Sadly, some people think that it is fine to just find a house, buy it, and then turn around and sell it for profit without getting any form of education in real estate investing. This is true only if you are lucky enough to not run into any problems that most real estate investors do on a daily basis. For most people, education in real estate investing is important to avoid all sorts of headaches, or worse.
Firstly, there are many more real estate investors nowadays than there used to be. Competition is fierce for the few homes that are profitable. When there is a good home to invest in, it is likely that there are lots of investors looking at it already. Education in real estate investing will allow you to detect which homes will be profitable to invest in.
Finding a good home is not the only challenge facing new investors, home inspection is even more important. Having education in real estate investing will help you determine for yourself if a home is as good as the seller says it is. Without proper inspection, you can end up with a bad deal after all.
Many homeowners are so happy to find homes that they like, they fail do proper inspection on the homes and soon, they find themselves in homes that they can no longer live in. The home could have a bigger foundation problem than first appeared, the roof could be falling apart, there could be mold in the home and it could even have lead based paint in it. Some things are hard to replace and expensive to repair. Only with good education in real estate investing and/or experience would you know what to look for and what questions to ask.
Sometimes, you find a good property but you have problem with financing. Education in real estate investing will teach you in detail how to find funding for your investment properties. Traditional mortgages are not the only solutions. There are plenty of creative financing methods to help you buy a home. There are also hard money lenders if you need them.
Overall, getting education in real estate investing is important so that you will not fall for traps that many new real estate investors fall for. There are more investors end up wasting time and money than actually profit from their investments. Get some education in real estate investing before you start to save yourself from lots of common problems.
Step 1: Check Your State's Requirements
Each state has their own Appraisal Regulatory Board that administers and regulates the licensing and certification of appraisers.
For the most part, the pre-requisites should be fairly uniform as they are set by the Appraisal Qualifications Board or AQB of the Appraisal Foundation.
As of January 1, 2008, to become a licensed residential appraiser you will need:
? 2,000 experience hours
? 90 education hours
? pass the exam
To become a Certified Residential Appraiser, you will need;
? 2,500 experience hours
? 120 education hours
? pass the exam
To become a Certified General Appraisal, you will need:
? 3,000 experience hours
? 180 education hours
? pass the exam
Step 2: Take the Required College Courses
The new requirements as of January 1, 2008, to become a Certified Residential Appraiser can be met with either an Associates Degree or higher in any field of study or you can take 21 hours in specific fields.
To become a Certified General Appraiser you will need a Bachelors Degree or higher in any field or 30 hours in predetermined fields of study including:
? English Composition
? Principles of Economics (Micro or Macro)
? Finance
? Algebra, Geometry, or higher mathematics
? Statistics
? Various Computer Courses
? Business or Real Estate Law
Step 3: Take Required Appraisal Courses
On top of the required college coursework, you will also be required to complete a core curriculum in appraisal courses in the following modules:
? Basic Appraisal Principles
? Basic Appraisal Procedures
? Residential Market Analysis
? Highest and Best Use
? National USPAP Course
Some places will teach you principles you will need to be successful in your career. Others will simply take your money and teach you how to pass the state test. Both are important, but learning the principles properly will be better for you in the long run. Keep this in mind when searching for your appraisal school.
Step 4: Find a Mentor
As state earlier, along with the education hours you are also required to have experience hours. You will have to find an appraiser who is in good standing to train under who will sign off on your work and serve as a mentor. Basically, you will have to treat this as a job search and eventually an interview. And, network with as many people as possible.
You have to bring something to the table that can help that appraiser with his or her business. Maybe you have a client in mind you can bring in to start doing work for. Maybe you are up-to-date on new technology or computer software that can make that appraiser's job easier. Whatever it happens to be, you must be steadfast and diligent. Knock on enough doors and you will find your mentor. If you are apprehensive, considering taking personal growth and development classes like those offered online at Success University.
Step 5: Study Hard and Take the State Test
The state test is difficult and I heard through the grapevine they are going to make it harder. To get an idea and see some sample questions, go to http://psiexams.com . This is the company who administered the test in Louisiana and more than likely does it nationwide but don't hold me to that. Now I think it is available online but I'm not familiar with the procedure as I took it at a certified testing facility. Either way it is difficulty ? study hard.
Step 6: Apply for Your Appraisal License
Once you've taken the required coursework, completed your experience hours, and passed your state's test, you will now be ready to apply for your appraisal license.
At this point you are probably asking yourself if all of this is worth it. That's a question you will have to answer for yourself. The opportunity and the money is there for those who are persistent and willing to sacrifice to go for it. None of this is easy but it is all worth it in the long run.
Not to discourage you, but one thing nobody told me what that on top of all these requirements there is also a fee for everything! You will pay a fee to apply for your license, to take your exam, to have your experience hours reviewed and a fee to renew your license every two years.
As always, check with your state regulatory board on what forms and fees are required. Keep good records and especially keep up with your experience hours as you go.
Step 7: Continuing Education
In the appraisal profession we are required to take 30 hours of continuing education over a two year period. Our licenses are good for two years so license renewal basically coincides with continuing ed. You can opt to take 15 hours of continuing ed per year if you wish.
Personally, I took my continuing ed online at http://mckissock.com which is where my wife is taking hers as I type. I've also noticed that the Appraisal Institute is offering online classes as well.
You are required to take the 7 hours USPAP course every two years so that will be part of you 30 hour requirement. I think I paid $200 to renew my license after I paid $450 to take 30 hours of continuing ed.
Again, I'm not trying to discourage you but I do want you to be aware of the costs. You can make great money as an appraiser, but an old adage holds true: ?it takes money to make money?.
Study hard, be aware of the fees and costs ahead of time, and prepare for your future.
Both Eric Hemmingway & Nathan Gurley are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Eric Hemmingway has sinced written about articles on various topics from Property Investment. Interested in learning more about obtaining a certified