Real Estate Term:Investing in Real Estate
Investing in Real Estate
When considering investment of capital assets for long-term or short-term growth, there are many options available today and technology has created a medium in which has made the process of investing extremely easier. For example the internet has given birth to companies such as E-trade (www.Etrade.com) and Charles Swab (www.charlesswab.com), which conduct most of their business online. Investments that have been influenced by technology are the stock market, the foreign exchange markets and recently the historic real estate market.
While many investors today are active investors in the stock market the recent technology industry decline (the .com bust) forced many investors to liquidate their shares in technology companies and seek a more stable investment. Other investors, particularly investors in commodity markets such as oil and gold witnessed the decline of the US Dollar vs. the European Euro and using speculative strategies invested in the Euro, with extremely high leverage and majority experienced heavy loss in such investments an example of such companies is Forex (http://www.forex.com) and Money Corp (http://www.moneycorp.com).
While investing in the stock market provides the benefit of both short term and long term gains, the level of statistical uncertainty has forced many to expand their investment portfolio into other investments such as the foreign exchange market, commodities and most recently real estate, such as REITs, time shares and commercial real estate investments.
Real estate, as an investment has been traditionally a long-term investment. However, strategies exist for gaining short-term benefit while maintaining long-term growth. The benefit of investing in real estate is the use of leverage (borrowing funds to secure large transactions) for maximizing return and the security of such investment. The downside is that if adequate research is not done before committing to a real estate deal the investor may be in a financial jeopardy. And example of companies that provide funds for real estate leverage is Invesloan (http://www.invesloan.com) and Investment Loan Source http://www.investmentloansource.com.
There are three simple steps that can be taken for maximizing gains in real estate today while minimizing risk.
1. Find best real estate investments with patience and research 2. Secure funds for leveraging your investment (i.e. with a 10% deposit of investment you can secure another 90% of financing) 3. Maintain, monitor and grow your real estate portfolio
Investing right in real estate will create immediate returns (rental income or short sales) while providing long-term growth by utilizing the principle of leverage. An example of companies that you can find property are the Marshall Reddick Real Estate Network http://www.marshallreddickseminars.com/ and by contacting active real estate agents such as Remax http://www.remax.com and Keller Williams http://www.kw.com/. After finding the properties you get financed and hire a property management company for managing you investment for long-term growth.
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