Real Estate Investment 101 – A Beginner’s Guide
“Buy land, they’re not making it anymore.” Mark Twain
Real estate can be very rewarding both financially and personally. However, there is more required to make money in real estate than watching all the “fix and flip” shows on television. Investment in Real Estate requires discipline and hard work. Real Estate is not a “get rich quick” business.
This 4-hour course will give you a set of tools along with REAL WORLD examples to help get you started on your road to Real Estate investment.
We will first review the core concepts then work through the analysis of an actual property.
1. You have decided to invest in Real Estate. Now what?
a. Discuss your plans with professionals (Attorney, Accountant, Financial Advisor).
b. Determine how much you can afford to lose!
c. How will you finance your project(s)?
i. Personal Funds
ii. Bank Loans
iii. Private Equity – Approach carefully and with help of an attorney.
v. Combination of some or all
2. What is your strategy?
a. Commercial or Residential
b. Target Market
c. Long Term (Rent) vs. Short Term (Dispose)
3. Put your TEAM together.
a. Consult with professionals.
b. Ask for references.
4. Go find your first project.
a. Training wheels / Low Risk Property.
b. Path of Progress.
5. The 1% and 2% Rules.
6. Internal Rate of Return (IRR).
7. Prepare your Proforma.
8. Real Estate Investment Trusts (REITs).
9. Tax Considerations.
a. Basis in Property
b. Capital Gains / Losses
c. 1031 Exchanges
10. The Project Notebook.
11. Case Study – Putting the information into action!
12. Q&A Session
A. PowerPoint Presentation Slides with Discussion Points.
B. Excel Spreadsheets for basic financial analysis.
C. Project Notebook Example.