|
Beginners Real Estate Investing Guide
Real Estate Investing - Ask
Questions Before Making an Investment
First Time Real Estate
Investor
Real Estate Investing - Planning
Your Investment Strategy
How to Find Real Estate
Investment Properties
Getting a Professional Home
Inspection
Large Profits From Inexpensive
Real Estate Repairs
Real Estate Investing - Costs
and Fees
Real Estate Insurance
and Risk Management
Real Estate Investment Risk
Part 1
Real Estate Investment Risk
Part 2
Getting The Best Return For
Your Investment
Creative Financing
For Real Estate Investors
Real Estate Investment Tax
Considerations
Real Estate Rental Properties
- Great Investment or Nightmare
Real Estate Foreclosures - Great
Deal or Headache
Flipping Real Estate for Profits
Slow Return On Real Estate
Investments
Negotiating for the Best Possible Real Estate
Deals
Real Estate - A Time to Buy and a Time
to Sell
Creating Your Real Estate
Investment Strategy
Investing and Growing
Your Real Estate Portfolio
Commercial Real Estate
Investing
Real Estate Marketing
Understanding Real Estate Law
Do You Need An Real Estate Agent?
What The Real Estate Mortgage
Lender Sees
Do You Have A Career In Real
Estate?
Rural or Urban Real Estate
Investments?
Real Estate Investing on the
Internet
Real Estate Investing
- Property or Paper? |
Real Estate Investing - Introduction
Real Estate Investing - Investing and Growing Your Real Estate Portfolio
Investing can be very confusing. Nobody invests - or should not invest -
without thoroughly researching the potential investment, and often, sorting
through all of the details can be daunting. You have to be able to balance
the potential risks of the investment, against the potential gains. This
is why we often use professional investment advisors to help us make such
decisions.
Of course, any true investment professional will tell you that you should
diversify your portfolio, and avoid putting all of your eggs in one basket.
A good portfolio will include stocks, bonds, and other types of savings and
investments. You should never commit more than 30% of your investment assets
into more than one category of investments.
Investing in commodities is best left to well experienced and smart investors,
as it requires alot of time in closely watching the market. Gold, oil, coal,
and other commodities markets are very volatile and risky. Investing in options
and other commodity mutual funds and indirect investments are usually a great
deal less risky, but should still be left to those who have a clear understanding
of what they are doing.
Real estate is always a good investment, and it should be part of any good
portfolio. Real Estate Investment Trusts (REITs), options, and property mutual
funds, as well as other mortgage backed investments are readily available,
and easy to obtain.
REITs are groups or businesses that invest in real estate. This real estate
may include office buildings, hotels, apartment buildings, or shoping centers.
There are three different categories of REITs: Equity REITs, Mortgage REITs,
and Hybrid REITs.
An Equity REIT invests in or owns reals estate that makes them money in the
form of rents, such as office space that is leased. Mortgage REITs lend money
to owners and developers to build, or to invest in real estate that is mortgaged.
A Hybrid combines these two other types of REITs. In order to be eligible
for an REIT, the group must pay 90% of it's annal taxable income to shareholders,
invest 75% of its assets in real estate, and also earn at least 75% of its
annual gross income from intestments in either mortgages or real property.
Options work differently. A potential investor or buyer offers an option,
which takes a property off of the market for a specified period of time.
Option offers can cost anywhere from several hundred dollars to several thousand
dollars. Sometimes, an option will only bind one party to a contract, and
this is called a bilateral. The contract may bind one or more parties to
things such as inspections and financing, but there is always a time limit.
If the option isn't exercised - or taken - by the specified time, the potential
buyer loses their money. Again, this is risky, but it can also be incredibly
rewarding, because it eliminates other bidders on the real estate.
Remember the word 'real' in Real Estate. This should be the other part of
your portfolio. Portfolios typically having you buying and selling investments
on paper. Real estate - buying and selling real property, whether short term
or long term, has proven to be the least risky investment that there is.
There are still risks, of course, but the risks are a great deal less than
that with other types of investing.
Before you start doing any type of investing, you need to educate yourself
in the various investment markets and investment laws. When you educate yourself,
you will be able to reduce costs such as agent fees, property repairs, and
get in when the interest rates are low. You should, of course, ensure that
you have enough cash or other assets that can be liquidated quickly, so that
you can hold onto your investments until the price has gone high enough for
you to sell. When you add real estate to your portfolio, you will seldom,
if ever, have any regrets.
 |
 |
Previous |
Next |
|
Beginners Real Estate Investing Articles
How to Advertise a Rental
Property
How to Build Equity
in any Real Estate Market
How to Find Motivated
Sellers
Developing a Profitable Real
Estate Investing Strategy
Bird Dogging: Getting Started in
Real Estate Investing
Buying Your First Home
Using Lease Options to Purchase Real
Estate
Real Estate Foreclosures
Increase Your Net Worth Through
Real Estate Investing
Interest Only Mortgages
Real Estate Investing
No Money Down Real Estate
Investing
The Power of the Lease Option
Real Estate Investing Tips
Real Estate Investments
Refinancing Your Mortgage
Loan
Paying Your Mortgage
Selling Your House without a
Realtor
"Subject To" Real Estate
Financing
Using Trusts as a Real Estate
Alternative
Search for Beginners Real Estate Investing Information
|
