Real
Estate is one of the oldest forms of investing known to man.
Real
Estate investing is easy and fortunes are made in a simple
manner.
For example, and investor decides that a desert area will
eventually
become an industrial development. He purchases a
number
of acres at a very low price. If his guess turns out to be
correct,
ten years later he sells the land hundred times more
than
what he paid for it. This can happen in any part of the
country
and is not an exceptional case.
As
the population keeps growing in the U.S., land prices continue
to
raise and it means that Real Estate will continue to offer one
of
the best investment opportunities in the country.
Compared
to most forms of investment, Real Estate offers greater
profit
potential. Of course, not every piece of land will turn
out
to be a winner, and despite the great potential rewards in
some
cases risks are involved, so the necessity of careful study
before
invest.
One
of the problem of Real Estate is his lack of liquidity.
Liquid
assists are those easily converted into cash like stocks
or
bons. Most Real Estate investments take years before you can
make
some money, so it is not wise to tie up all your assets in
this
type of investment. Your financial situation will determine
how
much you can wisely invest in properties.
There
is a difference between a land speculator and an investor.
A
speculator buys land with the intention to make a quick sale
and
fast profits and will not hold land for a long period of
time.
An investor, on the other hand, looks for a long time gain,
and
usually buys only what he can afford to keep for an
indefinite
period of time.
If
you are new at this field, it is wise to refrain from any a
speculation
until you become more informed, and you will have to
devote
considerable time to study and research. It is wise also
to
consult specialists before you act.
Without
realizing it, you already made a very successful
investment
in Real Estate if you bought your own home.
Before
you look for areas to invest, consider the condition of
your
own house. If you have any plan for selling it, good
landscaping
has been known to considerably increase the value of
a
home.
Large
profits can be attained by purchasing run-down homes and
restoring
them for eventual selling, but some factors have to be
considered:
*
You must know something about architecture and remodeling and
get
and idea of how much it will cost to get the house back into
shape.
Consider what you will be able to do yourself and what it
will
cost you if you have to have it done.
*
The location of the house is the most important factor to
consider.
Study the neighborhood, shopping, and transportation
facilities.
It
can also be profitable to lease land for commercial use. Land
which
borders highway is extremely valuable for purpose such as
warehouse,
gas station, etc.
Land
development companies frequently run advertisements offering
country
retreats. Be wary of these offers as they themselves make
a
large profit at the time they sell you the land, so it is much
more
profitable for you to buy your own.
When
you buy property, buy at a price that involves a minimum
financial
risk. Invest only a modest amount of your own capital,
when
you sell, determine if a cash or installment sale is the
best,
based on your over-all income tax status. Learn by looking
back
on the mistakes made in the past and by reviewing the
opportunities
you have missed.
Prepare
a list of all properties available in your area and think
up
the best future use of the properties. Learn to
purchase land
before
there is a demand. To buy land well in advance is the only
economical
way at today's prices. Then hold the property until
you
can resale for large profits. Don't sell all your desirable
properties
and keep just lemons.
If
you are willing to leave the cities, you should not have any
trouble
finding inexpensive land for sale. If you discover a
tract
of land appealing to you but not listed for sale, contact
the
Country Register's Office and he will tell you who is the
owner.
Get in touch with him and he could be willing to sell.
As
a rule purchasing tracts of land within thirty miles from a
growing
city is often a sound investment. Deal only with
qualified
realtors. Be careful of individuals who offer quick
profits.
Before
taking any action, study what has been written about the
subject.
Know why you should and should not buy. Stay
conventional
and don't buy white elephants. Look for hidden
defects
and make the property attractive before offering it for
resale.
Study local conditions and be sure it is practical.
Constantly
look for bargains and quality properties with
exceptional
features that will make the sale easier. Follow up on
For
Sale signs, make inquiries.
When
discouraging elements occur, minimize your losses by
whatever
means available. Don't throw away money on repairs for
poorly
located property or in an area of surplus rental units.
Before
you attempt to sell, find out how the prospect can use the
property
profitably. Ask yourself if you would purchase it if you
were
in the prospect's shoes. Ask yourself if the future use will
fit
any of the many types of specific businesses. Can a hospital,
a
bank, an apartment complex, condominium or professional
building
be located on the property.
Learn
to analyze the pros and cons of a real estate problem.
Break
it down into its various elements. Know if the answers you
come
up with are satisfactory and practical. Try different
approaches
to the problem.
You
are necessary looking for the "top" or "bottom" of the
market,
or the current economic situation. You are looking for a
variety
of properties which have a higher value dependent on the
use
that can be established for them.
There
are always opportunities in Real Estate during good times
and
bad, but it is up to you to pick and choose only those very
best
deals, especially during times when it appears that Real
Estate
values and demand have reached their peak or in times when
it
is practically impossible for most anyone to get bank loans
due
to the tight money market or impossible interest rates.
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