Real Estate investment

             Real Estate investment

Over the many years that we've been serving real estate investors, one of
the most asked questions on our site has been, "How Do I Get Started in
Real Estate Investing?"
People from all over the world have been coming to BiggerPockets.com to
find the answer to that question and over the years, we’ve helped millions of
investors connect, make deals, learn, grow, and prosper by answering those
questions amongst thousands of blog posts, forum conversations, articles,
and conversations. However, there has not been a definitive guide that
simply answers the big-picture question of “How Do I Get Started?”
Although some might lead you to believe that there is a simple answer that
works for everyone, that simply isn't the case. We've built this guide to help
simplify the process of figuring out how YOU can get started. Of course, this
guide is not an all-encompassing "how-to" manual about every aspect of real
estate investing (that would be tens of thousands of pages long!), but a
broad-stroke overview of the best ways to start down your path to financial
freedom through real estate investments.

How to Invest In Real Estate

"Ninety percent of all millionaires become so through owning real estate."

-Andrew Carnegie

Income:

Income is simply the amount of money that comes in from a property. This

math is perhaps the easiest of all: simply add up the amount of rent and any

additional fees that comes in.

For example – you own a rental house. The home rents for $1000 and the

tenant also pays $25 for the use of the garage.

Your total income was $1,025.00.

Income could also include late fees, application fees, pet fees, laundry or

other vending machines, or any other value you receive from your rental.

Expenses:

Expenses are simply the things that cost you money on an investment. For

example, the garbage bill for a home is $50 per month, the loan from the

bank was $500 per month, and maintenance was $100 per month. The total

of these three expenses is $650.00.

Your total expenses for this example were $650 for this particular month.

Keep in mind that there are many other expenses that you'll face as a real

estate investor, including things like taxes, insurance, management, holding

costs, capital expenses and various others.

Cash flow:

Cash flow is simply the amount of money left over at the end of the month

after all expenses are paid. To determine the cash flow, simply subtract the

total expenses from the total income:

Your total cash flow in the above example property was $375.00 for the

month. Let's look at a few more math equations.

Real Estate Investing Mentors:

A mentor is an individual who comes alongside you to teach and instruct

based on their first-hand experience; they are someone who has lived the

life before – walked it, talked it, and breathed it. Finding a mentor and

learning from those who have come before you is one of the most important

steps you can take in your real estate investing education - yet perhaps the

Ultimate Beginner's Guide - Smashwords

most misunderstood. This section is going to focus on what a great mentor

is, how to find one, and it will look at the question “should you pay for one?”

Non-Real Estate Mentors in Your Life

In your life, who have been your mentors? I'm not talking just real estate –

but life in general. There are a number of different individuals who may have

served in a “mentor” role at one time or another such as: