title transfer holding | strategies for investing in real estate

Post on 09-Apr-2017

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Real Estate Investment is lucrative. It is an investment in an illiquid asset and the risks are high. You need to make some smart choices upfront when buying investment property.

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Real estate investment statistics

U.S.A. was ranked in the number 1 position with global commercial real estate investors in 2012.

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Real estate investment statistics

12% of all adultAmericans are actually real estate investors.

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Real estate investment statistics

3% of the U.S. populationof adults are active real estate investors.

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Real estate investment statistics

3.5 million willbuy 5 or more housesin a year.

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Real estate investment statistics

65% of the3.5 million peoplewill continue toinvest in real estate.

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Real estate investment statistics

$ 9.2 billion is spent on renovatingreal estate.

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Office Property: Investing in office property is the“flagshipinvestment” for many real estate owners. The demand is directly proportional to theincrease in white collar jobs.RISK: Office buildings have high operating costs, so losing a tenant can have a substantial impact on the returns for the property.

Ways to invest in real estate

Retail Property: Retail properties range from large enclosed shopping malls to single tenant buildings in pedestrian zones. Location, visibility, population density, population growth, and relative income levels play acrucial role in the demand for retail spaces.RISK: Investing in retail property has a lower return than office buildings.

Ways to invest in real estate

Industrial Property:Includes buildings used for warehousing, manufacturing, research, and development. Lower operating cost than above twocounterparts.RISK: Risk is lower. Losing a tenant can have great impact.

Ways to invest in real estate

Ways to invest in real estate

Multi-family residential property: Most stable return. Loss of a single tenant has a minimal impact.

RISK: An increase in building operating costs has to be borne by the property owner for the duration of the lease.

Tips for investing in real estate

Real estate investment is a business: Treat it as such. Start by developing a good business plan, detailing the nuances of starting and running your business, with realistic goals over time frames.

Tips for investing in real estate

Check your financing abilityDetermine your ability to finance investment property. Make sure that your total debt-to-monthly-income ratio is low.

Tips for investing in real estate

Find a good bank or mortgage broker: A good bank or mortgage broker is needed if you plan to finance your investment. Advice from real estate agents or other investors are good sources of information.

Tips for investing in real estate

Look for for the best area to buy properties: Don’t make the mistake of limiting the search to areas close to home: expand it further where you might get a better bargain.

Talk with other investors about local real estate: Join a real estate club in your area. They are great places to network with other investors, lenders, and repair service providers. You can often pick up helpful advice about your local market from other club members. Consider joining an online investing forum if there isn’t one for real estate.

Tips for investing in real estate

Tips for investing in real estate

Find a good realtor to help you locate properties: number of investment properties, and also understands concepts such as return on investment (ROI), net operating income (NOI), and debt service.

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