sell stocks or bonds.  Stocks or bonds can typically be traded very quickly through a brokerage firm.  Real Estate however, requires skill, patience, a marketable product and technique to liquidiate.  Even when using a Real Estate Agent, it may take awhile to sell investment property

Realizing this at the beginning of your investment strategy will save you grief and money during the life of your Real Estate Investments.  Knowing you can not simply 'Flip' (the process by which you can buy and sell Real Estate Property very quickly) every investment opportunity that comes along will help you make sound investment decisions.

Investment Financing

Before you begin to look for Investment Real Estate, it is advisable to discover how much you can afford.  The easiest way to accomplish this is to find and work with a Real Estate Agent who knows the area in which you are interested in purchasing. 

Working with a Real Estate Agent provides you with several benefits, not the least of which is helping you get financially qualified to purchase with a Mortgage Company.  If you do not know a Real Estate Agent in your area and would like me to recommend one for you, contact me and I will find you a qualified Real Estate Agent in the area you would like to purchase Real Estate.  I have Real Estate Agents whom I have worked with all over the United States.

Investment Strategy

Long term or Short term Investing:  Let's describe Long term investing as Real Estate purchases that you will maintain for longer than 5 years.  Short term investments we will consider purchases you will maintain less than 5 years.  The length of time for either of these strategies can vary greatly depending on market conditions and income/expense ratios from the investments.

Along with your investment strategy of long or short term investments, an advisable consideration is what do you expect from a Return On Investment (here on out referred to as ROI) perspective.  ROI can best be described as how much money do you expect to make on your purchase and in what time frame.

Real Estate Investing requires education, working with experienced Real Estate Agents and lots and lots of homework.  If you take your time, work with a knowledgable agent, there is no reason why you would not be able to realize the financial gains others have realized in Real Estate Investing.

Additional topics for this article include:

Terms and Calculations of Commercial Real Estate.

Multi-Family Properties

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Jennifer Mackay REALTOR®
Keller Williams Success Realty
2110 W. 23rd Street, Suite A. Panama City Fl 32405
Direct: (850) 774-6582
Office: (850) 392-1700
Fax: (850) 522-3697
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