Minggu, 31 Januari 2010

Investing in Real Estate

Investing in Real Estate

Real Estate is the best asset class if you want to generate money from both the Cashflow & Capital Gains. I am talking about Rental Properties. Since past 2 decades, the Real Estate in USA & parts from all around the world has been appreciated a lot. However, since 2007, because of the Sub Prime Mortgage Crisis in USA, the Housing Bubble has burst and the real estate prices all around the USA has come down drastically.

Now, many people are afraid of investing in the real estate. This is because previously people used to think the prices of the real estate goes only in one direction and that is up. But it’s not the true. Today those investors, who had invested in the real estate for the Cashflow are much better position than those who had invested for merely capital gains.

And That’s why I advise people to invest for the Cashflow rather than Capital Gains. You should always calculate the ROI (Return on Investment) before doing the real estate investment. And if the Cashflow is negative you should not buy that real estate. You should only invest in the real estate if it gives you the positive cashflow.

If you want to become a real estate Investor than I can suggest you a great course.

Real Estate Cashflow – Apartment Building Cashflow

You will find lots of real estate investment strategies in the above course. You will become master in real estate investing after you learn this course.

REMFs & REITs -

Now, not the everyone can afford to invest $ 100,000 to buy their own rental property. And here the concept of Real Estate Mutual Funds (REMFs) & REITs (Real Estate Investment Trusts) comes. They are just like the regular equity mutual funds means they pool the money from large number of small investors like you and me and after that they invest in various real estate, infrastructure and rental properties projects. Their main objective is to generate rental income and distribute among the Investors.

Thus, now if you have just $ 1000 in your pocket than also you can invest in Real Estate via REMFs & REITs.

Right now in USA, the prime location properties are in the process of foreclosures and this is the opportunity to invest in the real estate at bargain price for me. So take the advantage of foreclosures around you and spot the great property for you.

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