Making Money In Real Estate Investment

Real estate is one of the best ways to invest your money. Not only does it allow you to use other people’s money to get ahead, but it is also generally less risky than almost any other investment. Real estate is one of the least risky investments you can make because you own the entire investment, so you can control almost all of it.

Most other investments are subject to a host of outside factors that affect the investment. Stocks fall because of such silly things as rumor, gossip, or herd mentality.

Bonds fall the day a new inflation report hits. If Asia blinks, 200 mutual funds lose 20 percent of their value. Real estate, although certainly subject to market conditions, is just not so whimsical. It does not appreciate or depreciate in a day like some other investments do.

With real estate, you have a great opportunity to get ahead. The investments are solid and give very good returns. Many of the richest people in the country, people like Donald Trump, Jerry Buss, and Merv Griffin, all owe their fortunes to real estate.

Banks also own real estate. Think about your bank. How big is it? How many branches does it have? Banks make much of their profit by investing in real estate. Consider the buildings they have their offices in. These trophy properties, the furniture, the huge salaries paid to their executives, and the dividends paid on their stock are almost all made possible by real estate investments.

There are many ways to invest in real estate. You can buy your own home, commercial property, rental homes, or raw land, for example. Of all of these options, buying and selling rental properties stands out for the person who is just beginning to get out of debt, save a little money, and is looking to start investing.

Look around your city. Someone owns all those apartment houses and homes that people rent. Becoming a landlord enables you to invest in a tangible asset, maintain control of that asset, and sell it (usually) for a great profit. The best part is that you don’t need a good credit history and lots of cash to get started.

It is important to understand that while real estate is often used to fuel fortunes, it is not an investment without risk. Markets are cyclical, renters fail to pay their rent, tenants move with no notice, buildings get damaged; many things can go wrong.

The point is, if you are willing to put up with these types of risks, the rewards can potentially be great.