Real Estate is one of oldest forms of investing known to man.
Real Estate investing is easy and fortunes are made in a simple manner. For example, and investor decides that a desert area will eventually become an industrial development. He purchases a number of acres at a very low price. If his guess turns out to be correct, ten years later he sells land hundred times more than what he paid for it.This can happen in any part of country and is not an exceptional case.
As population keeps growing in U.S., land prices continue to raise and it means that Real Estate will continue to offer one of best investment opportunities in country.
Compared to most forms of investment, Real Estate offers greater profit potential. Of course, not every piece of land will turn out to be a winner, and despite great potential rewards in some cases risks are involved, so necessity of careful study before invest.
One of problem of Real Estate is his lack of liquidity. Liquid assists are those easily converted into cash like stocks or bons. Most Real Estate investments take years before you can make some money, so it is not wise to tie up all your assets in this type of investment. Your financial situation will determine how much you can wisely invest in properties.
There is a difference between a land speculator and an investor. A speculator buys land with intention to make a quick sale and fast profits and will not hold land for a long period of time. An investor, on other hand, looks for a long time gain, and usually buys only what he can afford to keep for an indefinite period of time.
If you are new at this field, it is wise to refrain from any a speculation until you become more informed, and you will have to devote considerable time to study and research. It is wise also to consult specialists before you act.
Without realizing it, you already made a very successful investment in Real Estate if you bought your own home.
Before you look for areas to invest, consider condition of your own house. If you have any plan for selling it, good landscaping has been known to considerably increase value of a home.
Large profits can be attained by purchasing run-down homes and restoring them for eventual selling, but some factors have to be considered:
* You must know something about architecture and remodeling and get and idea of how much it will cost to get house back into shape. Consider what you will be able to do yourself and what it will cost you if you have to have it done.
* The location of house is most important factor to consider. Study neighborhood, shopping, and transportation facilities.
It can also be profitable to lease land for commercial use. Land which borders highway is extremely valuable for purpose such as warehouse, gas station, etc.
Land development companies frequently run advertisements offering country retreats. Be wary of these offers as they themselves make a large profit at time they sell you land, so it is much more profitable for you to buy your own.
When you buy property, buy at a price that involves a minimum financial risk. Invest only a modest amount of your own capital, when you sell, determine if a cash or installment sale is best, based on your over-all income tax status. Learn by looking back on mistakes made in past and by reviewing opportunities you have missed.