A Real Estate Investment Trust is the easiest form of real estate investing. Another way to invest in real estate is to use one of the real estate crowdfunding platforms available today. Both are fine if you get involved with the right organizations.
There are several very popular real estate investing strategies. There are also many misconceptions and for every winner, someone loses out. There is safety in numbers and shared risk and rewards. Most of the successful investors use a very simple strategy and think long term.
Real estate investment trusts and real estate investment groups also have pros and cons. Do your own research with Google and review not only the pros, but the cons. If you have friends of the same mindset contact me and start your own smal real estate investment group.
Yes it is that simple but some do not do it well. Here is my recommendation for home ownership. Buy a home in a nice community in a good location. Buy an average home in that community on a better than average lot let that be your first investment property.
It is even better if you buy real estate properties near the median price for that area. Then never sell it or wait for many years before you do. I also prefer communities with a strong HOA that makes home owners take care of the properties.
Flipping houses can be done but rarely do people make life changing money at it. What most achieve is that wage of the work they perform. It is a job, job stands for just over broke. Thousands watch tv shows on flipping houses and get caught up in it. Here is some reality on flipping houses part of the real estate business.
Bank owned properties sell for very close to market value unless they have a large group of them on the banks books. Short sales are the same way. When there are few on the market the banks know that and want top dollar. Smaller banks may not advertise the best deals. Buying older homes and fixing them up may be a good investment strategy but most become real estate projects.
If you are doing some real estate investing and not house flipping you will be wanting passive income producing properties. Namely rental property investing is done by purchasing single family homes in the Winter Garden FL real estate market.
If possible try to purchase below market value and then select a property manager who will work for less if you own more than 1 house as a rental property. Buying below market value is possible but not probable. Plan on putting enough down on a good investment property that you can afford to lease it at the going rate minus property management without a negative cash flow.
One of the best real estate investment strategies is not using your own money to pay off a home. Many a millionaire real estate investor has passed on house flipping and opted to buy investment properties and made money off of them as rental real estate.
Residential real estate investing is the way to go. Commercial real estate investing is dying on the vine as larger companies are chocking out the smaller chains leaving vast amounts of empty space. People need homes and America is still the best country to live in. After every housing bust residential property is purchased and leased by individual investors looking to build a rental income and future equity financed by tenants.
Rental properties need rental income. Rental properties need to be purchased at a price that will allow the rental income to cover not only the mortgage but the upkeep and rental property manager fees.
Cash flow is needed to offset the negative investments you will occasionally make as new investors. Learn the local real estate market, then start investing in rental properties.
One of the perks to living in your real estate investment is often overlooked. That is property taxes are lower thanks to states allowing homestead exemption. Taxes will eat away at profits from your real estate business because most of the time they increase each year. The tax benefits of homestead exemption offers some protection from that.
How real estate agents do you think invest in real estate? Actually very few because we know most homes currently sell for market value. Real estate assets are great only if they produce an income or provide you shelter. Real estate deals do exist but they are few and far between and yes I am a real estate agent.
Avoid commercial properties and stick to residential real estate investing. Start investing with making a great purchase of your own home. Develop an operating base and learn your local real estate market.
Look for homes which look like they need to be sold. Public records may show the mortgage records. Can they afford to take less? Is the home vacant? If so then you can bet they need to sell in most cases. If the home has been on the market for a while then make an offer you can afford long term.
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