REAL ESTATE FOR BEGINNERS. What You NEED to Know Before You Buy Your First Property.

This video will focus on real estate for beginners where I’ll cover the basic information everyone should know before they get into real estate. Did you know that owning real estate is one of the safest and easiest ways to become a millionaire? It’s true. This video will show you what you need to know before you buy your first home.
Andrew Carnegie said, “90% of all millionaires become so through owning real estate. More money has been made in real estate than in ALL industrial investments combined. The wise young man or wager earner of today invests his money in RE.” I should add that a wise young woman or really anyone who’s looking for a simple path to riches should invest in real estate. I can tell you from personal experience that buying real estate is the BEST financial decision I have ever made. One of my only life regrets is that I didn’t start buying real estate sooner.
Most Americans buy what we call a single-family home. This is just your average everyday property located in a neighborhood where each person has their own yard & really a place that is designated for just one family to reside.
Before you start looking at homes, talk to a mortgage lender & this is why. Homes cost hundreds of thousands of dollars. To buy that home, the bank will require that you put a minimum of 3.5 - 5% down & then, they’ll loan you the rest of the money you need to purchase that home.
Of course the bank isn’t going to lend that money to you for free. They’re going to charge you an interest rate on the money you are borrowing from them. A common interest rate for a home loan is usually in the 4-6% range & the rate you get depends on several factors like your credit score, your down payment & market conditions. Most banks or lenders will require you to pay them back in 30 years. So, they’ll make some calculations & come up with a monthly payment.
You could choose to live in this property, or you could rent or lease the home. If you choose to lease the property you can usually charge the renters more than what your monthly payment is. In the real estate industry, we call that cash flow. This is a very good thing. Cash flow is great, but it’s only a small part of the formula to make you a millionaire. There’s something much more powerful at work here. Have you heard the word EQUITY? It’s one of my favorite words. Equity is the difference between what your home is worth & what you owe. This is why real estate is considered one of the safest & easiest ways to become a millionaire. So, not only are you building equity, but you’re also getting cash flow. It’s easy & anyone can do it. Once your cash flowing one property, it’s easier to buy more properties.
You’ll want to watch my video The #1 Secret to Building Wealth where I teach My 3-10 RE strategy to becoming a millionaire real estate investor. Here's the link - https://youtu.be/SQwSxJf7g1M
Ok, so the top real estate investors know how to BUY LOW & SELL HIGH. I’m fine making a less on the purchase of the home if I know that I can kill it on rent. But, the savvy investor will make multiple lowball offers until someone finally accepts one. If you want to speed up the process & make great money as a real estate investor, you’ll need to learn how to accept rejection, you’ll need to practice patience in searching for the best deals & you’ll definitely want to make sure the home is worth more than what you paid for it.
Going back to, your loan. Have you heard of PITI? PITI is Principal, Interest, Taxes & Insurance. PITI are the 4 parts that make up your monthly mortgage payment. Each month when you make a payment, part of that payment will go toward principal which helps you pay off the house. Another portion of the monthly payment will go to interest which is the profits the banks makes by lending you the money to you. Another portion will go to your taxes. The bank wants to make sure you’re paying your property taxes. They'll require that you insure the home. Because they’re fronting a lot of cash & want to make sure that they get their money back even if you burn the place down.
If you’d like to take an in-depth look on the home buying process, watch, Everything you need to know before you buy a home. Here's the link - https://youtu.be/efFls0fdR_M
There’s another option, seller finance. It’s like rent to own. It can be very profitable. We call it rent on steroids.

Ty Wilde
801-995-2337
TyWilde7@gmail.com
Wise Choice R.E.

Find me on Social Media -
Instagram: https://www.instagram.com/ty_the_real_estate_guy/
Twitter: https://twitter.com/Ty_Wilde
Facebook: https://www.facebook.com/TyTheRealEstateGuyUtah/

Ty Wilde is Utah's best real estate agent on YouTube with over 100 real estate videos. Ty is Utah's best Realtor on YouTube for New home construction videos. Ty has some of the Best Videos on buying a home, selling a home and Real Estate investing. Subscribe to Ty’s channel for the best real estate videos on YouTube.