Real Estate Investing Made Simple
Author: PhyllisWheeler Total views: 18 Word Count: 375
Real estate investing may be a lot of things, but it isn't easy. At least that's what a lot of people think.
If you're investing for short-term appreciation, you are in for a bumpy ride in the current business climate. I think most people would agree that short-term appreciation isn't a reasonable goal these days.
If you're looking for long-term appreciation, you need to purchase a property at a price that allows room to pay management fees. Or you can manage the property. Here's what's hard to predict: the tenants.
In commercial real estate, you run the risk of not having any tenants, if the local market is glutted. And that is the case in many local markets. In residential real estate, you may find yourself doing a fair amount of maintenance. You may worry about finding the right tenant. How do you create a lease? How do you screen tenants so as to find the ones who will stay a long time and keep up your property for you?
You may want to consider a real-estate investment trust (REIT), if you want an investment that is low-maintenance. You buy shares in a REIT fund, which is publicly traded. The fund typically holds commercial property and/or mortgages. The value of these funds may go up when the stock market goes down, allowing you to hedge your bets.
But the fund fees can siphon off your profits. What if you want a simple, low-risk long-term investment ? One where you can file the deed in your safe deposit box?
What do you think of the idea of investing your money in a single-family house, to be rented out? You can choose the house from a variety of local sunbelt markets, and you can take advantage of negotiated relationships with property managers, insurers, and mortgage originators. All this at just five to 10 percent down on each house.
Using such a system, You can set up an investment with known costs, and then let the tenants pay off the mortgage for you. It's a great way to start a college fund for your young child. All you will have to do is sell the house in 15 years and extract the equity.
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About the Author
Search out more about one company that offers an easy real estate investing system. Writer Phyllis Wheeler advocates PAREAS for real estate investors as she has watched this enterprising start-up grow from its beginning in 2005.
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