Real Estate Investing By The NumbersJust like most things real estate investing can be broken down into easy to learn step.
Step One - Learn
basics:
Ownership of real estate is evidenced by a valid deed. When you buy property
seller signs a deed that transfers his ownership interest to you. Most states use a Warranty Deed. With that deed
seller warrants that title to
property is as he has described. You would buy title insurance in case some defect in title was discovered after
transfer of ownership. Recording
deed is notice to
world that you are
new owner.
You must know how to correctly fill out such basic documents as purchase offers, deeds, options, leases and rental agreements. Many of those documents have been recorded in your county and you can see many expert examples by viewing your County Recorders files.
If you have borrowed money to buy
property
lender will record a mortgage or trust deed immediately after
Warranty deed has been recorded. This mortgage is a lien on
property and gives
lender power to foreclose if you violate terms of
loan, like stop making payments.
Step Two - Understand how to buy real estate:
Most sellers want to sell their property for full price and all cash. Investors generally want to buy at a discount and delay paying for as long as possible. To do that you must understand
many techniques an investor can use to satisfy
needs of
seller.
You only make good deals if
seller is urgently motivated to sell. Perhaps he has lost a job, been transferred, has a drug problem, is facing divorce, bought more house than he could afford... or a variety of other reasons why he/she must get out from under those mortgage payments.
You can control real estate with leases, options, subject to techniques and a host of other "creative ideas". To be successful you must understand which technique to use in which situation. You just talk to
seller until you learn what he/she will accept.
Step Three - You must uncover a steady stream of motivated sellers: