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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 Purchase Agreement Specific links
Real Estate Purchase Agreement News
Harrison Street Real Estate Capital and The Engel Burman Group Ink Agreement to Buy Back The Bristal Assisted Living ...
GARDEN CITY, N.Y., May 24, 2012 /PRNewswire/ -- Harrison Street Real Estate Capital, LLC ("Harrison Street"), a Chicago based real estate private equity firm, and The Engel Burman Group have ...
Read more...Pure Industrial Real Estate Trust Announces Agreement to Acquire Two Fully Leased Industrial Properties for $19.5 ...
Pure Industrial Real Estate Trust Announces Agreement to Acquire Two Fully Leased Industrial Properties for $19.5 Million and Closing of Previously Announced $7.28 Million Transaction
Read more...Pure Industrial Real Estate Trust Announces Agreement To Acquire Fully Leased Industrial Property For $8.1 Million
VANCOUVER, May 17, 2012 /PRNewswire/ - Pure Industrial Real Estate Trust ("PIRET" or the "REIT") (TSXV: AAR.UN) today announced it has entered into an agreement to acquire a fully leased ...
Read more...Allied Properties Real Estate Investment Trust Announces Acquisition of Class I Office Complex in Kitchener
TORONTO, ONTARIO-- - Allied Properties REIT announced today that it has entered into an agreement to purchase the following property for $61.75 million: Address Total Office Retail Parking GLA GLA GLA Spaces ---------------------------------------------------------------------------- Lang Tannery ...
Read more...Canadian Real Estate Investment Trust to Acquire Class A Office Complex in Calgary, Alberta
TORONTO, ONTARIO-- - Canadian Real Estate Investment Trust announced that it has entered into an agreement to acquire a 50% managing interest in Calgary Place, an office complex located in Calgary, Alberta .The purchase price for the Property is $156.0 million . Typical due diligence conditions have ...
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