Real Estate Infomercials Exposed

This article assumes you are at the absolute bottom of your financial life without a single penny in your pocket. The article will guide you step-by-step on how to start your financial life and start building credit and reputation. If you already have over $5,000+ in Investment Money put back, you can skip past this article. However, since the intention of this article is to be able to help everyone, I'm starting at the beginning. Also, there are a variety of sub-topics covered in this article that may be beneficial to you even if you do already have enough to begin investing. To be successful at anything in your life you have to be committed and informed. Investing in Real Estate (or anything else) is no different.

First, let's talk about those TV infomercials. One of their primary pitches is "Get Rich Quick!" If you had $5,000+ in Investment money stashed away already, this might actually be feasible. However, if you're watching the entire run of an infomercial and are interested because of that one statement, chances are, you don't have $5,000+ in Investment money already stashed away. If you're in a tight financial spot and are looking to get out of it quick, you're NOT going to be able to quickly Invest in Real Estate to solve your financial problems. But this is exactly what these Investment Marketers prey on when they make comments like that. You're looking at potentially 5 years of personal investment and commitment to even think about getting involved in Real Estate Investment if you're starting from the bottom. Do NOT let this discourage you. If you work hard and sacrifice now, then you have the opportunity to be your own boss, retire early, and enjoy life as you should! The following Step-By-Step guide will get you to where you want to be.

So you just got out of (or are still in) high school and you're wondering what to do next...

The first thing you have to do is find a job. The quickest way to do this is by going to your local Employment Office or a Temp Agency. Going through them can increase your chances of finding work quickly. Take the first job you get. Now is not the time to be picky. Minimum wage is just fine at this point. You're also going to need a place to stay for awhile until you get a few paychecks. If you have relatives (ideally, your parents) or friends that you can stay with until you can build up a little cash then that's probably best as you'll find yourself more relaxed and better rested for work. The alternative is to find a local shelter. Once you get your first paycheck, you should give something to whoever you're staying with (even if it's just $20) and insist that they take it. Finding a place of your own can be very difficult if you're just starting out and have no collateral or credit.

Buy only what you need. Shop at discount stores and even try the Goodwill, Christian Mission, and Salvation Army. Do not eat out...EVER! Eating out may be very tempting when you have money in your pocket, but it will run you dry very quickly. Instead, buy some bread, meat, etc. and make your own meals. Ramen Noodles are also very inexpensive and are great for helping to keep you healthy during the cold season. At this point, you shouldn't be worrying about impressing anybody. The more money you can save and put back, the better.

Open a Savings account. Most banks will let you open a savings account for $100 (or less) without any fees or penalties (make sure you read the fine print before signing anything). Do NOT open a checking account. At this point, you don't need one. We'll cover Checking Accounts a little bit later. Every time you get paid, put what was left over from the previous week into your Savings account. Keep in mind that this is your first Investment. Your money will earn interest while it sits untouched in the account. The more you have in there the more interest it will earn you. The ultimate objective in Investing in Real Estate is to make enough money that you can literally live off the interest you earn from your money sitting in a Bank owned Savings Account. So this is a very important first step.

The next thing you should to do is an initial evaluation of how much you are earning. At this point, it's okay to job hop a little to give yourself raises (sometimes it is even necessary). Just make sure that when you go to interviews you are honest about why you left (or are about to leave) the previous company. In this day and age, it isn't as shunned as much as it used to be and, in fact, it is pretty much expected. Being that honest will also increase your chances of landing the job with them (even if they know you may only be with them for a few months). Once you have found a job that you like and that is earning you decent wages (for your education level) stick with it and work hard to try and get promoted within the company.

Get your own transportation. If you don't already have your own transportation, you need to start thinking about using some of that cash in savings to purchase a vehicle. If you want a really great deal on a vehicle, you can buy a Repossessed vehicle usually for under $500. How's this? Here's your first FREE secret. From time to time when Police do a drug bust of traffickers, they take possession of the vehicle. The Police contract out toe-truck companies that also do repossessions to pick these cars up. The Police then have two options. They can have it impounded by paying the "REPO Man" the contracted fee (around $100-$300) to haul it to an impound OR they can sign-over a clear title of the vehicle to the "REPO Man" (at his/her discretion). Generally the contracted "REPO Man" is too busy running his own business that he doesn't have the time (or money) to also operate a used car lot. However, they may sale up to so many cars a year without having to obtain a used car license (which can be expensive). The result is a lot containing a handful of nice cars priced to move. The only thing you have to do is track down who owns the contract (which can generally be done over the phone). You also now have your first piece of collateral, but we'll get back to that later. Just make sure you apply for a tag and acquire at least the minimum required insurance coverage for the vehicle.

Moving Forward

I want to take a moment to talk about government assist programs. These programs were designed and intended to help people that are starting out to be able to get on their feet and support themselves. Yes, these programs are very often abused by people who have no desire to support or establish a better life for themselves. As a result, there is a hesitation for those that intend to only use the programs long enough to support themselves. There is also the common arrogant retort of "I never received a hand out from anyone and I'm not about to start". That is simply pure foolishness. There are also those who believe that it makes them appear third class and are afraid of the stares it may attract. The news flash is that if you are just starting out and don't own your first habitation (house), then you ARE a third class citizen because you fall below the poverty line. This is nothing to be ashamed of as long as you intend to better yourself. Here's the SECRET on government assist programs. The government WANTS you to take advantage of these programs if you qualify and are going to better yourself. This is especially true for those who plan to further their education or become investors. The reason is because by you bettering yourself and earning more money per year, you will also be paying more in income taxes. Purchase a Car or House? More taxes. Buying anything that is not necessary is a Luxury. The more you buy the more taxes the government collects from you. These programs are the government's investment in YOU. So don't be a fool and take advantage of them and let it help you gain a better financial position more quickly! Trust me, by the time it is all said and done with, you will have paid the government back 100+ fold.

Article II will cover budgeting...