Real estate investment is lucrative
Apply the following five principles to your real estate investment, and you might start seeing an increase in your real estate income.
The money is made in the purchase: Real estate investing is like value investing in stocks and you want to purchase the real estate during a period of a real estate slump. The reason for this is so that you can get a huge capital appreciation when the real estate market heats up again.
Monitor Cash Flow: Real Estate investments typically have a monthly rental income, which then is used to pay for mortgage installments and other problems with the building like a roof leak. You would thus have to keep a close watch on interest rate hikes since they can potentially erode any calculated return on investment quite quickly. Once you have enough cash coming in, it is suggested that you then keep some of it in a rainy day fund in case some of the rental tenants do not renew their property, and then take the rest and consider investing in another real estate investment property.
Leverage on other people’s time: By focusing on what you do best and getting other people to do the rest of the work, you are leveraging on their time and you can then make more money from each new real estate investment that you undertake. Spend your time to build your team of advisors and employees who work for you and you will see your profits start going up.
Use leverage with a good rainy day cash balance: You want to leverage as much as you can so that you can control property worth many times more than what you own. Remember however to keep a rainy day fund containing a portion of the rental payments so that you can hedge yourself against a possible period where unit occupancy of your real estate investment is low. Leverage when used well can make you lots of money but if managed badly, will bankrupt you. Thus planning your cash flow and learning how to use debt is critical before you start serious real estate investment.
Spend time networking with real estate professionals: The best way to learn the latest real estate investment deals is to make friends with the local real estate professional group. They can tell you about recent developments and changes in rental, property and infrastructure of their geographical location.
The money is made in the purchase: Real estate investing is like value investing in stocks and you want to purchase the real estate during a period of a real estate slump. The reason for this is so that you can get a huge capital appreciation when the real estate market heats up again.
Monitor Cash Flow: Real Estate investments typically have a monthly rental income, which then is used to pay for mortgage installments and other problems with the building like a roof leak. You would thus have to keep a close watch on interest rate hikes since they can potentially erode any calculated return on investment quite quickly. Once you have enough cash coming in, it is suggested that you then keep some of it in a rainy day fund in case some of the rental tenants do not renew their property, and then take the rest and consider investing in another real estate investment property.
Leverage on other people’s time: By focusing on what you do best and getting other people to do the rest of the work, you are leveraging on their time and you can then make more money from each new real estate investment that you undertake. Spend your time to build your team of advisors and employees who work for you and you will see your profits start going up.
Use leverage with a good rainy day cash balance: You want to leverage as much as you can so that you can control property worth many times more than what you own. Remember however to keep a rainy day fund containing a portion of the rental payments so that you can hedge yourself against a possible period where unit occupancy of your real estate investment is low. Leverage when used well can make you lots of money but if managed badly, will bankrupt you. Thus planning your cash flow and learning how to use debt is critical before you start serious real estate investment.
Spend time networking with real estate professionals: The best way to learn the latest real estate investment deals is to make friends with the local real estate professional group. They can tell you about recent developments and changes in rental, property and infrastructure of their geographical location.
Labels: Almaden valley, buy, buyer, conditions, Dale, glen, homes, Jose, market, offer, price, properties, realtor, san, sell, seller, Warfel, willow
posted by nancy_lbn @ 10:34 PM
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