Phil Hartog, Real Estate Information

Author: Robert Thatcher
Donald Trump, a real estate tycoon says, “It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate.”

Real estate is the term that covers land and other things that are permanently attached to it such as buildings. It is considered as synonymous to real property or realty. It is the exact opposite of personal property, chattel or personalty.

People behind a real estate investment must be good in purchasing and selling realties. They must buy, develop, appraise and sell lands, houses and buildings wisely in order to do business productively.

For sure, they know how to profit. Not jut ordinary profit but rewarding and fulfilling one.

However, in order to have a financially rewarding experience, you must be knowledgeable with the ins and outs of the real estate investment. Ask your self: Is the business deal you are about to enter into a good deal? How do you know if it is?

You must know first the techniques behind the real estate investment before you can be ready to enter it.

There are also keywords on real estate investment that you have to master and here they are:

1. Wealth flow. The first thing to consider in a real estate investment is the flow of money. You have to ask your self first. Is this realty viable? How persuasive can it be to the target market? Will this investment provide them future income? Aside from those, also ask your self, how important is personal income to you?

2. Leverage. Leverage, with regards to real estate investment, is the use of borrowed funds in order to purchase realty. This is done with anticipation that the purchased realty will boost the profit.

This process is important to investors. This is because the lesser cash you give on each realty the more you can have additional purchases. This does not end here, if the value of the properties soar, the profit will also increase exponentially.

3. Equity. Real estate investment equity may take several forms. These forms include foreclosure, re-zoning opportunity, discount, potential fixer upper and defectively managed property.

There are many ways of generating equity but the best way is buying into equity. You can do this by searching for a seller who wants to dispose of his property and that he is willing to renounce his equity for lesser that its full value.

4. Appreciation. Real estate investment is all about purchasing the right realty in order to realize great profits.

This can be a pretty difficult at times. This is because real estate is speculative and risky. You can be up on one point and down on the other.

5. Possibility. As you have read, real estate investment is pretty risky. If the realty did not appreciate in value, what will you do?

There are different outcomes available in real estate investment. They include overwhelming profits, average income and terrible loss. The latter is the most debilitating of them all.

6. Limited Liability. One of your concerns about real estate investment is the manner in which you can limit your liability. Perhaps, you know already that the real estate investment world is susceptible to unlimited liability. Be cautious of this fact. Be sure to limit your liability up to the maximum extent.

If you have already found a realty that satisfies you investor instincts, you are now more aware of what to do and what to ponder.

Author: Joel Teo
Are you losing money in all kind of speculative instruments like share, bonds and forex and am wondering what asset class to invest in? Why not consider real estate investment with its traditionally higher yields as compared to leaving your money in your bank account. This article will highlight four common strategies that real estate investors use to make money in property investment.

Money Making Method 1 - Purchase run down property and spruce it up

This method involves finding a run down property in a good area that you think has promise for resale and sprucing it up like some of the shows where people do an extreme makeover on the property. Bring along a good structural engineer or architect when you do look for such properties so as to ensure that the renovation works that you have to do will not be so extensive that it does not become worth your while to purchase the property. Since the property is may be rather run down, you need to redecorate and repair it and then you can resell this real estate for a much higher price. The key consideration when investing in this kind of real estate is to keep your renovation costs low but ensure that the basic utilities like the electricity , water and gas pipes are in good working condition. Thus this buy at undervalue and upgrade real investment strategy requires good investment property valuation skills and the ability to keep your costs low.

Money Making Method 2 – Find places with high rentals

Find areas with traditionally high rental returns that outperform the national average and then spend time looking for them and make money from the rentals. Here in this area of real estate investment, spending some time to find the real estate investment that is a bargain is a good idea so that you can get better return on investment.

Some people do not seem to get it that high rental yields are important to a real estate investor and think that most of their customers would pay anything to get a winter residence. I was at a property exhibition recently and spoke to a Spanish Real Estate Agent and when I asked her what the Return on Investment was on a piece of Bulgarian property that she was selling. Not only could she not even understand the concept of ROI but she even laughed off the question of rental yield when I asked her. I am sure she is not alone in his mistaken belief that people buy just because they like the real estate. Thus rental yields or return on investment is critical when you decide what type of real estate investment property to purchase.

Money Making Method 3- Purchase foreclosed property

Most people will know that foreclosed property usually fetches a lower price than the market value since banks are often eager to sell at a price that covers their mortgages or sometimes they just want to liquidate the property. Such properties tend to be auctioned off and you can then resell them for a higher value subsequently. However beware of hidden defects in auction properties and always arrange for a visit down to the property just to check it out.

Two people you should bring with you when deciding on a real estate investment is your professional engineer and your contractor. You want to check for hidden defects in your real estate investment to avoid buying a defective property that would cost loads of money just to repair. Thus purchasing foreclosed property may be profitable if you find a real bargain for your real estate investment portfolio.

Money Making Method #4- Cash Flow Investment

Robert T. Kiyosaki in his book explains this real estate investment strategy. He argues that the best investment you get is when you find a property at a bargain and then purchase it with as much debt as possible and then generate a cash flow from the difference between the monthly rent and the mortgage instalment. This method is highly interesting and requires you to really spend time looking for such a real estate investment that fits in that criteria.

Remember that real estate investment is dependent on rental and the higher the proposed rental the better your monthly cash flow is. You could also purchase the property at a lower price and this would mean that your monthly cash flow would improve. Note that once your property is partly paid up, you can refinance your loan and extract out some money and purchase a second property and so on. Soon you would have multiple streams of income from the purchase of one real estate investment property.

In conclusion, there are many ways to make money from real estate investment and what’s missing is massive action on your part. Take massive action and start hunting for your ideal real estate investment property today and start generating substantial real estate investment property profits.