Are Real Estate Investments Right For You?

Real estate investments are a form of investing just like stocks, bonds or CD's. However, unlike these, real estate is often more complicated to purchase and is definitely harder to sell.

With liquid investments such as stocks, you’ll do the research and make the purchase. The stock will then sit in a brokerage account where it will hopefully appreciate in value and/or pay you dividends. When you decide to sell, you simply go online or make a phone call and it’s done.

Not so with real estate. There’s always something to do or spend. This usually takes the form of upkeep or marketing. However, when handled properly real estate can yield larger dividends for the money, than most stocks ever could.

If you own a home, you have already invested in real estate. And you know about the upkeep and maintenance mentioned earlier.

However, true real estate investments usually involve one of the following:

  • Buying property and leasing it to tenants
  • Buying distressed properties below market value, fixing them up and selling for profit
  • Buying properties that are under-valued or in up-and-coming areas, holding for a short time and then selling for a higher price with no improvements made to the property (flipping)
  • Buying raw land and developing homes or commercial buildings and either leasing or selling the property

These investments can be either residential or commercial properties. Each has its own advantages and drawbacks. However before considering any investment in real estate, its ultra important to do thorough research first.

This goes for any investment you’re thinking of making but with real estate, it’s even more important because of the difficulty and cost involved in getting out.

Learn all you can about real estate investing before getting involved in it. This way if you decide it’s for you, you’ll be equipped to make informed decisions and smarter investments. And who knows, you may end up being the next Donald Trump!

From Real Estate Investments to Investing Money