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