Friday, August 7, 2009

Is Real Estate A Good Investment?

You could play the stock market or invest in certificates of deposits or bank bonds, but with interest rates so low on these investment options, the return on your investment can take years to realize. Investing in real estate is the growing trend right now. With all the foreclosures and short sale properties, cash real estate investors are considered smart investors. No other investment will offer the benefits that are available to them.

A cash real estate investor has 5 different ways to make money:

· Appreciation – nobody’s making land anymore. So any land you buy is going to do nothing but appreciate over time. Even when there is inflation, land will appreciate in value.
· Leverage – when you are purchasing land, banks will loan you from 90% to 100% of the money for that purchase. This is because it’s not going to go anywhere, they can foreclose and repossess it. Giving them leverage to resell it higher than you owe on it.
· Equity Income – when you make a payment on your house or your car, you know a that part goes to interest you’re being charge and the rest goes to the principle of the note. While a real estate investor knows he won’t see that money every month, he does know that should he sell the property, he will see that money at closing.
· Control- as a cash real estate investor, you can control the performance of your investment. With real estate investment, regardless of other market conditions, you control your investment. If you become a landlord, you control the value. Raising the rent is obvious, but offering incentives and bringing in long term tenants is a theory for long term monthly cash flow.
· Cash Flow – a real estate investor will rent a property out in an amount that is higher than what he paid for the property. This produces a monthly cash flow. Unlike other investments, a cash real estate investor will benefit from a larger percentage of cash-on-cash return.

If you have some money that you’re looking to invest, invest in something that everybody wants and nobody is making more of! Learn how to become a cash real estate investor as part of our distress property solution for home owners that need to sell their house fast for cash.

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