MAKE BIG MONEY IN REAL ESTATE

 

Real Estate is one of the 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 several acres at a very low price. If his guess turns out to be

correct, ten years later he sells the land a hundred times more

than what he paid for it. This can happen in any part of the

country and is not an exceptional case.

As the population keeps growing in the U.S., land prices continue

to raise and it means that Real Estate will continue to offer one

of the best investment opportunities in the 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 the great potential rewards in

some cases risks are involved, so the necessity of careful study

before invest.

One of the problems of Real Estate is its lack of liquidity.

Liquid assists are those easily converted into cash like stocks

or bonds. 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 the intention to make a quick sale

and fast profits and will not hold land for a long period of

time. An investor, on the 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 in this field, it is wise to refrain from any 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 the condition of

your own house. If you have any plan for selling it, good

landscaping has been known to considerably increase the 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 an idea of how much it will cost to get the 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 the house is the most important factor to

consider. Study the 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 the time they sell you the 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 the

best, based on your over-all income tax status. Learn by looking

back on the mistakes made in the past and by reviewing the

opportunities you have missed.

Prepare a list of all properties available in your area and think

up the best future use of the properties. Learn to purchase land

before there is a demand. To buy land well in advance is the only

economical way at today's prices. Then hold the property until

you can resale it for large profits. Don't sell all your desirable

properties and keep just lemons.

If you are willing to leave the cities, you should not have any

trouble finding inexpensive land for sale. If you discover a

tract of land appealing to you but not listed for sale, contact

the Country Register's Office and he will tell you who is the

owner. Get in touch with him and he could be willing to sell.

As a rule purchasing tracts of land within thirty miles from a

growing city is often a sound investment. Deal only with

qualified realtors. Be careful of individuals who offer quick

profits.

Before taking any action, study what has been written about the

subject. Know why you should and should not buy. Stay

conventional and don't buy white elephants. Look for hidden

defects and make the property attractive before offering it for

resale. Study local conditions and be sure it is practical.

Constantly look for bargains and quality properties with

exceptional features that will make the sale easier. Follow up on

For Sale signs, make inquiries.

When discouraging elements occur, minimize your losses by

whatever means available. Don't throw away money on repairs for

poorly located property or in an area of surplus rental units.

Before you attempt to sell, find out how the prospect can use the

property profitably. Ask yourself if you would purchase it if you

were in the prospect's shoes. Ask yourself if the future use will

fit any of the many types of specific businesses. Can a hospital,

a bank, an apartment complex, condominium, or a professional

building be located on the property.

Learn to analyze the pros and cons of a real estate problem.

Break it down into its various elements. Know if the answers you

come up with are satisfactory and practical. Try different

approaches to the problem.

You are necessarily looking for the "top" or "bottom" of the

market, or the current economic situation. You are looking for a

variety of properties which have a higher value dependent on the

use that can be established for them.

There are always opportunities in Real Estate during good times

and bad, but it is up to you to pick and choose only those very

best deals, especially during times when it appears that Real

Estate values and demand have reached their peak or in times when

it is practically impossible for almost anyone to get bank loans

due to the tight money market or impossible interest rates.