Different Investment Opportunities in Property Markets

The real estate market thrives with many opportunities that give chance to people to earn. The portfolio is diverse such that there are also many investments to try.

Rental properties are among the most common of the real estate property investments. This is as simple as buying out the property and letting someone (tenant) rent it for some period as determined by a contract. While the landlord (property owner) is responsible for maintenance and tax dues, the tenant has the obligation to pay for the monthly rent.

The downside to this investment is if the landlord will have to deal with irresponsible tenants. These people do not care at all and can end up damaging the property.

If you’re not keen with this property investment, you can try the real estate investment group. It will let you buy apartment blocks, condo units or even townhouses with a single company acting as the property manager. You keep ownership, usually documented in block and white. The investment company collects payments for you whole keeping some portion of what the tenants pay for the monthly rent. In some cases, there is a portion allotted to cover for units which are left vacant for short periods.

Another property investment is called flipping. In this method, you buy a property and flips it to the next owner. It’s like buy and sell. Usually, flipping a property takes three to four months. You just have to be keen on eyeing properties that can be sold without having to alter them at all.

However, there are new flippers who also shell out small amount of money to make the properties they buy more attractive. Few renovations and improvements are done before they look for the next buyer. This buyer may be someone who just looks for his new house or someone who is also a property flipper.

There are also property investors who take risks on financing people who have mortgage dues. Some do these in exchange for collaterals like cars. Some take the property titles and return them to the owner when the debt has been repayed.

Real estate is truly diverse. Many forms of investments are now available for those who do not only seek shelter but also seek shield from financial crisis.

Real Estate, And Financial Planning: Best, When Used Together!

Many, often, articulate, some of the essentials, of financial planning, but, do so, without fully, paying attention, to what this should include, and mean! There are many necessities, including the need, to include, all possible components, which might enhance one’s ability, to be, as successful, from a financial perspective, as possible. However, many, only look at this, in terms of stocks, bonds, and other investments, without, fully considering, where real estate, should fit in, to the overall equation. It takes intelligent, financial planning, both, from an overall perspective, as well as, a specific one, to determine, how to create, the proper balance, and direction, for each of us. There is no such thing, as, a, one – size- fits – all, approach, but, rather, this article will attempt to consider, examine, review, and discuss, why, in most instances, real estate, should be, a vital part, of one’s personal, financial plan.

1. Beginning the process: One should begin, this process, by giving himself, a check – up, from the neck – up, and determining what his personal, financial goals, are, and why. Real estate, should be broken into two categories: personal housing; and investing. For most people, the value of their home, represents, their single – biggest, investment, as well, as housing, and owning, a piece, of the American Dream! In many instances, from an historical perspective, investing in real estate, has been a quality decision, because, not only, does the property, itself, help to keep up, with inflation, but, there are tax benefits (including depreciation, etc), and, when, done, properly, a positive, cash flow. Before, this can be done, effectively, and efficiently, it’s important to be prepared, for the financial necessities. These include: funds for down – payment, and closing costs; financial reserves for repairs, renovations, maintenance, and upgrades; and; a reserve for contingencies. When investing, consider cash flow, rates of return, and, both, the possibilities, and ramifications.

2. Do you wish to be a landlord?: Are you, ready, willing, and able, to be, a landlord, and the associated responsibilities, stresses, strains, hassles, and potential tensions?

3. Balanced portfolios: Wise investors seek to diversify, and, doing, so, means, properly, balancing, investments in stocks, bonds, savings, real estate, etc. Real estate, traditionally, increases, in value, at, or slightly, more, than the inflation rate, while, bonds, often do not, and stocks, are often selective, and challenging, to balance, and choose, properly and effectively.

4. Personal home: How important is it, to you, to achieve, some part of, the American Dream, by owning a home, of your own? It makes sense, to weigh, whether you should buy, or rent, where to do so, advantages and disadvantages, and the ways, to be, financially prepared, for contingencies, and enjoy it!

5. Investing in real estate: Some people use Real Estate Investment Trusts, or REIT’s, to participate, in real estate investing. They hope, to take advantage of professionally managed, portfolios, but, should, recognize, some are, more conservative, and income – oriented, while others, may be, less secure, and more speculative! Others begin their involvement by buying a two – family house, and it is wise, to weigh, the costs, versus, the potential, and risks.

Money Is Actually Important

“If you think that money is not important, you don’t have any”

After hearing the panelist make this comment, I immediately looked around the room to see who he just offended. Although I agree with him, I was surprised to hear him make such a strong comment in such a public forum. The truth is, this type of belief makes people without money, and no plans to get it, feel better. I have heard this a thousand times from family and friends when the topic of money comes up.

I remember growing up and watching the movie “Can’t Buy Me Love” in school. The basic idea of the movie is that an unpopular male high schooler is desperate for approval and pays the lead cheerleader to date him for a month; or to at least make it look as though they are dating. This way he will become popular, which was a guarantee of his happiness. The result was that she starts to fall for him and he does in fact become popular. The popularity however, does not make him happy. In fact, the lesson was that money cannot buy you happiness. He was much happier with his original relationships than he was with the new ones from the “cool crowd”. I was in elementary school when this movie was shown to my class and I still remember it.

I have always believed that money cannot buy happiness and that I could honestly be fulfilled without it, but I still wanted it and I still pursued it. I focused a huge part of my life to attain it and now, after all the years of hard work and struggle, I am glad I did. I live a very happy and fulfilled life, and money enhances it.

I relate money to alcohol. Alcohol, when consumed responsibly, can enhance an experience. It can make challenging situations easier and it can bond people together. It can also ruin your life! A difference of course, is that alcohol is much easier to get, but outside of that, there are a lot of similarities. They both are enhancers and they both can be addictive. They both can ease stress, but they both can create stress too. I know rich people that are miserable, and I know rich people that are happy. The money does not create one or the other.

There was a time as I was trying to create wealth that I lost almost everything financially. I went through an extremely challenging time in my business and my personal financial life. I stopped answering the phone because I knew it was debt collectors on the other end. I learned a great deal with this experience. One thing I know for sure is that I never want to be broke again. Although I believe having money is not a guarantee to happiness, not having money is a guarantee of at least some stress and pain. It is possible to be happy without money, but it is a hell of a lot easier with it. Money is important.

From my experience, the only sure-fire way to happiness is through solid relationships. These days I spend a lot more energy strengthening relationships with friends and family that make me happy. I also focus on limiting time and energy into relationships that drain me or do not make me happy. This is tough to do, but the results are positive. Over the years in business, my circle of friends has shifted to more supportive and positive people. This happened organically, but now that I am aware of it, I can focus on it. The real estate industry has been good to me in many ways, but the most important is the people that I have met and that I now spend time with. Some of the most generous, supportive, and amazing people in the world are real estate investors. It is helpful to have a little extra cash to have amazing experiences with people I want to be around.