From
Buyincomeproperties.com
Real Estate Investing Strategy & Tips
By Buyincomeproperties.com
Oct 13, 2005, 02:55
The lead off questions you should raise about real estate investing, are inquiries for you to ask yourself. Are you cautious when investing in real estate? Do you venture into some moderate yet creative real estate investing? Or are you a speculative investor, buying investment properties in carefully researched neighborhoods using the real estate investing advice of specialists like The Property Investors Club.
Which commercial real estate investing do you show preference for? Why not begin cautious, but then quickly learn to become a speculative real estate investment buyer like the big money making professional investors.
To begin with, if you are an elderly person or getting started in real estate investing, you may want to begin in a cautious manner. Perhaps you may start by purchasing an investment home, one that you can rent out until you can flip it for double the profits.
For instance, real estate investing in a Florida mortgage has set annual records for multimillion-dollar home sales in 2004 in Orlando. The Winter Park based president of Fannie Hillman, noted that 238 homes were over $1 million in Central Florida last year, up from 135 million in 2003.
Accordingly, those cautious in real estate investing buy completed new-builds or near completed investment property from reputable builders sold in well established areas with a genuine discount in mortgage rates and a 150%+ gross.
Why such unprecedented growth? The abundance of real estate investing information has helped the amount of new buyers to keep doubling, "Three years ago, we had less than 100 multimillion-dollar homes on the market," says Hillman. True, some of the growth has come from speculative investing in real estate construction activities.
Yet, as mentioned, even the cautious elderly are investing in real estate. Yes, the “well-off-over-50” multitude, or WOOFs, are buying second homes for investment real estate and making great rental revenue by their Florida real estate investing. It is advised that these senior citizens obtain the best mortgage rate, a fixed one to minimize risk.
Still, a superior real estate investing strategy comes with as little as one year’s education perhaps in real estate investing courses and true-life training. This real estate investing wisdom will incite you to make the big hard cash of a speculative investor.
Yes, a speculative practitioner of real estate investing will buy off-plan purchases that are yet to be built plans from developers, those that boast a low rate mortgage and that will have strong rental demand or strong buy and stay demand.
The benefits of selling your investment property before the building is completed is that then, you may have no need to acquire a mortgage, no need for future management of that investment home, no homeowners insurance, no stamp duty excised on the sale and foremost, a leveraged capital gains potentially of 10%-100%'s promptly.
Here are some quick tips to follow when gauging investing real estate opportunities.
First, be careful of expensive membership in a real estate investing club. Do they really have enough mortgage investments and real estate leads to sell?
Always seek real estate investing advice from experienced professionals and other investors like those who attend real estate investing courses and seminars and training.
And always check the comparable investment properties to evaluate the discounts many of which have been inflated by vendors.
One example of a real estate investing area that has not been inflated and that is providing enormous gains; is the Texas mortgage market. There CB Richard Ellis Inc. has been “seeing record numbers in investments, for real estate in general:” office, multifamily, retail and industrial. “Industrial is very popular because ... it has reliable yields and offers a good hedge against inflation. As construction costs increase and prices go up in the rest of the economy, industrial real estate stays right there with it.”
Of the $4.1 billion in sales in 2004, about $445 million, involved Dallas-Fort Worth properties. Baird said the Texas mortgage market, particularly North Texas is in the top five industrial mortgage leads for sale in the country. “It ranks right up there with Chicago, Los Angeles, Atlanta and northern New Jersey,” he said.
Remember, if you carefully research investing in commercial real estate and you continue using real estate investing private financing and real estate investing software specialists then you too will continue in hard cash, while roofing many heads.
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