It's important to be educated before trying to build wealth through real estate investing. Gauging the market can minimize the risk of failure or loss. Before you start investing in real estate, it is imperative that you understand a few important concepts. First off you must create a strong foundation that your real estate investing endeavors can stand upon. This assures that your business can weather the storms of the future. Find ways to build a strong foundation to maximize the odds of your success.
As a first time investor, your first purchase shouldn't be well above your means. It is very important that you don't pay too much and that you invest in the right kind of property. Real estate investing can be profitable but also has some real drawbacks. Number one, you must count on holding costs. In many areas after you add up taxes and insurance it can cost 3-5%/yr to simply own a piece of property.
Secondly, there is liability risk. It doesn't matter what your lease says, any person who in injured on your property can sue you for injury and damages, which means you need a lot of insurance to protect yourself - at least $2 million.
Preston Fontenot has worked in many areas including real estate, and therefore knowledge in vast array of investment projects. He makes sure to do his due diligence in whatever investment he gets involved in. He works hand-in-hand with his partners, keeping them posted on every decision.