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[BMF]

Over the 50 years investing in real estate has become as common as investing in stocks and bonds. This market has a lot of potential for people to won real estate, but it is a bit more complicated to invest in. This type of investment is an old practice and goes back centuries when people started to invest in land ownership.

Investing In Basic Rental Properties:

An investor will purchase a property and afterward rent the property out to a tenant. They will change this person rent for living in the home or one of the units. The investor will be responsible for paying the mortgage on the building, the taxes, and the property upkeep. Therefore, they must make sure they charge enough rent to the tenant in order to cover these expenses.

Some landlords will try to make a monthly profit from their investment by charging the tenant more than what is needed to cover their monthly expenses. However, this isn't a good practice in the beginning. If the landlord is smart they will be patient and wait until the mortgage is paid off thus leaving the majority of the rent as a profit.

Most properties will appreciate in value over the years and the investor is now left holding a more valuable asset. Since the 1940s real estate has consistently increased in value until 2006 where it took a major dip. However, in 2008 this took a major turn and started to rebound in 2010 and has been increasing in value again.

Ways To Get Started In Real Estate:

Real Estate Investment Groups: This is a great way to own rental property if you don't want to be bothered being a landlord. The investment group will buy up a set of condos or apartment blocks. Afterward, they will invite investors to buy a single unit or more through the investment group. You'll decide how many units you want to own. The investment group will operate and manage all the units so there isn't anything for you to do. They even take care of renting out the units and maintaining them.

This type of investment is a bit safer because the lease of the unit will remain in your name. Each person who owns a unit in this building will pool a portion of the rent together to guard against vacancies. Therefore, you will always receive enough capital to at least pay your portion of the mortgage each month if your unit sits vacant. Just keep in mind you will still need to do plenty of research into the investment company to ensure it is a safe group to invest in.

Real Estate Trading: This is like gambling or even a day trader. This type of investor won't buy and hold on to the property. They are buying this property and plan on holding onto the property for a few months. After, they will sell off this property in hopes of gaining a profit from the investment. Most people in the real estate market, call this type of trading flipping. The investor looks for property that is undervalued or in a very hot market.

The trader will look for a property that doesn't need any investment or improvement. They won't invest in this property. They are only interested in a short-term cash investment. However, this type of investment can turn bad really quickly if the investor can resell this property. Flippers normally don't have a large cash flow to pay the mortgage if the property doesn't sell. Therefore, this is a risk that a person must take when they buy and sell the property as a trader.

REITs: This is a real estate investment trust that is created by a corporation that uses investors' to buy and manage income property. The REITs are bought and sold on major exchanges very similar to a stock exchange. In this type of trading, the investment company must pay out 90% of their profits in the form of dividends in order to keep their status. This is one way a company can avoid paying taxes on the profits they gain. This is an excellent investment and will earn you regular dividends. If you invest in REITs, you'll be guaranteed a regular return on your investment each quarter when the dividends are paid out.

Leverage: When investing in real estate most mortgages will require that you put down 25% of the selling price to purchase this property. However, this will depend on where you live and in some places you just need as little as 5% to invest in a piece of land. Once the initial investment is made, the property is yours to control. You will gain equity in the property each month when the mortgage is paid. As the equity grows on your property, it is possible to take out a second mortgage to use this money to invest in 2 or 3 other pieces of land.

The investment can be a long-term or short-term investment. You can hold on to this piece of land, and rent it out to pay the mortgage each month. Otherwise, you can turn around and sell this piece of land for a profit. By holding onto this piece of land you build equity in the property. Afterward, you can take out a second mortgage on this property and invest in other properties.

The key to investing in real estate is research. You will need to decide on which investment opportunity is right for you. Like the stock market, the price of reality can rise and fall or even bottom out. Therefore, you need enough capital in your account to cover the mortgage on the properties you own just in case one of the units sits vacant for several months.

 

[overcast]

I think the thing about real estate is buying home or buying profit. If you want home, you'd just buy bunglow and have things around for one family only. Here you won't be making profit. But if you want profit, you'd buy a building and make sure that you give it on rent instead of selling it. I think that seems to be the formula of most of the real estate people out there. For them it just works out in that way.

 

[tusziget]

View attachment 1788
I'm really interested to know all about investing in real estate...

I know real estate is all about buying / selling buildings, homes for families etc...

But do you really need money to start making money from real estate?

Also read that it's better to lease it and put it for rental and that's how you make a lot of money on the long term.

Basically the number one tip I read about real estate was that never buy a building that is for one family unit, buy a building that have 10-20 family units or more, so in case couple families move you still left with other families paying their rent and from that rent you pay your lease and keep the profit.

What tips do you have for real estate investors?

What can I say?I think investing in Real Estate is a risky thing.You never know,that the families will pay the rent in time or many other things... Better buy a building,make it look better,and resell it at a better price

 

[iriswest]

Yeah, Investment is risky but in the long run you will realize how fast you can earn large amount of money from it especially, when you have lots of contacts and buyers. Money is so easy in this industry, but you need more people to be popular and gain trust on your customers as well.

 

[Lovely]

Real estate is a money spinning investment because lands and building appreciate everyday.you're sure of increment per year or some years later.

I believe as an investor in real estate one should do more of renting,than outright selling.

You rent out and get the money to buy more and rent out again and you're still making your money,the will come a time that money will be working for you.You may ask how? In years to come rent alone from those houses will be running into billion of dollars and you wouldn't need to do much than just to collect your rent and maybe fix one or two things in the houses that's if you're kind enough, because some house owners charges demages fees annually.

If need be and those houses need to be sold out,you wouldn't believe the money that you would be realize from the sales.

Investing in real estate needs some good amount of money.

 

[Old Grump]

Real estate investing also depends upon where you live. For example, here in the USA the income tax implications of real estate investing play a significant role in whether you are profitable or not.

I think a relatively safe way to get into real estate investing via rentals is to buy a house or condo, live in it for a year or two, (or more!), then move to another place and rent out your first home. You can repeat this over and over, acquiring a bunch of rental units.

I've known some folks who have done this, and they've made out okay. Just don't rush to acquire lots of properties at once and get too heavily leveraged, else you'll be in a world of hurt when a worst case scenario occurs and all your rentals become vacant at the same time.

 

[Kambas]

View attachment 1788
I'm really interested to know all about investing in real estate...

I know real estate is all about buying / selling buildings, homes for families etc...

But do you really need money to start making money from real estate?

Also read that it's better to lease it and put it for rental and that's how you make a lot of money on the long term.

Basically the number one tip I read about real estate was that never buy a building that is for one family unit, buy a building that have 10-20 family units or more, so in case couple families move you still left with other families paying their rent and from that rent you pay your lease and keep the profit.

What tips do you have for real estate investors?

The best advice I would have for someone who wants to get into this industry is to read RICH DAD POOR DAD by Robert Kiyosaki.
This guy use to live in his car before he became very successful at selling property, using other people's money!
Great read that should inspire you and help to develop the right mindset because real estate is considered to be a "cut throat" industry.

 

[Ehsan]

My brother back in 2005 bought this plot of 3000 square feet for 300000 Pakistani rupees (somewhere around 2000 USD), and managed to build a bungalow on it for somewhat around 7000$.

2 years ago he wanted to sell his house. He was a bit in hurry, and wanted to get the money quick, so the first buyer bought it for 6700000 Pakistani rupees (67000 USD). He could have sold it for more if he had shown some patience.

How much money is that in terms of getting returns on your investment? A lot!

"Real estate business is so much advantageous. I have seen a lot of people getting rich. But it does take some serious investment to do this business these days, as the real estate value never decreases."​

One of the advantages to live in Pakistan is that we don't have to pay tons of money for taxes etc. My house is worth 200000USD and I pay somewhere around 50 dollars a year for tax.

I hope this story didn't bore anyone. I just wanted to share how much one can make in real estate. Good topic by the way.

 

[Yugocean]

Some of my relatives are in working in Real Estate. It is not as easy as people think.
You need a large plot, permission to built, pay heavily for construction and also keep security to not let anyone steal from site.

After everything, you will need more investment. Like advance from home buyers or sell shares.

To be honest and successful, you have to payback with interest to investors, and rate to advanced buyers. There are lot to do.

 

[globetrotterGCC]

I have my best friend in USA , doing it since 1980 , she is very successful in Real Estate , any body needed her help can help them.

 

[remnant]

Like in other endeavours in life, start small. You don't need to have big sums of cash to venture into real estate if you pool your resources to buy units which appreciate in value over time.

 

[mdbree17]

In regards to real estate, some are very successful having their buildings and units rented. But for me, I would really love to own one for the comfort of my family. I wouldn't be needing to have it rented for profit earning, having my family around will be enough PROFIT for me.

 

[Medowriter]

Real estate investment is not a fast money making business but highly profitable, most people who go into are people with extra cash that they can spare for long period of time.

 

[Boudaa]

i know close pple who do this as their job and it brings you good money, but of course you should be smart while doing that because it can cost you a lot too, the trick one of my friend uses is that he buys a house or two in a big building while its still just a plan (not built yet) and once its built and pple get their houses and economical activities start etcetera he re-sells it for a higher price.

 

[remnant]

Contrary to many people's opinions, you don't need large sums of money to invest in real estate. One can join an investment group where funds are pooled over a specific period of time to buy land and housing units. The good thing about land is that it is always appreciating and you can resell it later at a high turnover. Due diligence is required to ensure the authenticity or integrity of dealers as there are numerous sob stories where people got swindled.

 

[jaymish]

The beauty of real estate, once you purchase it, the income you get from it is passive. For me, that would be the life. I would recommend you read Rich Dad, Poor Dad's guide to real estate investing. Quite the revelation.

 

[reyronaldo]

I was a real estate agent/broker before. To tell you frankly, there's a good and bad side in this kind of business. I would love to share more about my experience, but, I feel that I might just destroy the nice flow of conversation here. Maybe, it's a good thing to just talk about nice things rather than knowing the deepest-darkest truths. People who were successful in this business did not achieve it overnight and I tell you it's not easy, it's not even for the faint-hearted. Maybe, some were lucky but majority end-up desperate and betrayed.

 

[Le Ngoc]

First you have to prepare financial fairly firmly. Real estate investment should be long-term investment, avoid short-term surfing because if you do not pay attention you will worry about paying bank interest. It is possible to explore the remote areas a little bit, in the future it can grow. Then you will earn quite money.

 

[Sparjo]

Rwal estate investment is a very good one, especially in developing countries where the demand for good housing is in high deman.

So i think to really make it nig with small sum, you need to look at lrospect from developing countries

 

[Chaoticas]

A family friend has made a fortune
from buying properties, renting them
out then selling at the right time. In
our city property prices are high and
despite the recession there hasn't
been much of a dip in prices.

His advice when I bought my place
was to keep an eye on the planning
permissions listings at the local city
council!! By watching them you get
an idea of the rougher areas that are
likely to be regenerated such as old
houses, disused factory sites being
demolished and new homes, schools,
shops, etc being built.

He buys when the areas are still what
most would class as poorer areas. He
still more than covers the mortgages
and his own lifestyle with renting the
properties for a few years. Meanwhile
the area around gradually improves
and the property values rise then he
sells and starts again.