Profit From Real Estate
By Barrett Niehus
Undoubtedly, the safest investment that you can make
is in real estate. The potential return can be immense
and because it is a real asset, your downside is only
the market value of the property. Short term returns
may be negative, but eventually, the price of real estate
always goes up.
In addition to its relative safety as an investment, real
estate provides the investor with much greater leverage
than with other equities. Stocks may only be leveraged
to half of the total investment, while a real estate
investor may finance, up to eighty percent of the investment.
This again creates enormous potential for a return given an
expected level of risk.
Given that real estate has such great potential, why is it
that most investors only contribution to the real estate
industry is the purchase of their own residence? The
answer is simple enough. Most investors do not fully
understand the details of investing in real estate and
therefore are reluctant to commit the funds toward the
investment.
Fortunately, the fears of these investors are easily
eliminated with a little education. Investors may quickly
learn that making a real estate investment is no more
complicated than signing a mortgage, raising rents, and
receiving monthly cash flows.
The steps are simple. First you locate a property that
you believe will provide you with a good return. Next
you can run a simple cash flow analysis to determine what
your monthly cash flow will be. There are commercial
software programs such as IP Ware www.freetrainer.com
and RealtyHound www.realtyhound.com that will assist you
with this analysis. The next step is to allocate funds
for a down payment and find a mortgage lender that will
loan you the balance of the investment at a favorable rate.
It is that simple. After closing on the sale, change the
rents if necessary, make any improvements to the property
that you believe will increase its value and your return,
and finally receive a monthly paycheck from your tenants
that will cover your mortgage, expenses, and provide you
with and additional return.
Investing in real estate is that simple, and has allowed many
people to become financially independent. It has provided
them with the freedom to enjoy their life while building
equity, receiving monthly rent, and having the resources
necessary to enjoy their lives.
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Barrett Niehus is the director of marketing for IP Ware
Wealth Building Software
http://www.freetrainer.com.IP Ware maximizes your investment dollar, and minimizes
the risks associated with investing in real estate.
http://www.freetrainer.com.
