Real estate investing involves
attainment, holding, and sale of rights in real property with the anticipation
of using cash inflows for possible future cash outflows and thus generating a
favorable rate of return on that investment.
Here
are simple guidelines that must be followed if you plan to succeed at real
estate investing. It's not everything, of course, but at the very least, you
must be ready to commit to these things if you want to become a successful real
estate investor.
More beneficial then stock
investments real estate investments offer the advantage to leverage a real
estate property heavily. You can use other people's money to magnify your rate
of return and control a much larger investment than would be likely otherwise.
Moreover, with rental property, you can nearly use other people's cash to pay
off your loan.
The amount of cash that comes in
from rents and other profits less what goes out for operating expenses and debt
service determines a property's cash flow. Here are risks associated with
investing in real estate, and real estate investment property can be
management-intensive. However, real estate investing is a basis of wealth, and
that should be enough motivation for us to want to get better at it.
More Real Estate News: Jeff Adams Real Estate Guidelines
No comments:
Post a Comment