The Advantages And Disadvantages Of Investing In Real Estate
There are many advantages and disadvantages of investing in real estate. One of the advantages of investing in real estate is; real estate is an investment that can give you income for the rest of your life. If you buy properties and rent the properties out it can give you life long income. Another advantage of investing in properties is you can use a lot of leverage to acquire them. There are many ways you can buy properties without using your own money. One way of doing this is seller financing. Seller financing is when you agree to pay the seller over time the down payment and the rest you get from the bank.
One last advantage of investing in real estate is real estate has intrinsic value to it. A stock that you buy can lose 99% of its value but it is almost impossible to buy a property and it loses 99% of its value. One disadvantage of investing in properties is if you buy a property and can’t make the mortgage payments you can lose the property and damage your credit. Another disadvantage of investing in properties is, as an investor you depend on a lot of people to do their part. If the people you are renting out to do not pay their rent you will have to use their security money and find new people quickly or it can eat up your profits.
One last disadvantage of investing in properties is the cost it takes to maintain or repair. Many times when you think you’re done with a property something can break or needs to be replaced. Investing in properties does have its advantages and disadvantages. If you use the information you read here you will have some idea of what the advantages and disadvantages are.
By: Kevin Cox
About the Author:
A good web site where you can see more information on topics like this is Real Estate Facts which is highly recommended. Thank you and enjoy.
Categories: Investing Tags: Find People, Stock, Value Investing
Leveraging Real Estate Investment Clubs
Real estate has created more millionaires than any other investment on the planet. Real estate investment clubs provide an excellent way to build your network. Clubs vary in type; try to find a club that emphasizes education rather than one that sells products all the time. The price to attend club meetings varies; some are even free the first time you attend. You may want to join more than one club to increase your networking opportunities.
At a local club in our area you can meet wholesalers, real estate agents or brokers, investors, hard-moneylenders, general contractors who specialize in rehabbing, real estate attorneys, accountants, and many other people who are interested in real estate. Their expertise varies, as does the length of time that they have been investing.
At a typical club, you’ll find people like you who have made real estate investing work for them and are eager to share their success. At almost every meeting there are individuals who stand and announce that association members helped “do a deal” and make tens of thousands of dollars.
Finding a real estate club in your area is easy using the Internet. Do a Google search or use www.creonline.com to find a club in your state. You may also want to contact clubs when you get ready to travel to a new area. Contact the club, tell them of your travel plans, and have them suggest real estate agents in the area. These agents, who have knowledge of the local areas, will be able to help you find a neighborhood that is experiencing growth. They will help you find properties that meet your criteria. They may know contractors, sub-contractors, rehabbers, or handymen who can provide the necessary repairs. Utilize the contacts you have to build your network in a variety of areas.
Soon you will know people, who know people, who are “key players” in real estate in the area you are interested in visiting. Real estate investment clubs can show their members how to profit in changing times. The associations you make through a club can help you leverage the success of others. Why reinvent the wheel if you can simply emulate the strategies of people in your network? Special breakout sessions for the beginning investor, information on short sales, and lease options, land lording and other topics are often available. These are often available to members at reduced prices. Attendance and participation at one or more of the real estate investment clubs in your area will allow you to network with other investors in the area, will help you build your dream team faster, will broaden your knowledge of real estate investing, and is fun. When time permits volunteer to work for your club-hand out name badges, “meet and greet” first time attendees at the door, help set up booths, make phone calls or type up rosters. All of these activities could help you on the fast track to financial freedom.
By: Gail Long
About the Author:
Gail Long and her husband John have approached real estate as a vehicle for building financial security for their family and for their retirement. They include their children in the business, taking them to real estate seminars and having them help with rehab properties and rentals. Gail has studied real estate for more than 30 years and has attended seminars throughout the United States. Her focus is residential property.
As a personal real estate coach for Prosper Inc Gail helps others achieve financial success as they pursue their real estate dreams. She has a Master’s Degree and taught high school mathematics for more than 25 years. She is combining her love of teaching with real estate as she coaches students throughout the United States. One of her favorite quotes is “Those who can do, those who believe others can also, teach.” Gail was Prosper’s top Real Estate Coach in 2007.
Categories: Investing Tags: General Contractors, Google, Real Estate Investment Clubs
Real Estate Investing In Multi-Family Apartments
Some investors find investing in multi-family apartments rewarding as they yield more long-term returns. An average individual investor cannot invest in multi-family apartments by himself; they make use of specialized REIT’S to do it for them or form a partnership with an experienced associate as it takes up time and needs an experienced person to see to the due-diligence, to take control and manage the property wisely.
Tips on How to Invest In Multi-Family Apartments:
It is necessary to identify a stable, profitable multi-family apartment, have a good idea of the local market and the have the ability to estimate the land value as well as the building value properly.
It is essential to make a financial as well as marketing analysis of the property.
Present a well thought out irresistible offer to the seller once you have made sure the necessary finances are in order.
Proceed with the due diligence and not be satisfied until you have studied in detail every document relating to the building and the maintenance of its equipments etc. The title deeds, tax returns of last 3 years if possible, insurance policies, financial records, information of any existing liens, all leases and all contracts for equipment maintenance, parking lot contracts, all utility bills, fire systems, litigation history, tenant and associated problem records etc. will be appraised. Engineering inspection, environmental inspection etc. will be conducted on site.
Have an attorney study all the documents and explain them to you.
Once the due diligence matters have been cleared it is time to bargain for as low a price as possible and legally purchase the property if it suits your needs and seems a profitable venture.
Try, and get a triple net multi-family apartment, as it could be a hassle-free investment as the owner just has to receive monthly rental checks and does not have to worry about maintenance etc. as the tenants are in charge of that!
People like investing in multi-family apartments because of increased cash flow, competition is less, if indeed you are in charge of maintenance because of the big cash flow it will be easier to hire a manger to take care of the property and deal with its problems. Multi-family apartments are also in demand because the property appreciates better than a single-family property. Some creative real state investors make fortunes rehabbing run down condos and giving them a face-lift! Thus, multi-family apartments are ideal suited for those who have large sums of money on hand to buy and invest in high yielding properties. They should have the expertise to deal with tenants and collecting rents on time and know what action to take in case the tenant defaults on payments.
There are firms offering products as well as services to help run businesses successfully.
By: Alexander Gordon
About the Author:
Alexander Gordon is a writer for http://www.smallbusinessconsulting.com Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.
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Categories: Investing Tags: Family Apartments, Leases, Tax Returns
