Most people feel that as a beginner - they just aren't ready to invest in Real estate. It's too risky they think. I don't want to get stuck with a second mortgage they worry. The simple fact is, when structured properly, real estate investing, even if your just beginning is a very safe investment alternative.
Let's first see what a real estate investor really is. There are a number of ways to make money as a real estate investor, you can buy properties, fix them up and sell them (Very Risky). You can buy a property, list it with a real estate agent and hope to sell it at a profit (again, very risky) or you can obtain control of a property for a few dollars then market the property to sell it within a few days (virtually no risk at all). This third method, called house flipping, is what I recommend all beginning real estate investors choose.
The key to flipping real estate is to get in and out very quickly.
In some cases this means selling the property for less then market value. Remember, you're trying to make a profit and keep the whole process risk-free, so you will have to make some concessions.Your goal then as a house flipper, is to find under-valued properties, put them under contract (usually for around ten dollars) then market them as aggressively as possible. You want to sell the property within days if possible. Remember, you don't get paid until the property is sold, so just holding onto a property with the hope that you will make an extra few dollars is the wrong attitude. There are bargains everywhere, you want to flip as many of those bargains as possible, so don't get greedy.
Flipping in this manner is virtually risk free, because you are not actually buying the property, you are simply putting it under contract. If you are unable to sell it within a reasonable amount of time, you simply walk away - with no further liability.
Beginning Real Estate Investing