Here are some suggestions about how exactly how to start real estate investing and keep the excitement, make money from the opportunity, and minimize the potential risks.Before investing in your first property, make sure you do some homework. You don't have to obtain a PhD in Real Estate, Finance, or Law, however, you need to get a good chunk of knowledge and think about your personal situation realistically. Exchanging real estate is not so simple as changing cars.Understand the market you're interested in to see what the average rentals are going for. It can vary considerably even inside a single housing tract. That details are easily gained by speaking with local Realtors or looking on the web.How to start real estate investing requires you to study a little bit about legal restrictions and requirements, about contracts, escrow, titles, insurance, closing procedure, and also the roles different individuals play along the way. Each has a cost. Look around.Once you're ready to make the leap the next step is to find a potentially profitable property. The web makes that a lot easier nowadays, but you need to drive round the area, too.Search for 'For Sale By Owner' signs and scour the neighborhood newspapers for 'For Rent', abandoned properties, etc. And talk to friends, family, and local Realtors.Take a look at properties nearby. Could they be maintained in a way that won't depress the selling worth of your property? Even if you purchase a 'fixer-upper', and turn it into a castle, it may be tough to sell profitably inside a deteriorated neighborhood.Once you have found that diamond within the rough, unless you've won the lottery or invested well within the stock market, you'll need to finance the acquisition. Mistake number one. You ought to have your financing in position BEFORE you find a property.Speak with mortgage lenders - banks, mortgage lending companies, Internet mortgage loan businesses. Discuss just how much you want to invest and answer their questions regarding income, etc.They'll examine your credit report, so make sure your report is clean of any outstanding negative marks.Question them about financing options. Today there's a dozen different ways to finance a real estate investment, with variations in rates, in advance funds required, and tax consequences. You are going to put out a chunk of cash, but also to take on a considerable liability. Be prepared.Got that dream deal and able to buy? Perfect. Negotiate the very best price you can, without looking to get something for nothing. The vendor wants to get whenever possible, and you want to pay less than possible.Out of that tension may come two satisfied parties, or two those who both lost. Be firm, but prepare to compromise. You would like the seller to repair that bad hot water heater prior to closing, the vendor wants you to provide them with an extra two weeks before needing to move.Give a little, obtain a little. The alternative is generally a lot of expensive and life-draining legal action. Strike a mutually beneficial arrangement and you will save money and stress.How to start real estate investing is a question that has so many answers like lending, law and understanding the market. You really need to do your research and seek professional advice before you start real estate investing.Enjoy your very first time. It's an adventure!