Expert Advice for First Time Investors - Legal, Financing, Best Neighborhoods, Property Management

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Andrew Duncan and his panel of experts give advice for first time investors. His has Shawn Yesner from Yesner Law, Arnie Diaz from Waterstone Mortgage and Paul Arrington from Arrico Property Management as guests on The Duncan Duo Show.

The real estate market is a great options for those looking to invest. It's more stable as compared to the stock market and there is a peace of mind element to it.

Shawn gives advice on topics about the legal aspects of going into the business. You need to do your due diligence. Make sure you are working with an experienced agent, an experienced property manager, build your team - an attorney, an inspector. Know what you're getting into ahead of time - what's the financial viability of the condo association, home owners association, etc. Make sure you have a lease form in place. Most forms available need to be customized to the property, situation and what the investor needs.

Andrew shares something he learned from Rich Dad Poor Dad by Robert Kiyosaki, one of the first books he read about investment. His concept was that if you're going to be a real estate investor, you need to learn how to trust other experts because you won't be able to know it all especially if you're just starting.

Other things that need to be considered to set up your real estate business right are the taxes, the citizenship of the investor (if the investor is a US citizen or not), and liability protection. Shawn also touched on whether or not to get an LLC when setting up the business and if it's the right option for you.

Arnie talks about the mortgage side. He says that if you're buying a primary residence, it doesn't matter how many rental units you have, you are still allowed to get a mortgage as long as your debt and income ratios are ok. The number of loans that an investor can have at a time is anywhere from 4 to 10.

They also talked about how there's a great opportunity for the flipper market right now although flipping homes is not for novices and not for the faint of heart. Unless you've had a lot of education and have worked with a lot of people who are truly helping you, this is a very risky thing to do.

Andrew recommends to new real estate investors to start off with simple rentals first. Buy something that can make a decent cash return, go through the process a few times of buying and selling property where you don't have a huge risk to get familiar with the process and really know the market. Study the market well to the point where when you look at a price in a neighborhood, you'll be able to tell if it's under priced or overpriced before you go into flipping so you'll be able to recognize a good opportunity.  Paul adds that it goes for real estate agents as well.

To get more Tampa Bay Real Estate news and advice from Tampa Bay's #1 Realtor, tune in to The Duncan Duo Real Estate Show on 970 WFLA - Tampa Bay every Sundays at 10 am.