Real estate investments can be lucrative, especially if you are purchasing properties with significant upside. Measuring how much you make can be challenging, though, since investing in property has a number of different models for valuing your return. Ultimately, there are three key metrics that will help you understand quick-flip investments, long-term cashflow plays, and combined investments that span both increasing value and collecting longer-term cashflow.
Real Estate has created more millionaires and billionaires than any other investment vehicle. While the world of real estate investing is full of successful people from Donald Trump to the even more successful Donald Bren, this dog-eat-dog world is also littered with millions of also-rans and bankrupt players. The successful real estate investor must understand the qualities that separate the successes from the failures. Here are some of the more important traits:
Finding dependable funding sources for real estate investment deals has become significantly more difficult over the past decade. Not only does the entire RE industry have somewhat of a “black eye” but traditional lending institutions are more constrained by government laws and regulations than ever before. Real estate developers in need of investment capital should look to non-traditional sources such as hard money lenders as there are significant advantages to these private, knowledgeable and experienced lenders.
In general, real estate investing offers two interesting alternatives, active and passive investing. The active investor purchases, rehabilitates and then rents or resells a property. This process can be extremely rewarding financially but carries a significant amount of risk as the buyer can lose his entire investment if the property does not perform up to expectations.
Whether you are a seasoned trust deed investor or you are considering your first trust deed investment, there are critical considerations to make in ascertaining that the investment is right for you. Its very important to familiarize yourself with trust deed investing before you make the final decision. Make sure to review available notes, and select properties and locations you are comfortable with.
Buying a piece of investment property is a major decision. When you buy the right property the right way, it can generate very healthy returns. On the other hand, recent history gives us ample examples of what happens when you buy the wrong property the wrong way. Here are five considerations to keep in mind that should help make your investment both profitable and successful:
