Getting Started in Real State Investment
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It has been said that one way of making money quickly is through Real Estate Investment. Some part of this is true. With a proper financial investment and with a reasonable amount of honesty, a property can be bought and sold for a killer profit and the future would still look bright.
To be successful in the real estate industry, the biggest problem to avoid is the steep learning curve. If you havent done your homework, you can lose a large amount of money faster than you can say stock market crash. Thats how complicated the business is. But like any market, real estate values may take turns and when they do its usually a sharp, steep drop.
Once you carefully thought of this through, write it down. Make a one to five year business plan in measurable details as possible, and then analyze it after six months and do it again after two years.
The plan should be an estimate of how much capital youve got to invest, which will alter depending on whether or not your plan to use your primary as your first investment. For Example, if you have less than $10,000 to start with you are looking at either using your own home buying a fixer-upper as your first investment.
If you have good credit it is true that you can get into a secondary property with no money down and just a couple of thousands in closing cost. But the market would then have to go up quickly and would force you to sell it right away.
Thats risky and has serious tax and legal consequences. The substitute would be to take on high monthly payments and additional payments on repairs. Again, risky and expensive. The risk of you losing more than your initial investment is very high, because even though you only invest in a small amount, you are still legally attach to the entire package.
Reckless move for starters.
The other part of plan they should state how much risk you are willing to take. Be honest and consider your personality. Some investors favor capital preservation, while others stick to the maximum return in the shortest amount of time possible. People differ in their tolerance for risk, make sure you know yours.
If you still want to be a part of this then, good! You can make a great additional income, or maybe a full time living, in what remains one of the soundest investments around. And aside from the possible money you can make, it is a fun adventure!
