Real Estate For Investment 360

 

Welcome to Real Estate For Investment 360:
A Site to Help Real Estate Investors

 

Real Estate For Investment

This is the first of many real estate for investment articles that will be posted here.  In no way can I describe everything that I have learned to pass on to you in this one article.  However, I do hope to give you an overview here of what you may wish to learn about and of what I will be covering in greater detail in future articles.
  

There Are Many Real Estate For Investment Options Available

So, where do you begin?  It all depends on what your goal is really.  You want to make sure that the strategy that you apply aligns to your ultimate goal.  This goal could be getting income to replace a job that you currently have or it could be building equity that you will later use later.  I will discuss these particular ideas further in upcoming articles.  While there are a number of methods to increase your wealth I personally believe in real estate for investment.  Now, you can start small and invest in REITs (Real Estate Investment Trusts)…. similar to buying stocks you buy into a business that owns a portfolio of residential and/or commercial real estate for investment.  Other options include investing into syndicates which are formed by a group of private individuals that purchase a property.  And of course…you can buy real estate for investment entirely by yourself or with a family member.  In this particular article I will be discussing residential real estate for investment that you personally own by yourself.

Real Estate For Investment – Initial Considerations

 
So, if you have decided that ownership of residential properties is what you would like to do.  The next step is to better define your buying criteria of the property making sure it matches your goals.  If a particular piece of real estate for investment doesn’t meet your financial objective you may be spending a lot more time dealing with additional properties that could be more of a headache than a way to help you get ahead.  One trap that some people get caught into is the allure of a really nice large house, 3,000 sq. ft. 5 bedrooms with a pool, etc…that’s great, however, this is not necessarily the best investment.  Two learning points are presented here, one don’t let your ego take over….remember this real estate for investment.  If it doesn’t provide the cash flow that you want or equity depending on your goal pass on the deal.  Also, I would rather buy many smaller homes, what they call “bread and butter” homes, that may be around 1,200 sq.ft. and are 3 bedroom/2 bath.  Why you might ask?  When looking at real estate for investment you need to again look at the cash flow it will provide, look at the demographics of the property….how likely is it that you can get it rented out again if a tenant moves?   I will be going further into this further in future articles.  When considering real estate for investment you NEED TO DO Your Research.   Also, don’t just rely on others opinions or recommendations, get multiple views from experts in the area.  Once you have this information consider the advice that was given, the source, and their possible intention consciously or not.  If you speak with a realtor, or many of them, you can definitely get good information….however, you need to remember their intent is to make a living and they want for your to buy something from them.  Also be careful from advice from some groups, I’m not big on just relying on say the NAR (National Association of Realtors) to tell me how things are going on.  The NAR might be saying well everything is finally improving, which could be true, however, again it might not be the absolute truth for the area that the property that you are looking at.  You need to know they are a PR group for realtors… again do your own research and be comfortable in knowing about the areas that you may invest in.  It could save you a lot of money later on.
  

Real Estate For Investment – Further Considerations on Location and ROI

 
So, now you a bit better idea of what to start with…however, you need to then consider where you will find real estate for investment, locally or in another state, the return on your investment (ROI), and will you manage the property yourself or have a property management company take care of it.
Again, you need to do your research and know if the property that you are purchasing will meet your real estate for investment goal.  If you live in a high priced area, such as the bay area in California, you may want to really consider if you can achieve your goal faster by buying two properties in another state for the same price.  Even if you live is an area where the prices of homes are lower you need to consider again the demographics and the likelihood to rent the property easily.  As for managing the property, there are variations to managing a property.  Also, sometimes its’ easier to manage a property yourself rather than have a property management company handle your property.  It’s important to interview many companies prior to picking a property management company…and even once you have picked one.  You should watch over the statements that you get to make sure the accounting is done correctly.  For some of the properties that I have I manage them myself…if there are repairs needed the tenants call in the necessary repair companies and deduct it from the rent they send in, and just provide the receipts.
  

Real Estate For Investment – Summary

 
Please note I don’t consider myself to be “The Expert” though I have learned a lot over the years in buying real estate for investment. I have bought over a dozen residential properties and have also been in partnerships in Commercial Real Estate too.  I have learned that there is much more to know…that said, Real estate for investment is something that I do enjoy and know that while the work can be challenging at times that once you have things moving along it’s not that bad.  Moreover, the acquiring of real estate for investment is important towards accomplishing your goals.  I believe I have covered a lot of ground and have in no way given you enough information for you to go out a buy your home…however, it’s a start.  I will be providing additional information that I believe be pertinent for you to have.  So, visit again and if you have something that I might write send me an e-mail:  contact@realestateforinvestment360.com
If you have not already bought Robert Kiyosaki’s book Rich Dad Poor Dad, I do highly recommend it.  It’s not difficult to read at all and it lays the groundwork to your achieving your goals.  Actually, I would read the series of books…since really you can learn quite a bit through them all.  However, I would start with the Rich Dad Poor Dad book first.  It provides the basics which you can build a foundation of knowledge. I have placed it below on the amazon advertising that we have…that essentially supports this site.  However, if you can borrow it from the library or elsewhere….I would do it.

 

 
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Estimating Real Estate Market Home and Rental Values
 
Buying Property With Income
 
Calculating Cash Flow

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