Many people have made millions in the property investing field by following some basic rules. Yes, many believe that the economy in its present state makes real estate investment a dangerous undertaking, but this is far from true. As long as one is careful when choosing the houses he buys he will make a profit.
Buy land that has equity value but do not buy at market value. The way the economy is situated, land will not go up in value dramatically in the near future. This is why it is important to concentrate on land that already possesses a measure of equity.
If buying a house for the purpose of renting, choose an area conducive to family living. Renters choose neighborhoods that are safe, well kept, and near schools for their children. Some houses might seem bargain priced, but in many cases bargain priced houses are in crime ridden areas and will be difficult to rent.
There are two sources of financing for the real estate investor, the bank, and private lenders, people who are looking for a high return on their investments. There is nothing wrong with trying to obtain a loan from a bank. If it were not for banks, investment would be impossible for most people and businesses.
The investor who seeks financial backing from a private money lender does not have to fill out loan applications and does not have to wait weeks or even months to be approved. The private lender is searching for an investment in which he can earn more than what the ordinary certificate of deposit pays. Some private investors, working with real estate investors, are earning upwards of fifteen percent on their money.
The private money provider is protected by the land itself, that is, his name is on the deed. He can arrange a sale of the land at any time and recoup his money. The private investor wins because he can earn a much higher return on his money than any CD could offer and the real estate investor wins because he does not have to go to a bank and ask for a loan.
Now is a great time to enter the field of property investing because land prices are at an all time low. Purchase homes that already have equity because land values will most likely not go up in the near future. Search for private money lenders who are eager to earn high rates of return on their money, higher than what a CD offers.
Buy land that has equity value but do not buy at market value. The way the economy is situated, land will not go up in value dramatically in the near future. This is why it is important to concentrate on land that already possesses a measure of equity.
If buying a house for the purpose of renting, choose an area conducive to family living. Renters choose neighborhoods that are safe, well kept, and near schools for their children. Some houses might seem bargain priced, but in many cases bargain priced houses are in crime ridden areas and will be difficult to rent.
There are two sources of financing for the real estate investor, the bank, and private lenders, people who are looking for a high return on their investments. There is nothing wrong with trying to obtain a loan from a bank. If it were not for banks, investment would be impossible for most people and businesses.
The investor who seeks financial backing from a private money lender does not have to fill out loan applications and does not have to wait weeks or even months to be approved. The private lender is searching for an investment in which he can earn more than what the ordinary certificate of deposit pays. Some private investors, working with real estate investors, are earning upwards of fifteen percent on their money.
The private money provider is protected by the land itself, that is, his name is on the deed. He can arrange a sale of the land at any time and recoup his money. The private investor wins because he can earn a much higher return on his money than any CD could offer and the real estate investor wins because he does not have to go to a bank and ask for a loan.
Now is a great time to enter the field of property investing because land prices are at an all time low. Purchase homes that already have equity because land values will most likely not go up in the near future. Search for private money lenders who are eager to earn high rates of return on their money, higher than what a CD offers.
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