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What do I stand to gain by investing in Real Estate?

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Question by John Kalu: What do I stand to gain by investing in Real Estate?
I have some spare which I want to invest and I was thinking of doing some real estate investing. But I really don’t know what I would stand to benefit from investing in Real Estate.

Best answer:

Answer by yourbilletdoux
Right now probably nothing other than rental income. You are unlikely to be able to flip a house in this market.

Add your own answer in the comments!

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  • Shone

    Hi
    How much do you plan to invest?
    I am in Moscow and I have some opportunities to invest but not the money.
    If you are interested I can give you the details.
    I can do all the work and we can be as partners.
    Even right now I have an opportunity for a capital product where there is 0 risk and e return of 6% monthly and a total return of the invested money with not less than 20% in 12-24 months. I think it’s is fairly good.

    Well,let me know if you are interested.

    Hope to hear from you

    Shone

  • Lone

    money, if done right.

    It won’t be without some headaches though, and an inexperienced investor can lose money easily.

  • Darrell Evans

    There are several:

    1. Tax advantages – not an accountant, but many opportunities in this categories

    2. Leverage – Someone else will pay off your investment while you gain the benefits

    3. Cash Flow – there are an abundance of homes in the market today that you can purchase and rent for very nice positive cash flow (I define nice as $500/mo or more)

    4. Long Term Appreciation (not the flip mentality) – Depending on where you live or want to buy, the market will take longer to recover but if you hold the property, keep it maintained and rented this will be very positive long term

    5. Interest Rates – if you are not paying cash, after the spring of 2010 you may not see rates this low again as the federal government’s infusion of dollars into the real estate market will run out and rates are likely to begin going up. Then there’s inflation that will kick in when the economy fully recovers which will push rates higher.

    As you consider your possibility of purchasing, there are a number of other things to consider when you decide what to do with you “spare” before taking the leap.

  • cheeseheads2005

    Your statement “what do I stand to gain” implies that you are not very aware of the risks and rewards.
    Before you invest your money make sure you have put pencil to paper and figured out the costs and benefits.
    You should clarify your business goals.
    “Real estate investing” is far too vague.
    Commercial or residential
    Individual investor or REIT’s
    Long term or short term
    Rentals or new development?

    If done right and if you educate yourself and treat it as a business you can do well.
    Like any other self employed business person you can expect to work very hard and have very tight cash flow at the beginning but in the long run you can build equity.

  • Realtoratheart

    John there are different kinds of investment in real estate. I would talk with other investors before deciding what to put your money towards. In today’s market, actually owning real estate may not be such a hot deal, but buying futures in the arena might, or REITs. Do more homework.

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