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Real Estate InvestingReal Estate Investing can be a difficult topic. However, we'll keep it simple and easy to understand. To invest in Real Estate you don't necessarily have to buy a home. The easiest way to invest in Real Estate is by selecting a mutual fund called a REIT (Real Estate Investment Trust). All mutual funds should have at least one fund catering to Real Estate Investing. These investment trusts will invest money in apartment rental properties, townhouses, senior citizen homes, malls, university housing, commercial real estate and home developments among many others. A REIT is very popular with folks who don't want to own property outright. It gives you an alternative and flexibility toward investing without buying a home. A REIT pays out approximately 90% of their earnings in dividends to shareholders on a quarterly basis. Everyone should own a REIT as part of your investment portfolio. The last few years have seen a huge bull market on RE buying and investing. It’s been on a worldwide tear especially in countries like China and India.
Fix and FlipFix and flip is a money making strategy where you buy a house, fix it up and then sell it a short time later for profit. This is an excellent way to make money, but it only seems to work in a bull real estate market. I would not take a chance at flipping a property during bad economic times. Although real estate investing can affect local communities differently, I would not take a chance. There are different ways to play the real market in a way that can assure you a piece of mind. Distressed PropertyA property that is in poor physical condition that will need substantial repairs, but you can find priced much lower than market value. Certain fix and flips can be considered a distressed properties, but I think the repairs are greater. Again, this is a strategy that you will not want to get into when the real estate market is down. Always, check neighborhoods to see if houses are selling fast or how long they've been sitting on the market. Remember that everything is related to supply and demand. If there is no huge demand for houses because buyers are lacking, you will not want to get into these types of properties for investing. Income PropertyLet's say you buy a house or an apartment, make minor repairs, paint it, fix the windows and plumbing. Then you to rent it since it's a down real estate market. You want to make sure that your rental will cover the mortgage, taxes and insurance. If you clear all those expenses and still have, let's say $150.00 extra in positive cash flow then that's considered an income property. This is a good way to make some extra cash while you build equity on your property. This has a huge advantage since your interest on the loan is also tax deductible. Not only are you making a positive cash flow every month, but come tax time you get the opportunity to get a little extra back from the tax man. Look for good solid neighborhoods where young professionals might be looking for a place. If you can't do it alone, get a trusty friend or a family to join you. Again, the same principal applies, real estate is a local thing so see if there are good deals out there. This is a bit different, but a friend of mine who is a mortgage broker sent me this article. I wanted to share it with my readers since it's another way of looking at real estate investing. It's a unique approach that can easily be done while lowering your monthly payments. Click on this link and read this article that will blow your mind - A Unique Mortgage Strategy. For more information about Real Estate visit the National Association of Realtors Home Page Be sure to come back soon since I'll be adding some interesting strategies for real estate investing. I am currently doing some research because of the current real estate market. I'll be writing about foreclosures and how to look for them at your county municipal clerks office. I will also write about tax liens where homeowners are not able to pay their taxes and the county has a sale on the house. There are so many strategies that one can use. We just have to learn about them, do your research and then pull the trigger. Don't be afraid, you can do it. Keep on learning and investing. Back to the real estate investing page Back to Home Page
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