12-Month Plan to Becoming a Real Estate Investor
Following up on David Crook's Wall Street Journal article on becoming a real estate investor is his outline of a 12-month plan that outlines the foundation you'll need.
Of particular note is how the "beginning [in real estate investment] actually starts well before you're ready to buy a property." Here's his table on getting started:
Use Other People's Money
Key to this plan is the concept of leverage, where you use other people's money to accomplish your real estate plans. They get cash in the form of interest for the privilege and you get the use of their money.
It's Just Like Buying a House... Mostly
You can buy a property of up to four units in the same building under the same rules and financing you'd use to buy a house.
It's important, though, to remove your emotions and personal value judgments from the property you're investing in.
You may think, for example, that the property is in a neighborhood you wouldn't live in, that there aren't enough bathrooms, or that you'd rather have hardwood than carpeting.
But unlike your search for a home, your search for an investment property isn't about you: it's about your customers and "the math."
Related reading: Getting Started as a Real Estate Investor
Coming Soon: The Math That Makes You Money With Investment Property
