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Real Estate Investing Strategies
from:Real estate investing is a great way to make some extra money and diversify your portfolio. Before you lunge in and purchase your first investment property it is a good idea to have some real estate investing strategies in mind. Savvy real estate investors look for properties that are below market value. A good way to find these is to look at buildings that are foreclosures. Some buildings that have been foreclosed on will be ready to rent or resell immediately at a profit. Other buildings may need renovations or updates in order to sell them. Working with a trusted real estate agent who specializes in foreclosures, knowing what types of real estate you are interested in investing in ahead of time and making the best deal you can is the best way to come out ahead.
Common real estate investment strategies
Before you begin investing in real estate learn the various investment strategies. The most common strategy that real estate investors use is the one that can lead to the most problems. That real estate investing strategy consists of buying properties which the investor believes will soon increase in value due to market-wide appreciation. Although this strategy can be used successfully, it is based on pure speculation and can fail. There are three investment strategies that can be used and are based on facts instead of speculation. The first is known as the bargain purchase. Investors who use the bargain purchase method when choosing a property pay twenty percent less than market value for the property. This allows them to make up to a twenty percent profit using this real estate investing strategy and is a great strategy to use when purchasing foreclosures. The second strategy is known as the increase value strategy. Using this strategy the building would be purchased at current market value. There must be some improvements that could be done within a six month time period that would increase the value of the building by twenty percent for this strategy to be successful. Finally, many real estate investors use the double digit cap rate. The double digit cap rate strategy is used for buildings that have a capitalization rate of ten percent or more. A capitalization rate is the net operating income from the property which is then divided by the purchase price. These are harder to find unless the market is depressed or you are looking into small market niches. Whatever type of real estate investing strategy you choose it is wise to have a real estate agent on your side who can help you make the right decisions and tell you of any new listings, including foreclosures that you may be interested in.
Real Estate Market Specific links
Real Estate Market News
Housing Market Improves as Prices Rise in April - LoanSafe
Housing Market Improves as Prices Rise in April LoanSafe April's results are more evidence for the growing number of housing market observers who say Palm Beach County has hit bottom after a six-year bust. Palm Beach County has about 7800 homes for sale, nearly 40 percent fewer than last April. |
Homework a Must for Investors To Make the Grade in Real Estate Market - MarketWatch (press release)
Homework a Must for Investors To Make the Grade in Real Estate Market MarketWatch (press release) "First of all, a real estate investor needs to know his or her market," said Hicks, whose company has purchased over 50000 homes since 1996 and is the largest home buyer in America. "First-time real estate investors should know the answers to questions ... |
How the real estate market is changing: walkability counts a lot more - OregonLive.com
 OregonLive.com | How the real estate market is changing: walkability counts a lot more OregonLive.com As we enter a three-day weekend when I'll undoubtedly be doing plenty of walking and biking around my close-in Portland neighborhood, this column in The New York Times about changing real estate values caught my eye. Christopher Leinberger, a business ... |
Commercial real estate services expanding in US - Reuters
Commercial real estate services expanding in US Reuters By Ilaina Jonas | NEW YORK (Reuters) - New commercial real estate brokerages are launching in the United States, in what may be a sign that the market's recovery is durable. Australia's UGL Ltd (UGL.AX), a huge property manager, plans to expand in the ... Newmark Knight Frank Devencore Issues Spring/Summer 2012 Toronto Industrial ... |
Seller's market returns as homes for sale drop in some areas - Detroit Free Press
 UPI.com | Seller's market returns as homes for sale drop in some areas Detroit Free Press AP PHOTO By Julie Schmit Multiple offers and bidding wars have returned to some housing markets amid shrinking supplies of homes for sale. The dwindling inventories — driven by a mix of reluctant sellers, fewer foreclosure resales and rising demand ... US housing market senses a turnaround Redfin slapped with patent suit over new Home Price Tool |