Most people never begin real estate investing because it seems so complex and complicated. So let's talk about how to begin investing in real estate.

For most people the single biggest and most profitable investment they make in their lifetime is the purchase of their home. If you've already done that than beginning real estate investing will be simple as you learn more advanced strategies.

Beginning Real Estate Investing 101

What are your real estate investing goals and objectives? Are you looking for passive income to support you in twenty years? Are you looking to make $10,000 cash this month? Are you looking to get rich in real estate fast?

All can be achieved and are much easier than you think. Let's put together two plans for how to start investing in real estate. One plan designed for making money fast without using your own cash or credit and a second plan that builds wealth slow over time.

Plan 1 - The Real Estate Investing Get Rich Fast Plan

Given the choice of getting rich fast or slow I'm all for getting rich fast. When I started I did not know about wholesaling and how you could buy and sell properties without using your cash and credit. Had I known how to start investing in real estate without using my own cash or credit I would have chosen it. Unfortunately I did not know the wholesaling techniques and formulas available in the book "Real Estate Magic 101 - How To Get Rich In Real Estate Even If You Are Dead Broke!"

Wholesale Houses For Quick Profits. By wholesaling houses you can generate cash to pay off your debts and build up a cash reserve. Wholesale profits of $5,000-$15,000 are not only fair and reasonable but easy to achieve. A realistic goal for someone who is beginning real estate investing full time is 1-2 houses per month. There was a time when my partner and I were doing 2-3 houses per week so I am talking from experience.

If you are really serious and want to know a step by step how to start investing in real estate through wholesaling then be sure to check out the Kick Ass Wholesaling System.

Why wholesaling is the best way when beginning real estate investing? Knowing how to buy at deep discounts means you are profitable on the property from day 1. Most people and so called real estate investors buy property and pay retail prices than hope that appreciation increases their property values. Buying wholesale insures profits! A common misconception for beginning real estate investors is that buying wholesale means buying junk properties. Not true. We buy both ugly properties needing repairs and ugly situations (divorce, death, two house payments, etc).

Rehab The Best Deals: OK, your wholesaling business is going well and you've learned how to buy at deep discounts and sell for quick profits to other investors. Great. Now's the time to get your feet wet in the rehab business. Now I wish I could tell you that it was going to be easy and handyman or contractor you work with was going to be the joy of your life but I can't. Will there be bumps and bruises? Yes. Will it be very profitable? Definitely if you listen and do it right.

Where do I begin in real estate investing if I want to do my first rehab? Start with one of your own wholesale deals that have a big fat profit in it and rather than wholesale the property to one of your investors keep it for yourself to rehab. I call this keeping the home runs for you. After a few home runs you'll determine how much rehabbing is right for you.

Beginning Real Estate Investing Tip: An advanced exit strategy when you buy fixer properties is to sell the house on what is called a Work For Equity Program where the tenant buyer makes all of the repairs with their time and own money. This can realize twice the profits or rehabbing alone!

Next, you'll want to incorporate plan 2 to build wealth.

Plan 2 - How To Start Investing In Real Estate To Build Wealth Over Time

Wholesaling and rehabbing are great for beginning real estate investing because you can quickly generate cash profits. But real wealth is achieved in holding real estate long term. Your long term real estate investing goal is to purchase rentals with positive cash flow that will pay off over time. In Real Estate Magic 101 I show you how to evaluate properties and what to buy so follow the guidelines in the book.

A few things to remember when buying rentals.

1. Only buy if you have positive cash flow after all expenses.

2. Use a property manager and expect to pay 10% property management fee.

3. Purchase on a 15 year fixed loan if possible.

4. Shoot for a 25% cash on cash return.

When buying rentals the most important thing is net positive cash flow. If you are losing money every month you are not investing!

A Reasonable Goal To Get Wealthy

Make it a goal to buy 1 rental property per year for the next 15 years. If you were asking how to start investing in real estate there is a simple plan that will get you wealthy over time.

Think about it. In 15 years you will own the first property free and clear. Rents and property values have increased and every year another house will be paying off. To increase your wealth you can apply extra principle to your payments. At this point you have cash flow, a boatload of equity, and appreciating assets. If you need cash you can sell a property or refinance it depending on your needs and goals.

Success is that easy! One house a year is a piece of cake, imagine if you did 2 houses per year?

Beginning real estate investing is not as difficult as it might seem. The key is taking action first by increasing your knowledge and second getting involved and moving forward. Just one house a year can make anyone rich!