Real estate > The Benefits of Real Estate Investing

The Benefits of Real Estate Investing

by: Ken Smith

Real estate investing is increasing at a staggering rate these days.
More and more individuals are learning that real estate investments can offer wonderful earning potential. Real estate investing is a process which has many attractive qualities that make it a viable money-producing opportunity.
There are a number of benefits that go along with purchasing real estate investments and the following paragraphs will highlight some of these benefits. As you will see these attributes make it quite apparent why individuals are becoming interested in investment opportunities of this type.

Build Equity in the Property

For those individuals who are looking to invest in real estate on a long-term scale, there are certain benefits to doing so. When individuals purchase real estate and hold onto it for awhile, they are ultimately able to build a good deal of equity in the home they are purchasing as an investment property. Equity is a beneficial aspect for the homeowners as the more equity
a property has, the more that it adds to the net worth thereof. This is an important and frequently cited reason why individuals do choose to invest in real estate and maintain the property as an investment for a long period of time thereafter.

Possible Tax Advantages

Another benefit of purchasing real estate for investment purposes is the possible tax advantages that one may receive as a result of owning the investment property. Depending on a variety of factors, individuals who own investment property may just see some gracious tax advantages as a result. Therefore, individuals may be more than ready to invest in real estate once they have looked into possible tax advantages that result from engaging in a transaction of this type.

High Rate of Return on the Sale of the Property

When the investment property is sold somewhere down the road, the homeowners will most likely see a high rate of return on the sale of the property. Depending on the market at the time of the purchase and sale, this rate of return may be more than generous when one looks at the profit margin.
Some factors to consider if looking to purchase property and sell it within a short period of time after the initial purchase include current market for property sales, renovations and upkeep necessary to get the property ready for the sale and ability to hold on to the property longer if a sale does not come as quickly as one had expected.
If one has considered all of these possibilities and still feels that they will be able to sell the property quickly, then this is a wonderful benefit of real estate investment.

Lease the Property to Tenants

While some real estate investors choose to purchase the property and then sell it shortly thereafter, there are other individuals who have a different reason for purchasing investment properties and wish to obtain a profit by other means. These individuals are ones who prefer to purchase the property and then lease it out to tenants.
By doing so, the homeowners are able to pay for any mortgage which may be present on the property plus receive any additional income from leasing the property to tenants.

Investing in real estate is a wonderful way to gain equity in a piece of property, take advantage of possible tax benefits and maybe even make a considerable profit from the sale of the property once the individual feels like doing so.
These are some of the many reasons why individuals are purchasing real estate as investment property and current low interest rates make now a perfect time to buy. The benefits of real estate investing are difficult to pass up, so go ahead and find your first real estate investment property!

About The Author

Ken Smith is a real estate agent that runs

one of Chicagolands top real

estate teams. He has also started WebNewsForUs.com, a site that is

dedicated to real estate agents learning to use their websites to grow a

profitable business.

Real Estate Investor Question: Rehab and Sell, or Rehab and Keep?

by: Bruce W. Ford

Here's another awesome question I received from my discussion board. The question; Why bother keeping property after it's rehabbed? Why not sell it after the rehab and GET PAID!

Of course, the first questions that you must answer is how emergent is your need for quick cash? You can likely generate the most SHORT TERM cash by selling a freshly rehabbed house. But, you will give much of it away in taxes come next April.

If you keep it, you stand to make more! You will also enjoy some great benefits while you own it such as cash flow, a tax break, and MORE cash with the future appreciation. You can still pull some nice cash a few months after buying it when you refinance (post rehab) the property from your hard money (at 70% loan to value) to long term financing (at 85% or 90% loan to value).

The short answer is an investor is going to make considerably...

Real Estate Investor Question: Rehab and Sell, or Rehab and Keep?

Real estate > Real Estate Investor Question: Rehab and Sell, or Rehab and Keep?

Home Style Words in Real Estate Ads ? More Explanations

by: Raynor James

Whether you?re buying or selling, reading real estate ads can be confusing. Here are explanations of more style terms used in real estate ads.

?Split Foyer? style

A home entered by a foyer with a half flight of stairs up to the upper level (where the living spaces and one or more bedrooms are usually located) and a half flight of stairs to the lower level (typically housing the family room and additional bedrooms).

?Tri-Level? style

A home with three levels. It is typically entered on the middle level and has half flights of stairs to the highest and lowest levels. The living room, dining room, and kitchen are usually on the middle level. The bedrooms are usually on the highest level. The lowest level may be unfinished or have family room, laundry, and perhaps a garage located there.

?Contemporary? style

These vary greatly, but none looks as...

Home Style Words in Real Estate Ads ? More Explanations

Real estate > Home Style Words in Real Estate Ads ? More Explanations

Real Estate - Make Home Buying Pleasant

Real Estate - Make Home Buying Pleasant

by: Jay Bauder

Fun and purchasing a home are probably two concepts that cannot be further apart. Instead of being fun, purchasing a home might prove to be nerve-wracking and stressful. This is understandably so since this is an investment that spans a lifetime ? a whole set of generations even.

We can make it less stressful!

Buyers are intimidated by the various dimensions that make purchasing a home troublesome ? the legal aspects, the financial aspects, dealing with brokers, agents, insurance, and others purchase concerns.

But dissecting these roadblocks and adding some spice to you choice of property could make this life-changing decision an enjoyable one.

Step 1: Assess your finances

The question here is can the buyer actually afford payments for a home. The buyer may want to consult a financial adviser as to the strategy he or she may employ in paying for a home. This...

Real Estate - Make Home Buying Pleasant

Real estate > Real Estate - Make Home Buying Pleasant

Real Estate Team - Building One

Real Estate Team - Building One

by: Steve Gillman

I didn't understand the concept of a real estate team at first, so I had a hard time with real estate investment. I tended to be a "lone wolf," trying to do too much myself. I have since learned that in real estate, you need a team of people you can trust and rely on. Here are some possible team members, and what they need to be on the team.

1. A mortgage broker or banker. A broker can offer many options, but a banker can make the loan decision. They each have their advantages, and you could use both on your team. In either case it's important they understand what you want (fast closings, lower interest, corporate loans?)

2. An accountant or bookkeeper. To keep proper books for real estate investments is getting more complicated with all the tax-law changes. Find someone that understands the law, and understands what you want.

3. A real estate attorney. Find someone familiar with...

Real Estate Team - Building One

Real estate > Real Estate Team - Building One

Real Estate: Homes on Market Taking Much Longer to Sell, in Past Six Months

Real Estate: Homes on Market Taking Much Longer to Sell, in Past Six Months

by: Monte Helme

On average, the length of time required from real estate listing to contract has increased dramatically in the U.S. in the past six months, according to HouseHunt?s latest national ?Current Market Conditions? homes for sale activity survey.
Seventy-five percent of respondents said it is now taking more than 30 days. Of that figure, 30% said it is taking more than 60 days.

Three months ago, 52% of survey respondents said the average time on the market required for a home to sell was more than 30 days on the real estate market. Six months ago, only 35% said it was taking more than 30 days as buyer frenzy continued unabated.

?Current Market Conditions? 4th quarter survey also found:

Home sales prices remain firm.
Currently, 82% say they are getting 95% or more of asking home prices. This compares with 80% in the third quarter...

Real Estate: Homes on Market Taking Much Longer to Sell, in Past Six Months

Real estate > Real Estate: Homes on Market Taking Much Longer to Sell, in Past Six Months

Real Estate Team - Building One

Real Estate Team - Building One

by: Steve Gillman

3. A real estate attorney. Find someone familiar with...

Real Estate Team - Building One

Real estate > Real Estate Team - Building One