Daily News

MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

Real Estate Investing 101

(Although the real estate market has been slowing down lately, it cannot stay that way forever and still proves to be a very profitable endeavor to put money into.)

Historically, real estate has been known to appreciate over time and continue to make money.

Things may seem bad because we keep comparing them to the boom that we just experienced from about 2000-2005.

Right now, we are in a bit of a slump with slower than normal sales, but that does not mean that it is still not a good idea to start investing in real estate.

There are many options to invest in real estate from renting out a property you own to “flipping” houses, there are always ways to make money.

A November 10, 2006 article from Quicken Loans and posted on Yahoo’s Real Estate Website, “Investing in real estate can be profitable,” discusses the many ways that smart investors can make money in real estate.

“Purchasing real estate is a good way to invest your money and provide yourself some increased financial security. But, if you're new to real estate investing, you may ask, ‘What is real estate investing all about? What are the benefits to me and how can I get started?’ With today's attractive fixed mortgage and the number of homes available on the market, real estate investing is an ideal financial opportunity.”

Well, real estate investing isn’t as complicated as some people make it out to seem, you will find this out when you purchase your first investment property. Actually, if you are a person who is fairly unfamiliar with investing altogether, real estate can be a great way to start out because it is very safe.

“Real estate is a tangible, cash-generating asset, and appreciates in value. It's not something that can quickly lose value; it remains an excellent, long-term way to invest your money. Real estate investing can provide good return on your investment in the form of increased cash flow through home appreciation and tax-deductible mortgage interest. (Please consult with your tax advisor.)If you're interested in investing in real estate, you can benefit greatly by using your mortgage to build wealth.”

Renting out a property can be a great way to generate additional income, but there are always some things to be aware of. First, you should probably decide if you want to be the landlord, or if you would rather hire a property manager to take care of things for you. “Some properties may need more work that others, but with a little work, it can be turned into a nice rental home. Investing in rental property allows for a steady and reliable stream of cash flow from the rental payments since there is a high occupancy demand for a well-kept and reasonably priced rental property. Theoretically, the nicer the place, the more you can charge in rent.”

If you do not want to deal with renting out your property, then you could consider become a real estate investment flipper. “So if renting is not for you, you can also ‘flip’ your property by purchasing, repairing and reselling it for an attractive profit and could prove for you a better alternative to renting the property out.”

If you want to get started in real estate investments, contact your local LEI mortgage coach or real estate agent for helpful information on how to start building wealth.

Back to Articles