I was chatting with a friend on what best to do to get a steady source of income and he talked about investing in real estates. i’ve never done real estates investment so i’ll like to know if its a sure way to make good money
Investing in real estate has been one of the hottest business trends today. The industry has proved to be very profitable despite the shaky economy that we are currently facing. Through the years, it has made many millionaires and billionaires – beginners and experienced alike. What does this entail? This simply means that one does not necessarily need to have a solid real estate background. All it takes is firsthand real estate mentoring along the way and you are sure to useful insights which you may want to apply in your business. Below are some mentoring tips to help you get started:
1. Find your niche. Real estate offers a wide range of areas to choose from – rehabbing properties, flipping houses, wholesaling houses, rental properties and many others. Before you take your pick, take time to evaluate your strengths and your weaknesses not only as an investor but more importantly, as a person. Will you be good at rehabbing? Or do you think wholesaling houses will be best for you?
2. Always make sure that you buy the right property. One very important reminder to keep in mind when investing is to purchase the right property. One of the common mistakes that new rehabbers make is buying a property located in high-demand areas. Experienced investors think that houses located in low-profile areas make more profits than those located in classy neighbourhoods.
3. Join an REI Club. Joining a real estate investment club gives you the chance to expand your network. More than just that, it also gives you the chance to learn continuously. Ask around and observe. The best real estate coach is the one who have experienced the industry themselves.
4. Where will you get your financial capital? Will you get your capital from your personal savings? If you plan to borrow from banks or other traditional lending institutions, keep in mind that you will be asked to pass a wide range of documents to get your loan approved.
5. Do not dream too big on your first project. If you want to make sure that you will succeed, keep your first project simple and feasible.
March 10th, 2010 at 5:34 am
Don’t. You’ll end up losing all your money.
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March 10th, 2010 at 6:13 am
I never play with fire and I would really only invest in estate if you really want to live in one or something.. In this economy, nothing is really profitable.. Real Estate? Imagine if you were stuck with that property without being able to sell it later on because just no one has the cash to dish out for it.. That would be a huge fiasco. My parents are stock holders and they have lost most of their life with it. Do not play with the real estate if you are not a professional, and even if you are, just don’t do it. Just earn money the hard way. In the end, it’s all worth it, trust me.
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March 10th, 2010 at 6:29 am
It depends on how much money you start with.
People always need places to live. Most don’t live in a home they own, so they rent.Rent is often up to 35% of their disposable income. So,it makes sense to have a rental property.
That said, renting does have its drawbacks;there are always times when a place isn’t rented, and you have to cover the costs,as in mortgages and municipal taxes/rates, land rent (if it’s leasehold land), body corp fees, and a whole slew of other expenses that are normally covered by the rent.Tenants can damage a place, which means repair bills that need to be covered,and their bond payments don’t necessarily cover enough.
If you have enough property rented out, and can cover the rest from other income, it’s a steady way of making money.
But only if you have enough money to do the thing in proper scale.
References :
March 10th, 2010 at 6:38 am
Investing in real estate has been one of the hottest business trends today. The industry has proved to be very profitable despite the shaky economy that we are currently facing. Through the years, it has made many millionaires and billionaires – beginners and experienced alike. What does this entail? This simply means that one does not necessarily need to have a solid real estate background. All it takes is firsthand real estate mentoring along the way and you are sure to useful insights which you may want to apply in your business. Below are some mentoring tips to help you get started:
1. Find your niche. Real estate offers a wide range of areas to choose from – rehabbing properties, flipping houses, wholesaling houses, rental properties and many others. Before you take your pick, take time to evaluate your strengths and your weaknesses not only as an investor but more importantly, as a person. Will you be good at rehabbing? Or do you think wholesaling houses will be best for you?
2. Always make sure that you buy the right property. One very important reminder to keep in mind when investing is to purchase the right property. One of the common mistakes that new rehabbers make is buying a property located in high-demand areas. Experienced investors think that houses located in low-profile areas make more profits than those located in classy neighbourhoods.
3. Join an REI Club. Joining a real estate investment club gives you the chance to expand your network. More than just that, it also gives you the chance to learn continuously. Ask around and observe. The best real estate coach is the one who have experienced the industry themselves.
4. Where will you get your financial capital? Will you get your capital from your personal savings? If you plan to borrow from banks or other traditional lending institutions, keep in mind that you will be asked to pass a wide range of documents to get your loan approved.
5. Do not dream too big on your first project. If you want to make sure that you will succeed, keep your first project simple and feasible.
References :
Real Estate Investing http://www.realestateinvestingrichesroadmap.com/