If you know how to make money in real estate you can start your own property investment company. You will be able to work for yourself and kiss your job and your boss goodbye. But until then you have to study the real estate markets and invest in good courses.
If you do not have a real estate license, no problem. The only real advantage to having a real estate license for the investor is access to the MLS.
The MLS, multiple listing service, provides the comparison prices of the homes in your target market. This is invaluable information when you are negotiating sales and purchases. If you do not have license or plan on getting one, make friends with a real estate agent who will allow you to access his MLS.
But you will also want to make friends with people with money available to invest with you. These people are called private money lenders.
You can find several sources of money to buy properties besides using private lenders. For instance you can apply for a conventional bank loan. You already know that this is the longest most difficult process to complete in order to get a real estate loan. You will have to have great credit history and also a high paying job in order to qualify.
If you do not have the credit score or the good paying job, you can try a hard money lender. He is less concerned about your credit history or your job but expect him to charge you at least double and sometimes triple the prime interest rate. He also will expect you to pay the loan back much faster than a conventional loan payment term.
Some hard money lenders require the property you are buying to be used as collateral for the loan. If you do not pay back the loan you will lose the house. So the best way to use hard money lenders is when you are flipping houses.
House flipping investors buy houses at a discount and then sell them on the retail market or to other investors after they rehab the house. The difference between what they pay for the house and the cost to rehab it and their selling price is their profit.
Or rather than spending the time or money to rehab the house they sell it to another real estate investor for a profit. In either case they do not hold onto the house for very long so they can pay the hard money loan with the resale proceeds.
But the best option you have to own property is to use private money lenders. These are people with money in retirement accounts who are looking to earn more than the two to three percent on their retirement accounts.
You can assure private money lenders that although there are no guarantees in any investment, that investing in real property is a good investment because their money is secured by the property itself. Each state has different laws about private money lending but it is worth looking into the laws in your area and learn how to make money in real estate with the help of private money lenders.