How to Invest in Real Estate for Beginners

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Think you can do a better job in investing in real estate than all of the companies that you have been reading about in the newspapers to the last six months? Hi this is Roger Grow from Grow Asset Management and today we're going to be talking 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 it's your first time buying a piece of property I would suggest doing it alongside someone who has done it previously. They may 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 that 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 some buy shopping centres and some buy houses. You can pick and choose what you would 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 the limited partnership form, typically they have high minimums rather than low minimums, the advantage generally is that the person or group managing this money knows what they are 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 advisor, tax accountant and lawyer.

Hope that helps. I'm Roger Grow from Grow Asset and thank you very much and spending time with me.