Posted by Shane on February 05, 2002 at 20:15:15:
Look into real estate investment clubs in your area. Start small and expand your portfolio slowly. Many new investors max out their borrowing power on rental income proerties. Short tern this provides you with little revenue and a lot of headaches. Do you really want to own a twelve unit that expenses $2500 a month and brings in $3000. Sure you have $500 a month in profit but if you have all of your credit tied up in that one property where do you go from there? What happens if a furnace breaks down or a tennant doesn’t pay? Don’t get me wrong rental properties are an excellent way to make money when the time is right or if your goal is one or two long term investments. However for the quick turn around think rehabs. Not major rehabs that require over ten thousand dollars in work. Look for properties that need updating. Painting,capeting, possibly some cabinets or a bathroom are relatively inexpensive updates that can dramatically increase the value of a home. Eventually major rehabs may be profitable and beyond that condo conversions can rake in some big bucks. Get involved with other investors and don’t be taken by the whole “you can make millions if you just buy my tapes for $99.99” scene. Any questions feel free to email me. I may have a few suggestions about clubs in your area. Shane