How to Invest in Real Estate for Beginners

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Investing in real estate as a beginner can be done by individually purchasing a property, investing in a mutual fund or stocks dedicated to buying real estate or joining a private group that purchases real estate properties. Discuss real estate investment opportunities with a financial adviser, tax accountant and lawyer with advice from a financial consultant in this free video on investments.

Part of the Video Series: Investment Tips & Financial Planning
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Video Transcript

Think you can do a better job of investing in real estate than all of the companies that you've been reading about in the newspapers over the last six months? Hi, this is Roger Groh at Groh Asset Management. Today, we're here to talk about how a beginner can invest in real estate. Really, there are a couple of ways to do this. Number one, you can actually take your hard-earned cash and find a home or a building that you would like to buy and go and try and cut a deal with the seller. Once you've cut a deal, you can then go to a bank and borrow money and purchase that piece of property. If that's your first time buying a piece of property, I would suggest doing it alongside somebody who has done it previously. They might help guide you as to properties in which you have the best chance of making money. A second alternative is to join a group of other people that are investing in real estate. One of the ways you can do that is through mutual funds or stocks that are dedicated to the purchase of real estate. Some buy apartments and some buy big buildings and some buy shopping centers and some buy houses. You can pick and choose what you'd like to do. The advantage there is you can start with very small amounts of money and participate in any broad gain that exists in a piece of property. Third, you can join a private group that is looking to purchase a property or a group of properties. Typically, these are in limited partnership form. Typically, they have higher minimums rather than lower minimums. The advantage, generally, is that the person or group managing this money knows what they're doing and that may help you over the longer term to make money. Is this a good time to buy real estate? Well, I'm going to leave that up to you. It's a discussion you should have with your financial adviser, tax accountant, and lawyer. Hope that helps. I'm Roger Groh of Groh Asset, and thank you very much for spending time with me.


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