Real Estate Investing Advice
Real Estate Investing Advice - Most popular
and most helpful
The following real estate investing advice
is taken from various sources and not all entries apply to
every type of Real Estate Investing. They are very useful
though, so try to hold back that question you're dying to ask
until you've read through these below first!
Real Estate Investing Advice #1: Get the Insurance.
(Real estate investment Types 2 &3) Make
sure you have some form of landlord protection insurance. This
will cover you if your tenant leaves without giving notice, if
the tenant causes damage to your property or if they injure
themselves in the property. Most states even require this, in
Real Estate Investing Advice #2: Don't stop at one
residential property investment.
(Real estate investment Types 1 & 2)
Purchasing the second, third and fourth are usually easier than
the first and by having more property you are exposing yourself
to the prospect of greater capital growth.
Real Estate Investing Advice #3: There is safety in
(All types of Real estate investment) Rely
on the numbers and leave emotion out of the purchase. Keep in
mind that you won't be living in the property. All of the
numbers, such as purchase price, rental return and potential
capital gain must play nicely together and make a profitable
bottom line if your investment is going to serve you well.
Real Estate Investing Advice #4: When Selling a property,
consider taking monthly payments!
(Real estate investment Types 1 & 2) It
is natural for all sellers to ask for cash when selling a
property. However, there are greater benefits for not receiving
cash up front. If you receive cash up front, you pay taxes on
the cash and won't be left with much money. Alternatively, if
you have a note on the loan, you will receive interest, which
is most likely higher than you can get at the bank. Overall,
your return would be a lot more because of all the interest.
Furthermore, you get to spread out claiming profits because of
installment sale. You can spread out the claiming of your
profits for as little as one or as many as 30 years, with
better rates for the longer period of payoff.
Real Estate Investing Advice #5: Starting out small is
(All types of Real estate investment) It's
probably not wise to jump into a new kind of investment and
spend big straight away. Start with a lower priced investment
property and a smaller loan. Make sure you have enough money to
cover any little emergencies which may arise. After all, you
have to be able to sleep at night.