Real Estate Investment Tips - How to Invest in Real Estate

Real estate investment tips can come in handy, depending on the usability of the information, the experience level of the person offering the tips and of course, if they are well established pieces of information that are not mere theories, but have proven useful out in the field. Of course, many tips are of the type which fall under none of these criteria, and these are the real estate investment tips which are a dime a dozen, offered mostly by those who just hope they sound knowledgeable and important when they give out these "nuggets" of advice.

Good, sound investment tips can be hard to come by... not so much because they are scarce, but it just seems so in comparison to how much worthless advice there is to be had. Of course, it is most usually often the case that the worthless advice is quite plainly recognizable. The best investment tips are those that aren't tips on one time investments, but rather tips on how to make good investments, and what techniques and strategies to use to make good investments, every time you invest. These would be real estate tips of another caliber.

There are techniques to use in order to make investments with a minuscule amount of capital, without using loans, credit or banks in even the most remote of ways. Great information can be found online concerning all aspects of real estate, the problem is theres also a lot of scams and useless information. Before parting with money when buying real estate investment courses make sure theres a solid money back guarantee and that the course is sold using a secure vendor.

'The Real Estate Underground' Is a step-by-step blueprint to success when investing in real estate even if you have no money and a poor credit rating. To check out a review head over to The Real Estate Underground Review by Clicking Here

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Real Estate Investing - 5 Reasons Why You Should Add Real Estate to Your Investment Portfolio

It may come as no surprise to you that real estate has created more millionaires than just about anything else out there. In fact, there is a government statistic that backs this up. According to the Department of Health and Human Services, only 1% of the population retires wealthy. That's anyone with a net worth of $5 Million or more. What's interesting to know is that the majority of this wealthy 1% club; about three quarters, did it through investing in real estate and business ownership.

You can choose to follow public option and listen to the media, or you can be smart and do what the wealthy are doing. They're investing in real estate, and here's why:

1. Income

How would you like to go on vacation for a month and still get paid? That's what real estate can do for you. When you own a portfolio of properties, you can receive passive income, or "mailbox money." This is the positive cash flow you get when your tenants pay rent. Build a big enough portfolio and your passive monthly income could swell into the thousands. I know one investor who purchases apartment buildings and his monthly passive income is over $100,000! The other type of income is active income. This is money you can make from various short term strategies, such as wholesaling, rehabbing, short sales, etc. Quick, lump sums of cash. Yes please!

2. Tax Deductions

Did you know that you can virtually eliminate your tax liability by investing in real estate? You see, as a real estate investor and business owner, you have over 400 tax deductions available to you. For example, the IRS generally will allow you to depreciate the value of the structure on a rental property over a period of 27 & 1/2 years. If you are a W2 employee, it would be like getting a pay raise. When I was working for a boss, I set my taxes up about even. So I didn't owe anything and didn't get any money back. Then one year I purchased a rental property, and when I filed my taxes the following year, I got a refund of over $10,000! Nothing had changed other than the fact that I bought the property.

3. Appreciation

Ask your parents what they paid for their first house. Of if you're a little more "seasoned" in age, think back to what you paid for your first or second home. Now ask yourself what that house is worth today. I bet it's hundreds of thousands more. Don't you wish you had bought 10 or 20 of them back then? What would your net worth be today? Even when the market softens and goes through an adjustment, it typically swings right back. According to the U.S. Census Bureau, Median Home Prices went down only twice in the 43 years between 1963 to 2006. Now if you were to look at 2007-2008, that may be the third time prices went down. But over time, real estate trends up. The population continues to grow and there will always be a need for housing.

4. Equity

It's possible to lose equity, no question, but when purchasing real estate, you should always purchase the property below market value. This creates instant equity in the property. What better way to increase your net worth? I have a student who purchased six properties over a twelve month period. Their net worth increased to over $250,000 as a result of this. How long would it take you to achieve this without investing in real estate? Probably never.

5. Leverage

This one is huge. Let's say you got a hot stock tip, and you went to your bank and asked them to lend you $100,000 so you could buy the stock. What would they say? Obviously they would laugh at you and think you're crazy. But let's say you wanted to purchase an investment property, do you think you could get a loan on that property if you have good credit? Absolutely. This is called leverage, or using O.P.M (other people's money.) When you do the math, even if you receive a modest 6% appreciation on a property over time, you would still end up with a triple digit return because you are receiving that appreciation on the entire value of the property, not just your small down payment. The wealthy understand this, and it's one of the reasons why they continue to get more wealthy every year. Because the poor and middle class invest in CD's, Mutual Funds, etc. while the wealthy invest in real estate.

These are my top 5 reasons why you should add real estate to your investment portfolio. Are there risks? Of course. Any investment involves risk, but there are things you can do to reduce your risk. The longer you wait, the longer you delay your success. If you want to maximize your chances of getting into that wealthy 1% club, retire early and live the life you have always dreamed of, then it's time to get in the game! If others can do it, why not you?

Paul Zelig is an independent business owner and real estate investor. Learn about a solution to overcome the common obstacles that prevent most people from investing in real estate and how to minimize your risks. Visit http://www.TeamNewRich.com to find out more and to get your FREE Roadmap To Retirement calculator.

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Real Estate Investing Club - Learn How to Finance Investment Property

After thirteen years of real estate investing, I know that knowing how to finance investment property is a crucial part of any investor's success. Real estate investing clubs are a great way to meet investors who will share their experiences with you and possibly do deals with you. Getting a mortgage from a bank is not the only way to get started buying investment property, nor is it the best. Building relationships with other investors is a crucial part of success.

When I got started I was in my early twenties I was hard headed and persistent. I wish I had access to a real estate investing club, but I didn't. Some of my earliest investments were properties I bought from seasoned investors who were willing to offer me owner financing with terms where the properties supported themselves. In many cases I did need a down payment, which a bank would require and I didn't have. These investments were products of relationships I sought out with people who were willing to sell me property. I even did multiple deals with some of these investors.

The best way to learn how to finance investment property under terms that you can afford is to meet other property owners who are willing to consider alternatives to conventional financing. There are so many ways to do this depending on the situation. The only things that are required are a buyer and a seller who are open to making a deal. Reading books, speaking with real estate attorneys and networking with a real estate investor's club are important steps to take to learn how to finance all kinds of investment property.

For Insider Real Estate Tips and Strategies, Visit The Gorilla Real Estate Investing Club.

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The Number One Biggest Mistake is Not Having a Clear Property Investment Strategy

Whenever I get asked by anyone how to invest in property, I respond with a series of questions:

• What are your financial aims? In other words what are you after? Are you seeking an income, capital or both?

There is a big difference between wanting to retire in 2 years so you can live off your investment income and wanting to help your children with tuition expenses in 12 years.

• Will you need to borrow money and how much risk are you willing to take?

• Will you consider investing overseas, and if so, where will you invest - Europe, the Far East or the Middle East.

• What level of risk are you willing to take?

• What happens if you need your money back quickly?

Remember, liquidity is a major problem in property investment. If you invest in the stocks and share market, you can pick up the phone and sell in minutes. That's liquity. Just try doing that with property and you'll see that it's a completely different story.

• What about your tax liability and what would happen if it all went wrong?

• Do you want to invest in commercial or residential? Do you even know the difference?

These are the type of questions you should be asking yourself before you dive in and invest in property. It's very helpful to write down your reasons for wanting to invest in property. You can always revise your list if you change your mind about your investment motives. But I guarantee you won't be sorry for spending a little time up front making the list. On the other hand, if you're unable to come up with any motivating factors for investing, you're also setting yourself up for failure.

This may seem like a lot of work, but it's a crucial part of the process if you want to succeed. Remember: buying property BEGINS with a well thought out plan for your exit strategy!

You should also be aware of the intense marketing hype of many online estate agent sites; they often prey on gullible, uninformed individuals. Be careful not to fall for the hype regarding the off plan deals marketed in nearly every country. Media such as glossy overseas magazines that advertise second homes for sale as investments are often very misleading.

Another word of caution - don't be fooled or conned by the promises of "get rich quick" property schemes. Property is a long-term investment. It's easy to lose sight of this as you hear any number of different, new and possibly more exciting property investment strategies that appear to be making money NOW. Years ago you could purchase reasonably-priced property, rent it out and make good money in a relatively short period of time. However, times have changed and this is no longer the case.

Not all real estate agents will be upfront about this fact. Like many others, you may mistakenly assume that your real estate agent is determined to help you obtain the best possible return for your money. Unfortunately, this is often not the case. The main goal of real estate agents is to sell property - period. Do you think it is in their best interest to convince you to make long-term property investments? Definitely not!

Media resources can also hamper your property investment opportunities by writing bad or good reports about property investments that simply aren't true. Property-related journalists are being paid to write, not to conduct research about the real estate market or lucrative investment opportunities.

Advertising is big business and journalists may be paid to write a scathing or glowing report about various overseas or local investments that is completely false. Hence, it's best to ignore the majority of what you read in the magazines and conduct some solid market research on your own. After all, it's your money so you want to invest it wisely!

Fortunately, there are some reliable resources available to help you learn about current trends in the property market. Start by consulting one of the following websites before you invest in any of your hard-earned cash:

Collierscre - One of the leading worldwide real estate consultancies

Knight Frank - Residential and commerical property professionals

The Royal Institution of Chartered Surveyors - Leading source of information relating to construction, the environment, property and land

Estates Gazette - Magazine offering detailed information about commercial property trends

Also be sure to talk to local real estate agents as well as some reliable rental management companies. They can discuss some of the more successful local invesment property strategies. Don't forget about members of your local business community and shop owners in your community. They can prove to be invaluable sources of information when it comes to local property invesmtent.

If you establish clear investment targets, you can focus only on the relevant types of property. I don't recommend choosing more than two property types if you're an inexperienced property investor. Given the vast amount of possible investment properties, this small step can save you a lot of wasted hours.

You should also limit the cities you're considering to one or two. You can then determine the best and worst investment areas of a specific city by analyzing various factors such as crime and employment statistics.

The bottom line is don't rely on only the latest investment fads to determine where to invest your money. This can prove to be a very costly mistake, especially if you are new to property investment. Spend some time determining your motivating factors for investing, ask yourself several important questions and narrow your target area to one or two cities. These steps will greatly improve your chance of success. With a little planning and advice, you can develop a clear investment strategy and avoid the most common property investment mistake.

Surrinder Ahitan offers free property investment advice and tips on how to invest in residential and commercial property for maximum returns. Visit http://www.best-investment-property-tips.com where he reveals more valuable insider tips and property secrets.

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