Great!! You made the decision to invest in real estate. Now you are probably wondering where to begin. Before you can begin, let’s take a look at the options available for those seeking to invest in residential homes. If you wish to make money on a monthly basis, then the cash-flow approach to investing is a good place to begin. The goal is to have the rent exceed the monthly expenses. Find an agent to help locate properties that cash flow well.
No doubt about it— you want to buy low, but also keep a sharp eye and an open mind when looking at investment properties that have a mother-in-law suite. Don’t' rule out buying near universities— you would then be able to rent by the room. The Buy and Hold strategy is exactly that. You buy property and hold on to it. This requires patience. However, it is the easiest investment strategy. Be on the lookout for an up and coming neighborhood or even a nice well established community. Once you have secured a property you will need to hire a management company to look after your investment. In 20 years you sell and make 100's of times more money than you put in. The ROI is very high.
If done properly, the Flip or Rehab form of investing can be very rewarding. In this form of investing, you will need to make your money when you buy. You must stick to your budget and timeline. Flip or rehab investments require organization and money. When it is time to sell don't be greedy— sell for a fair market price and move on to the next. Now it is time to act upon our chosen investment style. There are countless ways to buy residential Real Estate — keep in mind there are still a number of assumable out there. If you are lucky and put forth some effort, you may find a seller willing to do a vendor buy back. In its simplest form, the seller loans you the down payment— this can be done for as little as 5% down.
The bottom lines is, if you structure the deal right and make the seller happy, usually they will do whatever possible to get the contract started. Making the choice to invest in real estate is a fantastic way to make money. It is interesting to note that most people who have accumulated millions of dollars have done so by investing in real estate. In the real estate investment game, there truly are options for everyone. Once you factor leverage into the equation, investing in property is a very wise choice indeed.
via:http://edmontonrealestateinfo.com/investor/
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