Realty consists of all types of real estate including homes, apartments, condos, commercial buildings, retail space and raw land. Real estate investors can choose to focus on one particular niche or develop a diverse portfolio consisting of several types of investment properties.
Realty is a complex game. Successful investors need to become educated about all facets of this multi-dimension business. While real estate investors do not need to have a Masters Degree in all areas, they would be wise to obtain a basic education and form a team of expert consultants.
Some investors are satisfied by investing in a few select properties, while others elect to build a real estate empire. Regardless of the number of properties, investors need to carefully monitor cash flow and adequately prepare for unexpected expenses.
Two of the most popular types of realty investing include foreclosure and bank owned homes. Oftentimes referred to as distressed properties, these houses usually require upgrades and repairs. Although distressed real estate can be purchased below market value, investors must determine the true costs associated with rehabbing the homes.
Rehabbing can be as simple as adding a new coat of paint to interior or exterior walls or as complex as total renovation. It is not uncommon for newbie investors to see dollar signs when purchasing properties sold through auction. Careful consideration should be given to foreclosure homes prior to making a bid.
Bank owned homes are nothing more than foreclosure homes that have been returned to the lender. When no acceptable bids on placed at auction, the property is returned to the bank. The lender must sell the realty in order to remove a non-performing loan from their books.
Banks want to obtain as much money as possible and recoup their losses. In order to purchase REO properties investors must negotiate with the bank's loss mitigation department. It generally takes strong intestinal fortitude to deal with lenders.
Investors should be prepared to engage in multiple counter-offers before landing the deal. They also need to be prepared to walk away if they cannot obtain the realty for a reasonable price.
Investors starting out in realty can obtain most of the information and resources they need to build a successful business via the Internet. One excellent source for both novice and seasoned investors is CREOnline.com.
Another recommended source is Trump University, founded by Donald Trump. Trump University offers a variety of paid real estate investing courses, financial advice, and access to distressed properties selling at 50-percent below market value.
Realty is a fascinating world that offers numerous opportunities. Take time to understand the intricacies of this arena. Doing so can help amass fortunes in real estate and provide the financial freedom you desire.
We invite you to learn more by browsing our realty investing articles. Our comprehensive library includes information and resources on distressed properties, probate real estate, house flipping, wholesaling and more!
Published on May 10, 2009 at 02:04 AM
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