How does investment in real estate work ? you buy a house or land, keep it and then sell it later with some?
profit! is it that simple ?!!! is so, what cities or states here in US have the best potentail for Real Estate Investment ? I know that sillicon valley is a great place but some people say it has already rised too much and I better find somewhere else. What do you think about this
It is a very large topic. There are many different ways to invest in RE. Each market is different and what works in a specific market will change over time as conditions change.
You can do some reading on the web. Go to my blog and look for the link to CREONLINE. They have a lot of how to articles and other useful info.
Also go to the library or large bookstore. Pick out a few books and start reading. At the bookstore decide which ones you have just skimmed are worth more study and buy them.
I started investing in Silicon Valley a long time ago. Many times it is best to start where you live. That is what I did. A friend decided that prices were too high so he started by investing in Las Vegas. Prices were a lot lower there at the time and he did very well even with the added overhead of investing at a distance.
You will not get rich overnight. Expect to work at it for a while. The key to successful RE investing is to get time on your side. That means buy now (more or less) and hold for a while so that the market can rise and falls as it will do. Over time the market will rise more than it might fall so you really multiple your gains (assumes that you used leverage and that the tenant is covering the cash flow).
Some markets are over priced relative to the rents. In those markets it might be better to buy low and sell higher short term to build up cash so you can afford to later buy and hold.
There are many strategies so no need to force a bad strategy. Spend a bit on some books and learn what is possible.
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It depends on what kind of investing you want to do. There is long term investments where you buy and rent out the property long term riding out the quity gained and then there is flipping properties where you hold on to them 1 year max. Hot markets depend on risk involved and what kind of investing you are looking to do. CA is good for flipping, while GA and AZ would be better for long term investments.
References :
It is a very large topic. There are many different ways to invest in RE. Each market is different and what works in a specific market will change over time as conditions change.
You can do some reading on the web. Go to my blog and look for the link to CREONLINE. They have a lot of how to articles and other useful info.
Also go to the library or large bookstore. Pick out a few books and start reading. At the bookstore decide which ones you have just skimmed are worth more study and buy them.
I started investing in Silicon Valley a long time ago. Many times it is best to start where you live. That is what I did. A friend decided that prices were too high so he started by investing in Las Vegas. Prices were a lot lower there at the time and he did very well even with the added overhead of investing at a distance.
You will not get rich overnight. Expect to work at it for a while. The key to successful RE investing is to get time on your side. That means buy now (more or less) and hold for a while so that the market can rise and falls as it will do. Over time the market will rise more than it might fall so you really multiple your gains (assumes that you used leverage and that the tenant is covering the cash flow).
Some markets are over priced relative to the rents. In those markets it might be better to buy low and sell higher short term to build up cash so you can afford to later buy and hold.
There are many strategies so no need to force a bad strategy. Spend a bit on some books and learn what is possible.
References :
http://johncorey.wordpress.com
As a RE investor for over 20 years (multiple states & countries) I enjoy helping others with their RE questions. The link about takes you to my blog where I am running an Frequently Asked Questions dialog. Please ask questions if you want to know something specific. Or just add comments as to your experience as a real estate investor.
You can make money in real estate in two ways: by operating the property, and collecting rents which are in excess of expenses, and by selling it at a profit. Real estate often appreciates over time, so if you buy a parcel and keep it for a while, you will probably make out. But the best way to make money in real estate is to buy property, modify it in some way so that it is more valuable, and then sell it. Fortunes have been made in this way.
References :
Despite today’s market conditions, real estate investment can be very lucrative. The most money is made from people that buy from bank foreclosures, or from HUD/VA homes, fix them up, and then either rent them out for more than your mortgage and escrows, or sell them. If you wish to sell them after fixing them up, you’ll have to do some significant improvements that you can document (receipts, POs, etc.), because when a bank sees the title work on a property, and sees that it was just bought a few months ago at, say $40k, and you’re selling it for $80k, they’ll want to see that you did significant repairs to the property to justify the jump in value. You’ll need to have a good amount of cash between buying and selling the home to pay the contractors, and you’ll need to find honest contractors. Best way to do that is to get referrals from other property management groups in the area.
References :
Buy Low – Sell High!!!
References :
Celina Jones, Real Estate Consultant
http://www.placidhomes.com