Real Estate Essentials – Passive Income From RE Investments



Learn How You Can Explode Your Passive Income Through Mastering Real Estate Investments

Real Estate Essentials – Explode Your Passive Income Through Mastering Real Estate investments is an eBook that is aimed at helping you become successful by investing in real estate. This is research based on expert advice and firsthand experience of real estate investors.

And today the book, from which this post was extracted is yours for the keeping. Yes, it’s your FREE gift simply because you are a visitor to this, the REAMS blog-site.

Following is the excerpt from chapter 2 of Real Estate Essentials – Explode Your Passive Income Through Mastering Real Estate Investments

What to Consider Before Investing in Real Estate

Synopsis

In chapter two, we look at the factors to consider before real estate investment. There are many benefits of this kind of investment. However, you just can’t rush in and put your money in it before making a few considerations.

  • Capital
  • Returns on investments
  • Analytic abilities
  • Investing your time
  • Stress Management
  • Research
  • Market Research
  • Return rates
  • Type of investment to make

There are people who are well suited for real estate while others may not be able to handle the pressures and stresses that come with this kind of investment. You have to learn about what to expect in the industry so that you can gauge which category you fall in.

Remember, even if you don’t have what it takes, maybe you can work on this. There are things that you can learn with time. There are also solutions to some hurdles that may be presented by real estate investments.

Think About This!

Capital

This is one of the key considerations to make before investing in real estate. You will need to have adequate capital in order to make your investment. Even if you save a lot of money, probability is that you will require further funds such as loans.

To invest in real estate is not easy because properties normally cost a lot. In addition, apart from buying the property, you may have to do some repairs or renovations. You have to ensure that it is in good condition so as to get a good quote when you decide to sell it.

Apart from the cost of buying property, there are also additional transactional costs that you will incur. For instance, there may be a brokerage fee. There are also taxes that have to be paid. You can look for loans or other means of raising the capital well in advance. If you don’t manage to do this, you should then consider alternative investments.

Returns On Investments

Investing in real estate doesn’t guarantee overnight success. If you are looking for an investment that will give you returns in just a month or two then this isn’t the right investment for you. Real estate investors know that you have to be very patient in order to get your returns. You also need to set realistic goals.


If you try to rush your investment, chances are that you will make losses. Desperation may force you to make bad decision such as selling your property for less money that you would have if you had taken your time. Real estate investment can be very profitable but it takes time. In addition, it also takes a lot of hard work. This is not the kind of investment that you will make and just wait for returns to materialize. You will need to work hard so as to succeed.

Time Investment

You should be willing and able to invest both time and effort before getting into real estate investments. There are many people who have managed to invest in real estate on part-time basis. This means that they have full time jobs but still have to manage their investments. This doesn’t mean that they don’t have to give adequate attention to the investments though.

It is good to try and see if you can spare adequate time in advance. Just test yourself like you would if you had already made an investment. You can use sometime to consult with people in the industry and carry out some research. This will allow you to determine how much time you can invest in real estate. If you try out this exercise and find out that you are unable to spare sometime from your job, then you are not ready to invest in real estate.

Click this link to get Your FREE Copy of REAL ESTATE ESSENTIALS eBook!


More Relevant News

Wells Fargo To Exit Wholesale Channel After Fair-Lending Accord

From Bloomberg, an article written by By Dakin Campbell and published Jul 12, 2012 11:58 AM ET

Excerpt:

“Wells Fargo & Co., the largest U.S. mortgage lender, said it will stop funding loans originated and sold by independent mortgage brokers after settling a federal fair-lending investigation.”

“The company made $7.4 billion of mortgages through brokers in the first quarter, the most of any lender and 21 percent of the industrywide total, according to Inside Mortgage Finance, a trade publication. The loans made up about 5 percent of the company’s total, according to the statement.”

The Question of “How Much”? In Real Estate Investments


If you are considering real estate investments as a part-time business, a full-time career, or a means of raking in some extra cash during your retirement years, one of the first questions you must have an answer to is…How Much? How much do I want, or can afford to invest? How much of a return do I want to get back on my investment? How much work/time am I willing to personally contribute to my new venture?

The answer to your first “how much” question may be the easiest one of the 3 to answer, based simply on your cash-flow position. However, it still requires a good deal of thought and planning on your part, because even if your financial position is very strong, you still need to work with an investment budget that will be used specifically for your first real estate investment as well as future investments. Obviously you’re not going to just throw money at any of your projects.

If you haven’t constructed a sensible and comprehensive plan then the answer to the second “how much” question will be quite an easy one, but not necessarily a sensible one. “As much as I can get” is hardly an answer given by a prudent (if not astute) investor when asked what kind of ROI do you anticipate? No, you must think in terms of percentages, albeit a wide range of percentages, but nevertheless percentages. This answer will have more to do with how you answer the third question than the second question, because the higher of an ROI you want to get, the more of your personal time/work you may need to contribute.

Let’s look at it this way. If, for example, you have the knowledge, experience and expertise to manage most aspects of your real estate investments, and you have the cash resources to make purchases without the need for financing, you automatically eliminate at least 3 real estate specialists that would otherwise have to be a part of your investment team, so to speak. In doing so you eliminate any fees, commissions or charges that would have been paid to those specialists thereby increasing your ROI.

Investment in real estate of any kind doesn’t mean just handing over an extra amount cash. With every large investment, there are specific rules and processes that are defined in order to ensure that your money will be going to the right place. If you are investing in real estate, you will want to know what initial investments will be as was mentioned as the first “how much” question.

If you have found a property and are beginning a process for buying that property, you will begin to make some initial investments soon after the first contract is signed. Most real estate purchases will require a down payment, which usually consists of money going to the person that is selling the property. This will then be credited towards the purchase you are making. If you have extra money set aside, you may want to include it in the down payment, as this will make a difference in the amount you’ll have to finance, your final approval AND the amount of your monthly repayments.

Another set of investments that you will be making is for any extra costs from the team that you have put together. For example, a property inspection will usually cost a small amount of money. There may also be extra fees linked to the lenders paperwork and other expenses you may incur relative to the contract. Every person that is working with you will receive a commission or part of the investment that you are making in the beginning.

Before you start out in search of viable real estate investments, make sure that you know about the initial out-of-pocket costs and how it will affect your bank account. Setting aside a specific amount of money for your first property, or knowing how much to include in a down payment after buying a second property will help you to make the right decisions from the beginning. You will also want to make sure that you walk into your investment property with enough money to get you completely in the door and ready for the next phase; Preparing your new investment for resale or tenancy.