Jason Dodge offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: Three Tips to Help You Succeed With Real Estate Investing Author: Jason Dodge Category: Real Estate, Wealth Building, Business Opportunities Word Count: 701 Keywords: Real estate investing, real estate market, cash flow, property, rent Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
Real estate investing can be quite tricky, especially if you do not know exactly where everything fits. Similar to any other business out there, you first need to learn the basics and then move on to more difficult problems. #1 - Acknowledge and Understand the Basics Do you really know what real estate investing is or do you just know that there are lucrative profits involved? You should know. Real estate investing involves acquiring a real estate property while having the expectations of creating a profit. That profit is then invested again into other real estate properties and the process keeps going. As long as you are making money, you see profits. There are different ways that real estate investors make money. They target a wide range of properties, including single family and multi-family homes, duplexes, vacant lots, apartment complexes, and commercial properties. The properties are either renovated and resold or rented out. This form of investing is popular because it is more adventurous and is likely to produce better results than just tinkering with the stock market. There are however a few downsides to real estate property investing that you must be aware of. First, capital is needed. You need to have money to buy that first property. Second, the real estate market is known to fluctuate; therefore, it can be risky. Your goal is to buy when property prices are low, get a low price and opt for properties that you consider as having potential. #2 - Understand the Return Elements One of the most important rules of seeing success with real estate investing is to not act on emotion. You cannot buy, sell, hold or rent a property based on how you feel. You need to consider nothing more than the profit margin; you must see a return on your investment to make money. Here are some things you must consider: A - Cash Flow - This is determined by taking the amount of money that you get in rent and subtracting the expenses that you pay (such as mortgage and renovation costs). Cash flow is important to consider with rental properties, as you hold on to them; ensure you really do make money in the end. B - Appreciation - This phrase is used to describe the value of a property over a long period of time. For example, a home's appreciation value does increase with good repairs and renovations. Take the amount you paid for the property and estimate the increased appreciation due to those repairs. Once again, ensure you can still make a profit flipping or renting. C - Tax Shelter - Although a professional tax expert should be consulted, there are ways that you can use this legal method to reduce income taxes. #3 - Do Your Homework A - Develop a goal with objectives. You must have a plan in place if you want to be successful. Start with your goals. How much money do you want or need to make? Would you like to flip properties after making upgrades or hold the property and rent? How much cash are you willing to invest? When you have the answers to these questions, it is easier to formulate a plan for success. B - Research your market and research it more. Never buy a property with the intent to flip it without first familiarizing yourself with the average property value rates in the neighborhood. The same with renting; do not assume you will be able to rent your apartments for $2,000 a month when the average rental rate is for $1,000. C - Consider using real estate investing software. This software comes in different formats, but you are able to create your own analysis. This gives you more control over seeing a property's true profitability and cash flow. D - Get a professional real estate agent in your corner. You want someone behind you who knows and understands the local real estate market. They cannot only help you find the best properties for investment, but find and buy them too. So there you have it! You know have a good basis to start from for real estate investing. Basically, you want to think with your mind and not your heart, and use your common sense. Jason Dodge has been investing in real estate since the early 90's. He specializes in getting money for investing and recommend the free training at http://www.InvestSteps.com ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
