How to Get Started in Real Estate Investing - Capital Direct Funding

HOW TO GET STARTED IN REAL ESTATE INVESTING

INTRODUCTION 

Investing in real estate has become a popular way of building an investment portfolio.

Historically, real estate investments perform better than some other kinds of assets.

TIPS OF REAL ESTATE INVESTING        

Take stock before you invest Analyze profitability of available properties Shop for a property Make your offer Understand the meaning of real estate investment trust Purchase shares in an REIT Understand the meaning of private money lending Generate the proper loan documents

TAKE STOCK BEFORE YOU INVEST 

Investors should know how they intend to dispose of any property before they buy it. These options have different implications when it comes to financing and taxes; you’ll need to have a general idea of what direction you want to take at the outset and be ready for contingencies.

ANALYZE PROFITABILITY OF AVAILABLE PROPERTIES ï‚¢

Before diving into the purchase of a property, make sure it is going to be a profitable investment. Evaluate your operating expenses and the amount of rent or income you expect to receive.

SHOP FOR A PROPERTY 

Start by looking at the properties listed on the multiple listing service (MLS). You can find the MLS listings on websites like Realtor.com, Trulia, or Zillow. You will find all of the same listings on your own on the MLS that a real estate agent could find for you. However, it’s still a good idea to work with a Realtor.

MAKE YOUR OFFER 

Work with your real estate agent to determine a fair price for the property. Also, write in contingencies for inspection, financing, and any other contingencies that your Realtor or lawyer advise.

UNDERSTAND THE MEANING OF REAL ESTATE INVESTMENT TRUST ï‚¢

REITs are companies that own or manage commercial real estate. They allow individuals to profit from real estate income without having to purchase commercial real estate

PURCHASE SHARES IN AN REIT 

Contact a broker or financial planner to find the right REIT investment for you. REIT investments can be purchased through a variety of different avenues. Some are publicly traded on a stock exchange.

UNDERSTAND THE MEANING OF PRIVATE MONEY LENDING ï‚¢

Private money lending means lending your own money to another investor or to a professionallymanaged real estate fund. This might appeal to you if you have already made some money with your other real estate investments, and you are looking for a way to re-invest some of those funds.

GENERATE THE PROPER LOAN DOCUMENTS ï‚¢

The paperwork involved in a private money loan is similar to that of a typical loan from a bank.

The borrower must sign a promissory note, which is a promise to repay the loan.

WHO I AM.. 

Capital Direct Funding is a financial loan company that provides the help in real estate investing , sale and residential marketing in West Covina.