Real Estate Investing in a Changing Market
Author: Dorothy Blake Article source: http://www.articlealley.com/. Used with author's permission.
Investing in Real Estate is a different ball game than buying a house in which to live. Real Estate investment is all about leverage, and using "other people's money".
As a Realtor in Central Florida, I specialize in making thousands of dollars for my clients, through shrewd Real Estate buys. My most successful Real Estate customer is a pharmacist in the Miami area who bought 10 acres of land for $65,000, and successfully "flipped" it six months later for $175,000.
In my market area, the 'buy and flip" Real Estate model has been charging ahead like an out-of-control bullet train for the past four years. Now, the train has slowed down. In Real Estate terms, "buy and flip" means that you buy a property and put it back on the market within a short time after the deal has closed. Many Real Estate investors actually get a property under contract and look for a buyer of their own before they close on the original deal! I know one man, also from Miami, who has become a multi-millionaire using this formula, along with taking back owner financing for the people who buy Real Estate from him.
"Buy and Hold" in Real Estate means a longer term investment. You buy a piece of property and hold onto it for a number of years, as a "trust fund" for retirement, college education for your children, etc. If it's a house, condo, or another type of dwelling, you rent it out while you own it to help pay for the mortgage, taxes, etc.
Another area of Real Estate investment is "Pre-construction". This model works when market values are on the rise. The blueprint for success is to:
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