Simple Real Estate Investments For Beginning Investors


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Real estate has become an investment vehicle over the last 50 years and many investors have made fortunes in the business. Real estate investing is far from easy so don’t let those late night TV real estate gurus tell you otherwise. Take time to understand the industry before diving into it and keep things as simple as possible when starting out, in order to gain traction. Some simple real estate investments that beginning investors pursue are rental properties, rehab properties and investing in REITs.

Beginning investors should consider rental properties because they are a time-tested way to invest in real estate. The reason for this is simple because rental properties allow investors to generate monthly cash flow that is used to pay for their leveraged capital. After finding a property that has been determined to be a good rental property based on ROI, most of the money to finance the property is leveraged through a lending institute. The monthly rental payments cover the mortgage, the taxes, maintenance and leave a rental property owner with a little bit of profit each month.As this continues throughout the course of the mortgage, the rental is eventually paid off and a rental property owner now capitalizes on the property.

Of course, there are some drawbacks to owning rental property. Bad tenants who don’t pay their rent put a dent in the profitability of a property and can lead to negative cash flow. In order to avoid bad tenants, beginning investors should purchase a rental property in a decent part of town and put potential tenants through a screening process.

Beginning real estate investors who pursue rehab properties can earn a great deal by finding properties that are in need of some TLC, fixing them up and getting them back on the market. 2013 is turning out to be a hot market for rehab properties. Take some time to research the best locations and properties before picking the best one.

REITs allow beginning real estate investors to capitalize on what real estate has to offer, while remaining physically detached from the industry itself. REITs allow an investor to invest their capital with a company that handles rental property. A beginning investor receives a dividend based on their investment and don’t have to put in any actual work.

Beginning investors should focus on simple strategies when starting in real estate, like rental property, rehab properties and REITs. These three options can allow an investor to work up the ranks and capitalize on their successes.

Asking questions with these tips in mind will help save real estate investors thousands. For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com. We are the nation’s number one home buying franchise with over 15 years of experience. Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business. Come see us for more information.

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