How To

Real Estate: How To Invest

What is Real Estate?

Real estate is simply land, buildings, and anything else of value on the land. For example, if you own a house, the land it’s on would be considered real estate. You would also own any outbuildings or structures that were part of the deal when you bought your house. They are all examples of real estate because they are secured to the ground (or at least mostly secured to the ground). If you’re like me and like investing in real estate (and even if you don’t), understanding exactly what makes up “real estate” will be crucial later on. It will help us pinpoint exactly what we need to look for when buying real estate. I’m not sure how many people actually know this answer though…in fact I’m pretty sure most people think houses make up all of real estate! That’s obviously not true though!

Is Real Estate A Good Investment?

I’ve seen an endless parade of folks stating that “real-estate IS a good investment” or that “This ISN’T a good investment”. Both sides have valid points but they aren’t always accurate for everyone. There was a large drop in property values in 2007 and 2008, and many people were left with homes worth far less than they originally paid for. Additionally, if you buy a home in a bad area or neighborhood then it’s likely that the home will depreciate even further over time. However, real estate is still often considered to be one of the best investments around because it’s such an important part of our economy. The fact is that investing in real estate can be very profitable for you if done correctly. You just need to know what you’re doing!

How To Invest In Real Estate Effectively

Before we get into any specifics about how to invest in real estate I want to emphasize that investing in real estate can be very risky (especially when you’re new). If you aren’t careful then it might take years before your investment starts making money! Don’t get me wrong though; I’ve seen some people pull off some jaw-dropping returns on their investments…on the other hand I’ve also seen many others lose thousands (or more) on their investment…so don’t go “all-in” when working with real-estate unless you know exactly what you’re doing.

Getting Started

I highly recommend that you start by getting your real estate license. Most states only require a few hours of training to get your license, and once you have it then you can legally invest in real estate. Many agents are able to help out with this process for you including real-estate agents who are familiar with the local area, or even members of your family if they have experience! It’s perfectly legal for anyone to invest in real-estate whether or not they have a license so don’t be afraid of doing it without one…but having one will make things much easier!

Profit Margins On Real Estate Investments

The profit margins on all investments vary depending on many factors (e.g.; location, how much work is involved, etc.). One thing that I’ve noticed about investing in properties is that profit margins are typically very high compared to other investments (stocks/bonds/etc.). If I buy a property cheap enough then it might only take me three to six months before I start making money on my investment! Compared to other types of investments this is incredibly fast. Of course there’s also the risk aspect…if the market crashes then your investment might turn out profitable but it could also turn out disastrously bad…but let me tell you from personal experience.

If you are interested in real estate investing then I highly recommend checking out my Ultimate Guide To Investing In Real Estate. It has a lot of the information that I’ve just given you but it also has a lot more. It’s much more detailed, and it goes into much greater depth. You’ll love it!