[by andrew harkin]
Real estate investing is not rocket science. All it really requires is a determined individual who is willingto take the time and learn the business. Real estate investing does not require large sums of money,inside contacts, or a magic touch. All that is really necessary is knowledge and that is what you will findin the pages of this book.Tips and Secrets for Real Estate Investing was written with the aspiring real estate entrepreneur inmind. This book is designed to provide you with a no-nonsense approach to real estate investing.Everything you read is of importance and has found its way onto these pages for a specific reason.What you will not find in this book is wordy explanations and complicated information that simplywaste your time. We all know that time is money, and I am here to help you make money, not waste it.With that said, let’s return to the original statement of this introduction, real estate investing is notrocket science. I assure you that as long as you have a will, there is a way. Sure, investing isn’t foreveryone, but you are not like everyone else. You have an objective and you are searching for a way toobtain it. This factor alone separates you from the rest of the crowd. In other words, if you are readingthis, it is proof that you are motivated.In addition, it is crucial that you have the ability to make decisions. I know this sounds simple, butfor some people, decision making is a difficult task. There may be times that you must make difficultdecisions. If you are unable to do so, then maybe this isn’t the investment opportunity for you.There are several traits in a person that can make investing easier. For example, it is helpful if youare organized, computer savvy, and a people person. But none of these things are required of you.Therefore, your first step toward successful real estate investing should begin by studying this book.The more you know and the better you understand the real estate market, the more likely you are tobe successful in it. So, what does it take to become a successful real estate investor? Knowledge andthe ability to make decisions, it is as simple as that.Why Invest in Real Estate?Without argument, there are plenty of ways to turn a profit in today’s economy. So what makes realestate the right option? There are several answers to this question. However, for the purpose of thisbook, we will focus on one primary answer. Real estate investing consistently offers a better return onyour money than other traditional forms of investing such as stocks, savings certificates, commodities,life insurance policies, consumer merchandise, and bonds. Property is extremely versatile. Most piecesof real estate come with a handful of options or different ways to generate a profit. Not only that, butreal estate is almost always appreciating, and when it is not, you can use that to your benefit.Now don’t get me wrong, there are plenty of disadvantages and advantages associated with investingin property. Let’s take a closer look at those factors before moving on.The Advantages of Real Estate InvestingHigh ReturnsAs previously mentioned above, one of the major advantages that come with investing in real estate isthe prospect for high yields. It is not uncommon to see a profit average of 20 percent when investingin a piece of property. In fact, depending on the market, it is possible to experience an even higheryield.High Leveraging OpportunitiesReal estate investing offers the investor the best leveraging opportunities. For example, the cashrequirements are not the same as they are with other investing alternatives like stocks and bondsthat require the purchaser to borrow 50 percent of the value of the securities. In real estate, it is morecommon to invest between 20 and 40 percent of the value of the property. Furthermore, based on themarket and particular situation, it is possible to invest with as little as five percent down.Flexibility with Income TaxWho doesn’t appreciate flexibility when it comes to income tax? When investing in real estate, theinvestor enjoys certain allowances and deductibles. Most notably, common expenses such as insurancepremiums, property taxes, management fees, maintenance feeds, and other operating costs caneffectively reduce your taxable income.Personal ControlNot all investing opportunities are created equal. When putting money into real estate, the investoris able to appreciate a higher level of personal control than when investing in alternative options.Each purchase can be crafted to fit the current situation and property. Property can be refinanced,terms can be adjusted, and investors can rent or sell. Essentially these details are left to the investor.Therefore, the investor gets to decide when and how to move forward with the investment. Maybeit’s not a good time to sell. The investor can opt to rent instead. There are several examples, but thepoint is, when you invest in real estate, you reserve the right to invest and sell under your own termsas determined by what personally and economically satisfies you.The Disadvantages of Real Estate InvestingUnpredictable LiquidityBuying real estate is usually fairly easy. Sometimes it is harder to find a sound investment, but overallthere are always houses or property for sale. The downfall to real estate is you never know how liquidyour asset will be. This is because the market greatly affects and is greatly affected by the overalleconomy. If the economy is in a slump and lenders are not approving loans, it may be harder to sell ahouse than say during the housing boom in and around 2006.With that said, you don’t have to sell your property to make a return on your investment. In fact,there are several ways to earn a profit aside from selling or flipping a house. We will review thesemethods in full detail shortly. For now, just know that by preparing for the worst, you can overcomethe challenge of unpredictable liquidity. Remember, in the long run, investing in real estate is stillyour best shot at a higher return on your money. You need only know what you face going into thesituation.Capital RequirementsAnother primary disadvantage to real estate investing can be attributed to poor liquidity. Dependingon the investment, you may be required to come up with a large amount of capital to put down. Thisvery factor makes it difficult for consumers to purchase property and thus makes your investment hardto liquidate. The good news is I will share with you my techniques on how to avoid the need for alarge amount of capital when investing. You will find this information in an upcoming chapter.RiskMore than likely you already know that in order to make a big game, you must be willing to accept acertain amount of risk. Like all investments worth your while, real estate has some associated risk.It is important that you take a moment and reflect on this fact. Real estate investing is not risk free.While there is potential to earn a great deal of money, there is also the chance that you will losemoney.It is for this very reason you need to educate yourself on the market and investing techniques beforediving in. It is also for this reason that you need to be an accomplished decision maker. If you can’tevaluate the situation and make an educated, fast decision, your risk of failure increases.The market is volatile and heavily dependent on numerous factors. While there are many thingsyou can control as an investor, you have no say in the fluctuation of interest rates and how theyrespond to laws of supply and demand. At any given moment everything is up in the air. Risk is not bedownplayed. Know it, understand it, accept it, if not, it’s time to move on.The Art of LandlordingAsk just about any landlord and he or she will tell you, it’s no easy job. When you invest in real estate,you almost always run into a situation that requires you to become personally involved with the tenantor manager. How you handle landlordism will depend primarily on your interpersonal skills and theother individuals you interact with.Being a landlord can be time consuming and emotionally taxing. While it is possible to have pleasantrelationships with your tenants, it is just as possible to have the opposite. In fact, landlording is amajor deterring factor for some potential investors. It is simply too much hassle. Your feelings on thistopic should be taken into consideration when looking into investing. If you have an opportunity thatrequires landlord duties, perhaps that is not the investment for you. Either way, always make sure tokeep this in mind.Management and MaintenanceAnother downfall to investing in property is the requirement for near constant management andmaintenance. Investing in real estate is a busy business. You have to keep up on everyday livingexpenses such as the cost for a new roof, electrical repairs, plumbing expenses, etc. In order to get asound return on your investment, you may need to enhance or upgrade your property. Managementand maintenance can be a major burden, especially if you didn’t invest in a sound project.As an investor, you may also need to hone your handyman skills. From driving nails to patching holes,your role hat will increase significantly. Most real estate investors are hands on. There presence isrequired for the upkeep and successful sale of the property.SummaryIn summary, real estate investing is not for the faint of heart. To become a successful investor, one mustboast a certain amount of determination and take the steps needed to become educated on the topic.With the right amount of knowledge and understanding, anyone can thrive at investing.Real estate investing is a popular form of investment because it offers a high return on the investment.In addition, investing in property is a flexible venture that leaves the investor in charge 90 percent ofthe time. Lastly, investors enjoy certain tax breaks associated with operating costs that help reducetheir taxable income and thus reduce the amount of income tax they must pay.Real estate investing also has a down side, most notably, there is a certain amount of risk that comeswith investing in property. This is because there are factors that are out of your control including thehealth of the economy, interest rates, and supply and demand. Additionally investing can sometimescall for a large amount of capital. This can be difficult if you don’t have a healthy cash flow. When youinvest in real estate, you may be required to personally assist with the management and maintenanceof your investment. This means your hands are going to get dirty. Finally, investors often findthemselves playing the role of landlord. This position requires keen interpersonal skills and patience. Ifyou aren’t interested in interacting with tenants, landlording is not usually a good investment option
[thanks for reading andrew]
andrew harkin age 40 wife and 4 kids
|View all items...||(Powered by: WP Amazon Ads)|
No comments yet.
Sorry, the comment form is closed at this time.