The 5 W's of Investing in Real Estate...

By
Real Estate Agent with Keller Williams Realty Tampa Central Florida License#SL3096303

Investing in Real Estate

Here are the 5 W’s of Investing in Real Estate… The Who, What, When, Why, and Where.

investing in real estate directional sign1 – Who should Invest in Real Estate?  Anyone interested in creating long-term wealth should consider investing in real estate.  There are five different investor types and each type has a different plan for investing.  Each investor may also have a specific goal in mind when investing in real estate.  Whether you are ready to invest now or planning now to invest in real estate in the future, anyone willing to prepare and plan can consider investing in real estate as a way to create long-term wealth.

2 – What is Investing in Real Estate?  I will investing in real estatebegin the answer to this question by stating that investing in real estate is not a get-rich quick plan. Investing, by definition, is to put money to use in something that offers potential profitable returns.  Investing in real estate is putting money to work by buying and selling real estate for potential profitable returns.  With a defined investment plan, there are additional benefits to investing in real estate.

3 – When is the Time to Invest in Real Estate?  There are market indicators that tell when the time is "right" to invest in real estate.  These indicators include population growth, job growth, and knowing your purpose for investing.  For example, appreciation is one benefit of investing in real estate.  But given the current economy and the fact that the real estate market is still correcting from factors beginning in 2004, I would not recommend investing for appreciation alone.  Cash flow is another reason for investing in real estate.  For the Tampa Bay area, NOW is the time to invest in real estate.  The market indicators are strong and currently, there are properties available that will yield a positive cash flow.

4 – Why Invest in Real Estate?  Even with the real estate market correcting from events beginning in 2004, historically speaking, real estate appreciates in value over time.  Real estate is cyclical and therefore more predictable than investing in the stock market.  Positive cash flow and return on your investment are two reasons to invest in real estate.  There are additional benefits to investing in real estate that can be considered while making your investment plan.

5 – Where is the Location to Invest in Real Estate?  The location of where to invest in real estate goes hand in hand with the time to invest in real estate.  Again, the market indicators that tell when to invest in real estate also tell where to invest in real estate.  Real estate is local so what may be happening in one area of the United States or even the state you live in may not be happening in your area.  As investment strategies go, the first-time investor should invest close to where he lives or works.  Experienced investors watch the market indicators and typically invest for a specific cash flow or rate of return.  Tampa Bay is an area where the timing is right to invest in real estate.

And the final question for today,

How do I get started Investing in Real Estate?  Investing in real estate requires a plan.  If you are a first-time investor, contact me for a complimentary consultation to see if investing in real estate is for you.  Experienced investors looking for properties to add to your portfolio or rehab and resell, let me find the property for you.  Contact me today to discuss your plan for investing in real estate!

Posted by

Linda Holloway Your Next Home in Tampa Bay House

Providing Home-Buyer, Home-Seller, Residential Investment, and
Relocation Services in the beautiful Tampa Bay area.
Your Next Home in Tampa Bay Starts Here!
FREE Search for Tampa Bay Homes!

 Linda Holloway, Keller Williams Realty Tampa Central
1208 E. Kennedy Blvd, Ste 231, Tampa, FL 33602
Linda@yournexthomeintampabay.com     Mobile: 863-640-7492

close

Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Charles Stallions Real Estate Services 01/15/2012 01:31 AM
  2. Lanre-"THE REAL ESTATE FARMER" Folayan 01/15/2012 02:24 AM
  3. Charles Stallions 08/07/2012 01:57 PM
  4. Charles Stallions Property Manager 05/03/2013 10:28 PM
Topic:
Real Estate General Information
Location:
Florida Hillsborough County Tampa
Groups:
Investors
Tampa Bay Real Estate
Florida Real Estate Investors
Tampa Florida Real Estate Investors
2012 BIG Jumpstart Blog Challenge
Tags:
investing in real estate
income property
tampa bay
real estate tampa
real estate st petersburg
tampa investment properties

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
177,562
Erv Fleishman
Realty Associates - Boca Raton, FL
Luxury Prop Specialist Realty Associates

I disagree with when. Price is always the determinant. The overall environment could be awful, but the right price with the right cash flow in a good location will eventually be a winner. Market timers wait too long and are evaluating on the wrong criteria.

Jan 10, 2012 01:12 PM #1
Rainer
95,198
Linda Holloway
Keller Williams Realty Tampa Central - Tampa, FL
REALTOR®, Your Next Home in Tampa Bay Starts Here!

Hi Erv, You make an excellent point about price.  I should have included that in this post.  My market is Tampa Bay and in Tampa Bay, "the price is right".  Of course on the lower end of the price range, there is more "rehab" to be done on the property.  If someone clicks on the link for Potential Tampa Investment Properties, there are over 100 properties in the $60,000 to $80,000 price range currently on the market.  You make another great point about those timing the market.  I hear people waiting for Florida/Tampa Bay to "hit bottom".  I agree with you that if you wait too long, you miss opportunity.  Thank you for commenting!

Jan 10, 2012 01:25 PM #2
Rainmaker
4,001,153
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Linda, there are definitely things to think about when beginning the thoughts of being an investor.   GREAT post!

Jan 11, 2012 01:32 AM #3
Rainer
95,198
Linda Holloway
Keller Williams Realty Tampa Central - Tampa, FL
REALTOR®, Your Next Home in Tampa Bay Starts Here!

Hi Joan, I am a believer that creating long-term wealth and being a successful real estate investor requires a plan.  I appreciate your kind words and comment!

Jan 11, 2012 03:55 AM #4
Rainer
478,183
Not a real person
San Diego, CA

I was fortunate that I had a trust fund from my dad's death waiting for me when I was 18, so I bought my first property on my 19th birthday while I was still a freshman in college. I lived there and also rented out two bedrooms to four guys, which paid for my mortgage. I learned very quickly the power of ownership.

Jan 13, 2012 03:39 PM #5
Rainer
95,198
Linda Holloway
Keller Williams Realty Tampa Central - Tampa, FL
REALTOR®, Your Next Home in Tampa Bay Starts Here!

Wow Russel, I obviously don't know the details but I think the "appropriate" response is I'm sorry to hear you lost your dad at a young age.  But being able to buy your first property when you were 19 was a smart move.  I often wish if I had realized the power of ownership or investing in real estate many years ago!  I appreciate you taking the time to comment!

Jan 13, 2012 04:01 PM #6
Rainmaker
1,010,346
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Great solid tips.  Prices are so low it makes perfect sense to buy.  Investors make serious money when the economy is down like this.

Florida flag Featured Post - Florida Real Estate Investors group

Jan 14, 2012 01:56 AM #7
Rainer
95,198
Linda Holloway
Keller Williams Realty Tampa Central - Tampa, FL
REALTOR®, Your Next Home in Tampa Bay Starts Here!

Hi Rob, You make excellent points!  It is a GREAT time to buy and investors make money when the economy is down.  THANK YOU for the feature in the Florida Real Estate Investors group!

Jan 14, 2012 03:24 AM #8
Rainmaker
805,436
Lanre-"THE REAL ESTATE FARMER" Folayan
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Linda with a Real Estate Market like this,you can't afford not to buy. And the smart and astute Real Estate Investors who know a good thing when they see it are snatching up these properties with quickness. Worthy of a re-blog. SUGGESTED.

Jan 15, 2012 02:20 AM #9
Rainer
95,198
Linda Holloway
Keller Williams Realty Tampa Central - Tampa, FL
REALTOR®, Your Next Home in Tampa Bay Starts Here!

Hi Lanre, I always like to see your smiling face when you comment on my blogs!  You are right about the smart and astute investors.  Thank you both for the re-blog and for suggesting!

Jan 15, 2012 05:45 AM #10
Rainer
17,621
Andrea Lueth
The Real Estate Experts - Sugar Land, TX
REALTOR - Sugar Land Texas Homes for Sale

Hi Linda,

Thank you for commenting on my blog. This was a good post. I am an Active Rain Newbie and also a rookie realtor. I have been working with a few investors here in Texas. My broker has worked with them and referred them to me. I understand your 5Ws for investing, but what are the 5 types of investors? Maybe you can elaborate on that in another post?

Thanks for welcoming me to Active Rain, I return the welcome to you too. I look forward to reading more of your posts!!

Jan 20, 2012 06:27 AM #11
Rainer
95,198
Linda Holloway
Keller Williams Realty Tampa Central - Tampa, FL
REALTOR®, Your Next Home in Tampa Bay Starts Here!

Hi Andrea,

Thank you for stopping by my blog and commenting!  I am planning an upcoming series on the five types of real estate investors... Stay tuned!

Jan 20, 2012 06:40 AM #12
Rainer
201,514
Jark Krysinski *PREC (Personal Real Estate Corporation)
REMAX CREST REALTY WESTSIDE - Vancouver, BC
TeamYVR Team Leader, BA,ABR,IRES,IMSD,LLB

Hi Linda I've received my I.R.E.S. Designation in Vancouver, BC, Canada and I noticed that you have similar designations.  I'm messaging you because I want to expand my international connections.  I'm presently building a larger network so that your listings can be featured in my city (for an international exposure), and mine can be featured by you.  Presently I have approximately 20 listings which might be of interest to you.  

Interested?  Look forward to chatting some more with you with respect to co-listing each other's properties, if you are interested in speaking further?  Cheers, Jark.

Aug 31, 2012 04:34 PM #13
Anonymous
Perth property

Investing in property is one best things,, which you can do to make money. Perth, Victoria and Queensland are considered as the best place for purchasing investment property in Australia.

Invest in property western australia

Feb 13, 2013 05:40 PM #14
Rainer
95,198
Linda Holloway
Keller Williams Realty Tampa Central - Tampa, FL
REALTOR®, Your Next Home in Tampa Bay Starts Here!

It looks like I missed some comments on this blogpost.

France, I'm glad you found a helpful book.  Thanks for the information and for posting!

Jark, Congratulations on your I.R.E.S. Designation!  I missed connecting with you.

Hello Perth property, Thank you for sharing the best places to invest in Australia.

Feb 13, 2013 10:00 PM #15
Rainmaker
2,680,297
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Linda - Thank you for the excellent and necessary information about list of five W's of investing in real estate.

May 04, 2013 02:12 AM #16
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
95,198

Linda Holloway

REALTOR®, Your Next Home in Tampa Bay Starts Here!
Ask me a question
*
*
*
*
Spam prevention

Additional Information