“Real” is a Latin word which means existing or genuine. Real estate was first acknowledged in the 1660s. It is an existing property of land or building containing some natural resources like crops, water, trees, minerals and so on. It can also include structures like roads, fences, houses and bridges. Whether you buy, own, invest or manage a real estate or maybe do all of the above mentioned, I assure you it’s a wise decision that can make you wealthy and keep you comfortable for life.
Real estate can be used for commercial, industrial or even for residential purposes. It has some qualities that differentiates it from other businesses or money making investments. Some of these are
IT’S SPECIAL
Real estate is special in the sense that one real estate is never the same with another. It’s unique and that makes it outstanding amidst all other assets.
IT’S RARE
It cannot be seen everywhere. The land or building is in fixed supply and a lot of structures can be done on a particular land at your will.
IT’S IRREPLACEABLE
The structures or infrastructures cannot be replaced, relocated or pull down by any governmental organization, and this gives you full confidence of your further assets in future. This simply means your property is safe.
IT’S VALUE APPRECIATES
It’s value or worth never goes down or depreciates, but rather increases. You can buy a real estate this year for a smaller and sell it in the next three or four years for a bigger amount, which generates more income or profit for you.
IT’S UNMOVABLE
It is an unmovable property that cannot be carried from one place to another by any, either now or in the future.
“How To Start As A Real Estate Investor”
TYPES OF REAL ESTATE
Before you invest in real estate, it’s very important that you should know it’s type, so as to be able to select which one is best for you because most times it feels overwhelming to choose.
- COMMERCIAL: This is a property use for the purpose of doing business like medical centers, parks, fast food joints, shopping malls, garage, gas station, movie theatre, viewing centres and amusement parks.
- INDUSTRIAL: This is a property use for production, manufacturing, processing, storing and distributing of facilities like freezer, warehouses, food, data server and solar generating stations.
- RESIDENTIAL: This is a property use for duplex, family houses, town homes, etc. It is where people live and also rent properties for living. This is a good investment because it is a multipurpose source of income.
- LAND: The last but not the least is land. This is a natural property which is bought for future use and development. This gives one right or access to some of the natural resources such as water, mineral, etc. This type of real estate includes an empty land which is yet to be developed, farm, orchard, etc. Even our forefathers knew and understood the importance of land, that’s why they invested in it. Today, their generation and generations to come are still benefitting from it. Investing in land is an endless lucrative business.
HOW TO START AS A REAL ESTATE INVESTOR
One of the basic human need is shelter and that has left many restless while in search of a better place to live. Every day, new offsprings are brought to life and the world’s population keeps increasing which results to the high rate of investments. Real estate investment is the best option for anyone who wants to get out of poverty. When thinking of starting as a real estate investor, the first important to do is to sit and strategize on how to make money in real estate using fix and flip method, buy and hold method and buying cash producing properties. These are steps to follow in order to start as a real estate investor.
“How To Start As A Real Estate Investor”
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DECIDE ON WHICH INVESTMENT STRATEGY TO USE And these are some of them:
* Finding and managing rental properties
* Partnering with other investors
* Earning commission as a licensed real estate agent
* Fixing and flipping of lands
* Buying of shares
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BEEN THE BEST IN YOUR FIELD
Practice they say, makes perfect. The more you do, the more you learn. Understanding what you do goes a long way in bringing success to labour. So far you are in this business, you keep learning in order to take it to the next level because nobody knows it all.
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COMPREHENDING THE INs A AND OUTs OF THE MARKET
It is very important to understand the ins and outs of the market you want to invest in. Things like the property values, income potentials, positivity of cash flow and buying and selling aspect.
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HAVING PLENTY OF CAPITAL
Real estate investment sometimes require a lot of capital. So when considering of becoming a real estate investor, make sure you have access to plenty of capital. In order to achieve this, you have to set up a separate capital reserve account for repairs and maintenance.
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STUDY AND LEARN THE ESTATE LAWS/ DOs AND DON’Ts
Understanding the laws that guides the estate can save you a whole lots of trouble and problem. These are some of them:
* Check the background of every tenant
* Do not remove tenants anyhow and always
* Pay your security bill to secure your properties
* Make sure you have an insurance coverage which protects you against tenants or guest’s claims.