Often the number one question new investors have is, “How do I get started in real estate investing?” This is the fundamental question to unlocking the potential of a potentially lucrative business of buying, selling and holding real estate. It does take a lot of research and hard work to get to the level of seasoned investors. But even they had to start from the beginning, and having an experienced real estate agent who will listen to what your plans are and who is willing to work hard for you. for the long term is a must.

Knowing your financial position is the first matter to consider before becoming an investor. Your credit rating should be in good shape to get the best financing deals. If your credit rating is less than optimal, a loan is still possible but the terms may not be as desirable. You may also have to find other more creative, ways to obtain property.

Once you know how much you can afford and you have determined your financing options, it is then time to research the market. Your aim is to find the best deal for your particular financial situation and your lifestyle. Do you want to purchase so that you can rent the property or do you want to purchase so that you can upgrade the property for re-sale? Do you want a fixer upper, or do you want to purchase and then just collect the rent? What type of landlord do you want to be? High rent district? Or buildings in less derisible locations that cost less to purchase but rent for less money also?  

You need to know about the city or town you plan to invest in.  This includes the neighborhood, especially if the property in mind is requiring upgrades.  You also will want to know about the local ordinances, building codes and local government, schools and public services.

You will have more leverage to get a good deal if you have money to put upfront. Motivated sellers prefer buyers who are ready to close on a deal. This can often lower the actual sales price.

The key to becoming a good investor is learning how you are going to turn a profit. You must learn your particular buying and selling markets and be prepared to research all properties and options. You must also know the different types of properties that are available and what you would like to buy. The options are many. There are multiple unit dwellings, distressed property, fixer uppers, and repossessions, direct sales by owners or condominium sales. Some beginners will find their best deals in repossessed or distressed property but often these properties will need many repairs and upgrades. Who is going to do the work?

Bank owned properties or REO’s are another viable option. Banks do not want to keep REO’s on their books. They are very motivated to sell these properties, but they need to sell at or close to market value. Many will even provide great financing terms to unload the homes. Understand the financing and lending terms first. Try to go for conditions that don't have points or require any extra fees.

Your agent using MLS or multiple listings can locate just about every type of listing in one place. There are bargain deals out there but you as a buyer need to know how to recognize a good deal. When a property has been listed for an extra long time, the seller may become more motivated to get sell the property and move on. These are great situations to buy low and sell high. If you and your Realtor can set up a quick transaction with the owner then the better the deal will be. Home sellers appreciate a quick, fair transaction that may end up being the deal of a lifetime for a first time investor.

It takes experience to finesse the right deals but with a trusted agent’s research and practice beginners will quickly learn the ropes. There are a lot of ways to make money in the housing market and a lot of people want in on the deal. Flipping properties grow in popularity, due to the down turn in the economy as well as all the reality shows featuring this technique. As you grow as an investor, you may decide to get into rapid turnover of properties. This involves buying houses that need some repairs, correcting those repairs then selling at a profit. Buying a distressed or under valued property in a good neighborhood can help make this work.

There are many ways you can go when answering the question how do I get started in real estate investing. Find out what works best for you and make it happen.