Real Estate

How To Invest $5000 For Superior Returns

By Martin Thomson It is a challenge to invest $5000 because it is really not enough money to buy wealth producing assets like real estate. However many people overlook land as an investment vehicle. Lets explore now, how you would invest $5000 in land and make some really good returns. First of...
Posted at 12/30/2007 13:12; Read 351 times; read more >>

Is Flipping Real Estate Right For You?

By Jason Loucks In the past, individuals got into real estate investing to make money by serving as landlords. They would purchase a few homes, normally in their city or area, and would then rent them out. They made money each month from the rent as their home gained...
Posted at 12/27/2007 03:12; Read 191 times; read more >>

Why Invest in Commercial Properties Instead of Single Family Homes?

By Anthony Seruga While there are many people who seem to believe that investing in residential real estate and single-family homes is the way to go, investing in commercial properties is much better. Instead of focusing your real estate investing on residential properties focusing on commercial properties is a better...
Posted at 12/12/2007 06:12; Read 288 times; read more >>

Tax Deed Investing - How To Double Your Money Quickly And Easily By Investing In Tax Deeds

You would be amazed at the amount of inaccurate information available about tax deed investing on the internet today. Be sure to pick your information source wisely.

I have compiled an amazing tax deed and lien investing manual that reveals hidden tactics and strategies that can only be gained from years of real life investing experience. It is exactly what you need to succeed. Start today.
Posted at 07/11/2007 02:07; Read 642 times; read more >>

Admoneo - Croatian Home Brand

The world is in process of "discovering" Croatia as a new potential. It has clean beautiful see and about thousand islands. The country is in process of joining the European Union. Lots of investors from the world are interested in buying properties because they are still low-priced but that situation won't last...
Posted at 05/13/2007 02:05; Read 762 times; read more >>

How I turned GBP 500 in to GBP 10m with property investment

by Ajay Ahuja I started investing in property in 1996 with only £500 and now I own a property portfolio of 150 properties worth over £10m. I can already hear you - "it was easier back then!" Ironically it wasn't. Let me explain a little more. The buy to let mortgage...
Posted at 04/06/2007 02:04; Read 562 times; read more >>

Free Property Investing - 7 Ways To Buy Property In Australia With No (or Very Little) Money Down

By Ian Thomson There’s a myth out there that you cannot buy property in Australia for no money down. The myth is wrong. You can buy property for no money down (or for very little money down). However, as they say, there’s no myth without fire (that’s the right expression isn’t...
Posted at 01/04/2007 08:01; Read 551 times; read more >>

Investing in Kenya: Tourism Industry

By Robert Muhoho Tourism is Kenya's third largest foreign exchange earner. The tourism industry is growing as a result of the liberalization measures, diversification of tourist generating markets and continued Government commitment to providing an enabling environment, coupled with successful tourism promotion and political stability. Enormous opportunities exist for investment in...
Posted at 10/04/2006 09:10; Read 2232 times; read more >>

Real Estate Investing - Avoiding The 'Frequently Made Mistakes

by Brooke Hayles

Real estate investing has been the American dream. However, it's not for the faint-hearted, many have lost money because they made mistakes. It's a risky business so you need to know the 'how to's or you could join the ones who lost money rather than made it.

You know what some real-estate gurus tell you - Real estate investing is easy! It's as simple as finding a low-priced property, getting it painted, plant some greenery, and wait for buyers to fight for it - so they say. They entice you into real estate investing by telling you it's possible without even putting in a dollar.






A common scenario is someone who invests over a couple of thousand dollars for one of these Real estate investing seminars with some hot-shot investing guru. Excited about the prospect of making enough money to retire on, they become convinced that real estate investing is their answer. Only a year or so later, and they've realized that investing isn't a quick fix, and it takes more than a seminar to be successful.

There are many pitfalls that new investors can make which we can only cover a few of - but at least it's a start. Here are three of the main ones.

If you go into real estate investing emotionally, and not as a business venture, you'll definitely lose out. What does this mean? Well, say you find a property that you immediately fall in love with. It's so cute, it's got a pretty garden, it's got character etc. You will be making an emotional buy and not an objective one that should be considering the suitability of price, for tenants, and even resell prospects.

The less knowledge you have about real estate investment, the more risk you'll be taking. Investing blind means buying real estate as if your eyes are shut - such as blinding believing all you're told at real estate seminars or agents. You must do your research; read and read and then read some more on the subject; ask others who have been successful and learn from them. Just a little lack of knowledge could mean that you end up with a bad buy.

Many real estate investors have fallen due to lack of cash flow. This is the key phase for survival in the investing business. Not having cash reserves makes your position very risky and shaky. Sure you can use your credit but credit needs repayment. And that investment property will have hidden costs. The more pressure you're under the easier it is to make silly mistakes. Make sure you allow for sufficient cash flow.

Research is only as good as knowing what to look for. An example; say you were investing using the 'fix and flip' technique which means re-selling quickly for a profit.

Say you buy a property that looks like it fits all the requirements. You spend a little bit of time researching and checking zoning requirements. All seems good and you spend money and time doing it up. Only to find out that you hadn't checked requirements carefully enough and you've created an apartment block with too many apartments for the zoning area. Guess who's going to be out of money? Do your reading for knowledge and your research for reducing risk.

So, you're ready for your property to be tenanted. Don't rush in and accept the first people who apply. It's very gratifying to know that someone wants to live in your newly acquired property, and the cash would definitely come in handy with bank bills to pay. But it is well known by long-term real estate investors that bad tenants cost a lot more than a couple of weeks waiting for the right ones to come along. Screen your tenants - choose carefully. Getting references is a good start.

Summary:

To succeed in real estate investing you need to read for knowledge and research to reduce risk. Then you won't get sucked-in by real estate investment gurus offering you the world for nothing.


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About the author:
Brooke Hayles
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