Is real estate a good investment? If you are like me, you've asked yourself this before. I can tell you from personal experience the biggest and most common mistake that real estate investors make is not knowing the appropriate strategy of investing for each property. This mistake cost me $30,000 in profit on one of the first deals I ever tried.
Is real estate investing too risky? I sure don't think so, especially since it looks great next to paper assets in your portfolio. You can make money investing in real estate so many different ways that there really is no such thing as a bad time to invest in real estate, just remember that any investing always comes with a little risk.
For instance, when the housing market is saturated with a surplice of available supply and a dwindling amount of demand in light of the fact that banks aren't borrower friendly in the current circumstances it's safe to say that "flipping" real estate isn't likely to be a good choice in MOST housing markets. There are a few exceptions but those are rather advanced real estate marketing tactics.
I hear a while back the following quote "don't wait to buy real estate, buy real estate and wait." Now that the market looks so much different after the crash there couldn't be a better time for you to consider investing in buy and hold rental properties that you invest in for the long run.
With so many people losing their homes, demand for quality rental properties is on the rise. The good news for those who have the money to invest is that the market is saturated with nice homes in decent neighborhoods that are going for rock-bottom prices.
The last thing anyone wants after losing their home to foreclosure is to have to rent from a slum lord. So the key is to find rental real estate that is in liveable conditions. Some might need repairs and that's ok, but it's not too difficult to spot deals all over right now.
Real estate investing can be a grind on a day to day basis and if you want to eliminate yourself from part of the equation and not to have to play landlord it's strongly suggested to find yourself a property management company that can exceed your needs.
Then, when the market picks up, you have many options available to you. You could choose to hold on to the property for the rental income it generates. You could sell it for a higher price than you purchased the home for. Or, you might want to consider offering a lease-option arrangement to your tenant if he or she is interested in home ownership. The higher property value will make that a much more agreeable proposition for some real estate investors.
Now ask yourself the question, is real estate a good investment? I think now that you know you have some options to explore with your real estate investment you are starting to see light bulbs go off in your head with pretty returns in the future. The key is to find the best investment strategy for the property in the current time.
Is real estate investing too risky? I sure don't think so, especially since it looks great next to paper assets in your portfolio. You can make money investing in real estate so many different ways that there really is no such thing as a bad time to invest in real estate, just remember that any investing always comes with a little risk.
For instance, when the housing market is saturated with a surplice of available supply and a dwindling amount of demand in light of the fact that banks aren't borrower friendly in the current circumstances it's safe to say that "flipping" real estate isn't likely to be a good choice in MOST housing markets. There are a few exceptions but those are rather advanced real estate marketing tactics.
I hear a while back the following quote "don't wait to buy real estate, buy real estate and wait." Now that the market looks so much different after the crash there couldn't be a better time for you to consider investing in buy and hold rental properties that you invest in for the long run.
With so many people losing their homes, demand for quality rental properties is on the rise. The good news for those who have the money to invest is that the market is saturated with nice homes in decent neighborhoods that are going for rock-bottom prices.
The last thing anyone wants after losing their home to foreclosure is to have to rent from a slum lord. So the key is to find rental real estate that is in liveable conditions. Some might need repairs and that's ok, but it's not too difficult to spot deals all over right now.
Real estate investing can be a grind on a day to day basis and if you want to eliminate yourself from part of the equation and not to have to play landlord it's strongly suggested to find yourself a property management company that can exceed your needs.
Then, when the market picks up, you have many options available to you. You could choose to hold on to the property for the rental income it generates. You could sell it for a higher price than you purchased the home for. Or, you might want to consider offering a lease-option arrangement to your tenant if he or she is interested in home ownership. The higher property value will make that a much more agreeable proposition for some real estate investors.
Now ask yourself the question, is real estate a good investment? I think now that you know you have some options to explore with your real estate investment you are starting to see light bulbs go off in your head with pretty returns in the future. The key is to find the best investment strategy for the property in the current time.
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