Creative real estate investors have been experiencing a boom over the last decade. They have been able to see some serious profits in a relatively short period of time. Some markets continue to show this amazing growth too. Areas like Phoenix, AZ and Las Vegas, NV are as hot as the desert that they are located in. Some people predict and end in sight very quickly, while others believe that it will continue. Now, being that this article is based on facts, let's agree that we are currently in a real estate boom. With that being agreed upon, we can now move on to the lesson at hand.

The "how to" business is booming in real estate and is as hot as some markets. Most of these self proclaimed gurus will tell you that you can make money in any neighborhood, in any economic climate, all while being in any financial situation you happen to be in. This may have worked a few times, which gave the guru a name or a motive, but the fact is that you need to have yourself in a good situation before you begin in real estate investing.

Let's take a look at Maryland, Kentucky, North Carolina, and Texas just to name a few. These states have all passed or have pending legislation that will put a serious hurt on the creative real estate field. There is no way that Texas investors for example, can do a lease option if it is illegal correct? There is a provision though that states that the investor can buy the property outright (most newbies do not have that kind of cash), or he can use his line of credit (sorry, this is reserved for people with decent credit), or he can get a simple loan and ask the banker to agree to what he wants to do (this is easier than it sounds but you still need good credit).

Every day I am asked by a new real estate investor (or wanna be), what the best route to take is when getting into the business. My same old answer is that you can learn any type of investor style, just make sure that you have yourself in order first. One word of caution too, don' be fooled into thinking that you can spend some cash and instantly have business credit and be able to take down properties in the company name. Lenders have tightened their belts considerably when it comes to lending to an llc or corporation with credit. Yes it is possible to get corporate credit cards at Home Depot and Office Max when you have some corporate credit, but unless you are going to build a building and type a letter of thank you, you again need credit. Lenders will lend in some instances to a corporation with good business credit, but only if the company owner or representative signs as a co-signor or what they call a guarantor which states that they are backing the loan in their name and guess what...Yep, they need good credit.

Newbie investors truly need to understand that it is nearly imposible to have sustained success without a stable credit score behind you. Stop spending countless time and money or various programs and first step back and get your own financial house in order. Don't fall into the misconception that it will take years to clean your credit up. There truly are ways to climb out of the rut that you are in and it does not have to take years to do. With most credit reports containing blatant errors, a person can upgrade their credit quite easily. There are also ways to add things to your files that will make you more appealing to creditors. Most people do not know that you can add character references to your reports. This in itself can add a distinct advantge when looking for lenders to accept you as it is setting you apart from the masses and that's what it is all about.. Adding positive credit is a very simple aspect as well. You might not be able to remove everything negative, but at least cancel it out with something positive.

The journey into real estate investing can be a wild and financially rewarding ride. The averge Joe can be financially secure in a matter of a years. If this is truly an area that you want to concentrate your time, effort, and money in, do the right thing and get yourself prepared for what it will take. Do this even before you attend your first seminar or buy that first course.

Patrick Zanders is co owner of ACR Systems. They have been succesfully assisting newbie real estate investors in getting theirselves in financial order by upgrading their credit and teaching them investment principles for over 10 years. He can be reached at pzanders@comcast.net or http://www.acresystems.net