How hard is it to invest in your first real estate home and build wealth?

Question

Is it really complicated or can anyone do it, but they're just afraid like most people say so?

Answer 1

not hard at all, just stay committed and focus, and make a goal time line.

Answer 2

I would advise you keep your money in the bank right now, The housing market is in a meltdown and it is no place to park your money.

Example_ House prices are now so high that the cost to service the mortgage is now far higher than any potential rent money. Thus - overpriced.

Most markets have experienced a beautiful increase in value during the last 5 years. We may not have a full on Bust but I doubt we will see continued increases like in the past. I say this because we have reached a point where first time home buyers have been locked out of the market (unless they take on variable or interest only mortgages).

Historically, real-estate is a solid but not sexy investment. The returns are actually very low over the long term. You would make more money in equities for the long term. This said, you may be in a market where housing is still HOT!

My area has 3 times the amount of houses up for sale than 1 year ago. The median house price dropped 4% in October. Houses are on the market for months before they move. All of this points to further price drops in the future.

I hope this helps.

Answer 3

For me it was difficult mostly because I was afraid to do so, and I didn't make a lot of money. Then, later in life, I had saved money, in a crazy sort of way, and then it was "a piece of cake" because I had plenty enough money to build a home in a wider range of locations. But then, my son-in-law buys and sells homes like it's nothing, and makes a profit at it too, and he's not even a realtor or builder or anything related to the housing industry. Oh, his mother was a realtor so maybe he didn't have the anxiety about it all that I did, and he developed a skill at building and so he built a couple of his homes and sold at a profit. I think a lot of it has to do with how ready you are, financially, mentally, emotionally, etc., to take on owning a home and paying for it. I was too much of a "Lone Ranger" to want to settle down, and so I never did and never prepared to do so, and I was brought up in a much more pensive family and so I was way more reluctant to do things than others might have been. Just stay focused as CeKaye L says in her answer, and do your research as daniel foster's answer says, and be patient as he says too. And don't scare yourself to death about it. My experience now is that it's as methodical as buying a car, only bigger, and you don't need to miss out on so much due to anxiety. God Bless you.

Answer 4

Anyone can do it with the capital and patience to begin. Research the area you are looking in very well, and look for the best deal you can find. A lot of investors will buy homes that aren't in good shape so they can get a better deal on them, fix them up for a smaller price, and sell them at a profit. Just remember there are always risks involved - as in any investment opportunity. Every transaction will also involve cost - including title insurance, agents commission, etc. - so don't expect a short term gold rush.

Research research research!

Answer 5

It is not too difficult. You just have to be aware of your market. If you are looking to flip homes then you should look for foreclosures and REO's. It will definitely take time to find the right deal. You have to build a strong team consisting of realtors, contractors, mortgage consultant and a great lawyer. You also have to familiarize yourself with the business from the view of your team and know enough about these fields.

Answer 6

i understand somebody that purely went to artwork for an belongings agent in London. He grew to become into making coffees and stuff. 5 years later he have been given the draw close of it and offered his very own residence. 7 years later he owns 35 homes, each and each of it being properly worth approximately 0.5 one million uk pounds. In all it particularly is approximately 35 million money yet he's no longer combating, all residences are rented out and he's procuring approximately 15 new residences each year. He has no college skills, he purely sussed out a thank you to get his very own loan from the financial corporation for the 1st abode and then he repeated it. He says the 1st one grew to become into the perplexing one, now banks like to lend him money.

Answer 7

Nothing hard about buying a first home. Either you get financing somewhere or you don't. What's so hard about that?

It will be harder to make the payments on the loan til you sell it for a profit, or if you rent it be fully prepared to have renters NOT PAY you and you will have to pay the payment yourself.

Jump in !

Answer 8

Keep in mind...........

Times and markets are changing!

In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???

This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.

From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!

With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!

For some great 'insider' articles on the San Diego real estate market, which I beli
eve will apply to any of the hot real estate markets of the past five years.....visit:

http://www.brokerforyou.com/brokerforyou

http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm

http://www.brokerforyou.com

http://www.san-diego-for-sale-by-owner.com

http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us

http://www.brokerforyou.com/blogger/index.html

http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://www.brokerforyou.com/san-diego-real-estate-sales.html
http://www.poway-real-estate.info
http://www.del-mar-real-estate.info
http://www.la-jolla-real-estate.info
http://www.los-angeles-real-estate-brokers.com
http://www.san-jose-real-estate-brokers.com
http://www.orange-county-real-estate-brokers.com
http://www.san-francisco-real-estate-brokers.com
http://www.sacramento-real-estate-broker.com

Answer 9

With teeth like that, your're gonna have trouble.

Answer 10

don't go for any of the bs give me 39.99 and i'll tell you my ???????????????????????????????????????