Tell us what you think. Some properties are great for buy n’ holding. Every new investor dreams of starting a real estate investment company, making lots of money and living the “good life. Next up is Fixing N’ Flip/Hold, which is finding properties undervalue and fixing them up to either hold onto for cashflow or to sell immediately for instant profit
This is the key to real estate investing over the long-term. It is the “why” that will provide you with the motivation and energy to invest in properties. Without understanding the “WHY” you will never succeed. Learn how to value property. Are they willing to loan money to buy paintings, antiques, diamonds, mutual funds, CDs, commodities, stocks & businesses? If so to what level of funding? For properties banks will easily lend to 70 or 80 or 90 percent and in some cases to even 100 percent of the value
As with anything, one needs to take a look at how an investment vehicle is being used. Looking at the investment part of real estate, one would quickly notice that, as the economy went bad a lot of small real estate investors lost their properties to foreclosure. You can buy a property and receive all the benefits of ownership using leverage. The city comes in and puts in landscaping, new sidewalks, a park, and a number of other improvements
The market pundits are predicting that these rates will probably be around for the next couple of years. Most investors like to have some type of cash flow when they implement this strategy. US Housing market where valuations were pie in the sky, mortgages were offered at greater than 100% of the inflated underlying value, and the mortgages were non-recourse to boot! IT PROVIDES STABLE CASH FLOW STREAMS THAT CAN GROW OVER TIME
e. Since it refers to the expected rate, rather than the current rate of profit, marginal efficiency of investment is liable to a great deal of fluctuations in the short run. Since land is not available abundantly laterally, the buildings are stacked high onto each other for several stories as can be approved by the Local Authority. All these create great opportunities for buying and later on offloading to the market once the developments are complete