How Do I Get Started In Real Estate?

Mark has always been interested in real estate and wants to know how someone who knows nothing about it can begin real estate investing.

QUESTION: Mark has always been interested in real estate and wants to know how someone who knows nothing about it can begin real estate investing. Dave gives him some basics.

ANSWER: Whenever you own real estate, you will have repairs—just like when you own your own home. You have to know some repairmen in order to fix the problems if you aren’t able to do it yourself. Rental property works like this: the cheaper the rent, the more of a character you’re going to deal with on average. If it’s too expensive, you also get characters because they think you work for them.

A good, solid, middle-of-the-road house is a solid rental. I don’t recommend debt to buy rental properties. A way to get started cheap, with lower risk, is to pay cash for a little house, but it’s probably going to be a lower income situation. The bad news is: The renters are a hassle in a lot of cases. The good news is: You will learn how to be a landlord. You’re either going to be a person who is a landlord or a person who flips properties. But either way, I would use cash.