Is Investment Property a Good Idea in Today’s Economy?

Saturday, November 28th, 2009 at 2:14 PM

Real estate investing

has and will always be the most powerful way to build unlimited wealth. Yes, we are in a financial meltdown and everybody is screaming “Abandon ship!”; but this is the type of blind panic that will make investing in property a true investment juggernaut that will set your family up for generations to come. Do not be fooled by my tone, this type of investment vehicle is not an overnight financial cash cow!

The question I get asked the most is; “Is Investment Property a Good Idea in Today’s Economy?” Well, let me answer that by saying that the real estate prices have dropped so significantly that this is a great time to buy property for investment. The time to invest into rental property has arrived.

Another tip is you should get to know your locations well. You will want to make sure your location is desired area for renting.

For junior investors, I believe you must start small. Perhaps a 1 bedroom or 2 bedroom condo would fit the bill. I have said this before, but try to save money for a down payment. With no money down it is near impossible to secure positive cash flow. I also preach that a good credit score is essential; especially in today’s economy. A great FICO score may significantly reduce your mortgage repayment installments which has a good impact on your monthly cash flow. If you decide to pursue homes versus condos, I recommend beginning with “starter homes” rather than moving into the more expensive family homes or even commercial real estate.

This will also help in the chance that you are not able to rent the home and you have to take over the payments

Another very important tip I have for you is to only pursue motivated sellers. You will weed out the signs from a highly motivated seller or your real estate agent will know. You should strive to always have a professional inspection of your commercial real estate property or home or condo. Some fore-go this important part of the process and it ends up being a mistake.

With the economy the way it is, there are people out there that prefer to rent versus buy a home. It is why I truly believe investing in investment property has and will always be a good idea even in today’s economy. Just make sure that you do your homework. There are many sources and people out there to help you.

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For more information go to => http://www.yourprimerealestate.com/real-estate
Dr Thoriso Mashego is a successful medical doctor with his own private practice in Cape Town South Africa. He owns an online business and an avid real estate investor/trader.

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How To Start Investing In Real Estate

Friday, November 27th, 2009 at 5:27 PM

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How to start investing in real estate

is often an important question raised by individuals that want to become involved in some type of investment but want something that is a little more solid and trustworthy as opposed to the stock market for example. The following are some tips that should help the individuals to get started.

Tip #1: Decide how much you have that you can invest safely.

Remember unless you are paying for the property totally that you are going to be investing in you are going to have carrying charges. You must be sure that if something unfortunate were to happen that you would not be under financial stress.

Tip #2: Do some research into the different types of property

investment that is available to you. There are many so what you may want to do is choose a few that interest you the most and narrow down your choices. As you learn how to start investing in real estate you can focus on those areas of interest.

Tip #3: If you are going to be augmenting your investment by

obtaining a investment loan then you really need to shop around. There are many lending institutions and they are not all the same. Some of them have more demands than others. Then there are those who only specialize in specific types of property investments. Finally there are those that have higher interest rates as opposed to others. So as you can see you are going to have to be fairly knowledgeable in this area as well.

Tip #4: Do not rush into anything. Often when you are first learning

how to start investing in real estate the tendency is not to want to miss out on what you think might be a good deal. It is not worth taking the risk of losing your investment because you did not have enough time to fully research the pros and cons of the deal. There are always good deals to be had in property investment and if you have lost one there is another one waiting.

Tip #6: Do not be embarrassed to ask for opinions from the professionals.

When you are first learning how to start investing in real estate there will be a multitude of questions that you need to seek out the answers for. You want answers that are correct and valid, therefore the experts are the best ones to approach.

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I invite you to learn more about Real Estate Investing and join our FREE weekly tele-seminar class by going to http://www.realestatewealthtoday.com/TuesdayTipsSignUp.html
Mike Lautensack is a full-time real estate entrepreneur, coach and mentor and creator of the Private Lending Presentation Kit. To learn more go to
http://www.learnrealestateinvestingblog.com/ .

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