Tag Archive | investing in real estate

Entrepreneur Tips: Investing In Real Estate

real-estate-investmentIf your business is doing well and you have excess cash flowing into your bank account, then you’ll most likely be looking at the best places to put that money to ensure it’s just as lucrative in thirty years as it is today.

Of all the options you have, none are as stable as real estate. While markets can come and go, a healthy real estate portfolio can become a gift that keeps on giving.

However, investing in real estate isn’t just a matter of buying a house and waiting for the monthly check to land on your door before selling for a big profit. It takes hard work. But put the time in and you’ll be keeping your money safe while also topping it up.

Knowing the Area

The first key to buying a property is: know the area in which you’re buying. This cannot be stressed enough. If you’re new to the area and don’t do enough research about the area in which you’re buying your property, you’re asking for troubles that will be difficult to untangle later on down the line.

It’s not enough to just know the property – you also have to a good knowledge of the neighborhood’s pros and cons and beyond.

Get the Help You Need

You’re an entrepreneur, not a real estate guru. Even if you have an eye for finding a deal and an intuition strong enough to make any purchase you make a success, you’re unlikely to have the in-depth knowledge required to make a real estate venture as prosperous as you like.

The world is full of people who rush into real estate deals, and they’re usually the first ones to end up losing their money. Don’t add your name to the list. Speak to the experts and you’ll be in safe hands.

Where to Invest

If you’re not interested in investing in individual properties, you can always look at investing in real estate development. This limits your risk while also ensuring you get a vital grounding in real estate education. There are usually additional costs involved, however, as you’ll be maintaining multiple homes. Additionally, there is usually many more admit tasks to take care of, though there is help available:

There are usually additional costs involved, however, as you’ll be maintaining multiple homes. Additionally, there is usually many more admit tasks to take care of, though there is help available: view website to learn about HOA management. In all, real estate projects offer entrepreneurs an opportunity to make a greater investment; with, of course, similarly high-profit margins.

Set the Bar Low

With that being said, in the early stages, it’s best to follow the general rule of setting the bar low. There’s much to learn in real estate, and it can take years to acquire the knowledge that’ll enable you to strike out into the real estate world confidently. When you’re just getting started, talk to all the right people and be ready to follow the

When you’re just getting started, talk to all the right people and be ready to follow the tried and tested methods of real estate success. Also, as with every other big investment you make, only sign the check if you feel 100% secure in the agreement you’re entering into. If it doesn’t feel right from word go, it won’t ever feel right!

 

3 Biggest Risks when Investing in a House

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A lot of people see the process of investing a house as a simple one. But there are a few risks involved in the process that could seriously harm the overall value that you end up with.

Remember: even if you’re looking for a place to call home, the property should still be seen as an investment. Here are the risks you need to mitigate when investing in real estate.

 

1. Bank loans

It makes sense that someone would go to a bank in order to secure a loan to buy a house. It’s the first stop for pretty much anyone who wants to get their hands on some capital.

And it’s not as if there are many people out there who can buy a home without getting some help with that capital, right? For some people, it makes sense to get a regular loan instead of going through more formal methods of mortgages.

But loans are rarely a good way of beginning an investment. It’s better for the capital to be yours. If you’re just looking for a home for your family, then loans and traditional mortgages might be right for you.

Investments are a different story. As with any loan, you need to make sure you read the small print. You may find that the traditional loan arrangements offered by your bank aren’t great for real estate investment. The interest rates are rarely as fluid as you need them to be.

 

2. Crime

Crime is one of the biggest worries for anyone interested in buying a home. This doesn’t just go for someone who’s planning to live there. Real estate investors also need to worry about the crime rates in the neighborhood, as well as the potential for crime already in the home.

It’s not as uncommon as you may think to find squatters on a property you wish to purchase. Dealing with that can be quite tricky, though generally the law will have your back.

The more obvious worry is that of neighborhood crime. But despite the widespread worry, people don’t often check the local statistics before buying a property. You may assume a neighborhood that looks beautiful is safe, but it could be a hotbed for thieves.

Similarly, a seemingly downbeat corner of town might actually be one of the safest in the state. Check for crime statistics in the area before you make any investments. You might end up with great potential buyers who suddenly get scared off by the crime rates!

 

3. Structural problems

The biggest problems with a house aren’t always very obvious. Sure, when you were looking around you may have noticed a few things you’d like to fix. Maybe there were some cracks in the walls.

Maybe some paint was peeling. Perhaps there were some loose shelves. But the really serious structural problems of a home aren’t always clear when you’re giving the place a look around.

 

4 Benefits of Investing in Real Estate

 

 

Real-Estate

The term real estate refers to land and any other physical property that is on that land such as buildings, landscaping, mines and water resources. The real estate market has gained a lot of popularity in the recent years due to it continuous growth making it the best investment alternative to many investors due to its higher returns.

 
Real estate investment can be effected through REITS (Real Estate Investment Trusts) or purchase of rental properties. It has surpassed other investment sectors in the world’s economy. But what are the attributing factors? The growth of real estate market can be ascribed to the following factors.

Population Increase

The population growth rate has continued to rise globally due to improved quality life. With the recent technological advancement and quality medical care, the world has experienced gradual population increase.
Due to the fact that land size is constant, there has been increased land demand as more people seek shelter and properties. Thus, the higher the demand, the more attractive venture real estate investments have become.

Easy access to Mortgages

Financial institutions have continuously  provided affordable mortgages to real estate investors. Provision of funds necessary to kick start real estate projects is easily available with some of the financial institutions lending at lower rates as 10-13%.
Other features that have recently been introduced includes; the 105% financing strategy where the lenders caters for all mortgage processing cost.

Loans repayment periods have been lengthened from 12-15 years in the past to a maximum of 30 long years. This has made borrowing favorable and attractive to aspiring real estate investors.

Technology Advancement

Various technological innovations such as internet and building technologies have improved the accessibility of information on diverse properties globally.

Availability of low-priced and quicker methods of building, raw materials, and other aspects that pertain to real estate sector has positively transformed the industry into a lucrative business venture.

Government Subsidies

The real estate industry has received a significant boost where government worldwide has provided subsidies and tax incentives to real estate investors.

This has influenced many investors to venture into real estate sectors as compared to other investment option. Various governments have also provided low bearing interest rate mortgages to its workforce thus, making it easier for them to buy properties.

Benefits of investing in Real Estate:

Lifetime investments: The rent collected from the properties makes this a lifetime ongoing source of income.
Collateral: The properties acts as collateral for credit when the need arises.
Lifetime appreciation in price: Real estate has over the years appreciated in value unlike other forms of investments such as stocks’ and bonds’ earning that keeps on fluctuating. This makes real estate investment idea.
Taxes: Property owners pay fewer taxes on the property income as compared to other sources of income hence more money in the pocket.