Category Archives: real estate

An Inexpensive but Beautiful Apartment

I was looking for an apartment in the heart of the city, but I did want to live in a noisy place, if that makes sense. I wanted the best of both worlds, and I had to find this place on a limited budget. I am not poor, but I am by no means wealthy either. A friend of mine told me that her cousin had found an inexpensive apartment through the Al Barakah website, and she had been there and found it to be very comfortable. I decided to go to the website and see if it would hold the same kind of luck for me.

The site is very easy to use, and I was able to customize my search in a number of different ways that helped me find the perfect apartment for myself. It is only me, so I just needed a one bedroom apartment with a single bathroom.

Advertising Ideas for Realtors

Being a realtor is not a difficult task, if you have an ability to convince, persuade, and close down a sale. However, in order to be seen by customers as the best realtor from the entire lot, marketing is necessary. Hence, the need for advertising. Let us have a look at some interesting ideas to advertise your properties.

Website

Creating a website for your firm is one of the great ideas and is a popular advertising technique. You can make it informative and attractive while still keeping it professional. Provide sufficient details about properties and update the website regularly. Add a section to invite questions from potential clients and also give complete contact details. You could have a comment box, wherein your previous customers can comment on their experience, or can share articles on the same. Ensure that your website is regularly updated and also see to it that you reply promptly to any queries raised.

Publicize

Publicize the name of your firm by distributing leaflets. Mention some famous properties which you have sold successfully that people can easily recall. Mention about any additional service like housecleaning service, or lawn service you will be able to provide at some discounted rates. Think of other innovative ways to attract more clients to your firm. Not only are leaflets cheap advertising idea, but they are also effective as you can cover lots of ground by distributing leaflets.

Yellow Pages

Yellow pages is another most popular idea. Ensure that you have a big page, all to yourself, in the yellow pages. There too, you can mention some of the additional services that you can provide. This will certainly give you the edge in comparison with your competitors. The advertisement in yellow pages should be professional, at the same time, it should be more appealing.

Magazines

You can place advertisements in home decorating magazines and interior decorating magazines. Place them at strategic positions so that they can grab the reader’s attention. You can ask previous clients to say something about your firm and the services offered by your firm. These testimonials from your clients will be of great help in boosting your prospective client list.

Fairs

Property exhibitions, small and big community fairs are very common and can be some of the best places to let people know about your firm and the services it provides. Stalls at a fair can be one of the popular ideas. Book a stall and ask all the people who visit your stall, to give you their email id’s, so that you can keep them informed about your listings. Also collect their business cards, if possible. This will help you in making your own database. You can later keep on increasing the database with continual contacts with these people, and by asking them for more references.

Malls

Mall is a place where you will find many people. Set up a stall at a strategic location and distribute leaflets and business cards to people. This is a good way of increasing your database. If you go on a weekend, or in the evenings, you will be able to access more people. This could become a free advertising idea or if you are required to pay money, it will be minimal.

Other Websites

In addition to having your own website, you could also enlist the name of your firm on some other websites which help in advertising. Such sites can help you to increase the number of prospective customers, as they reach out to a lot of people at the same time. Ensure that all your contact details are updated regularly.

One can even consider ‘word of mouth’ publicity which always helps. Request your customers to mention your name to their friends and family, who are looking out for properties. You could go to some charity or fundraising event and drop in your business card. One thing that you need to do is to keep your database updated and ensure that all your customers get the same kind of treatment, in order to be successful at home selling.

Commercial Real Estate Marketing Ideas

No matter what official reports may depict and economic surveys may show, we all know that there is no dearth of prospects who would be interested in buying a piece of prime real estate. However, supply of land is limited and demand always exceeds it, especially if it is lucrative. So you must be thinking that it is a cinch for real estate owners to sell their offerings at good prices. Well, it’s not always the case.

When it comes to small-sized properties, attracting prospects can be quite a challenge, given the large number of options available in this segment, in the same location. So, how do people dealing in such commercial properties grab the attention of interested parties? Here are a few handy tips:

Cash in on Expired Listings

An expired listing is the easiest way to get you the right leads. Well, the fact that it’s an expired listing clearly points towards some unpleasant issues that have taken place previously, which have left the prospects disillusioned and feeling betrayed by the dealer. This is the best opportunity to win them back, by positioning yourself differently from your predecessors and walking the talk. In fact, you can actually enter the scene as a consultant and then lay down your pitch once you’ve won their confidence.

Start a Circular

If finances are not a constraint, you can approach the newspaper publisher of the target area and get them to print a 2 – 4 page free supplement on current real estate trends and a listing of the properties under your dealership. This supplement can be a weekly one and be dropped along with the main newspaper on a Saturday or Sunday, because a weekend is the time when most people would indulge in the luxury of a detailed scan of the newspaper.

Contact the Owners

One of the best marketing plans is to contact the owners of For Sale by Owner properties directly. You can easily get their contact details from the newspaper or other published advertisements, and make cold calls. However, if you are not averse to some field work, you can take a tour of the target area and make a note of the properties that hold signs expressing the need to sell or rent the property, and then contact the owner in person. Direct contact makes a better impression than random calling, as the owner would have received multiple cold calls. Your meeting him in person makes you likely to be better remembered than the others.

Advertise

This is one of the most conventional but effective ideas for marketing commercial real estate. Make your advertisement creative, yet relevant, and you’ll be surprised by the volume of response. When you advertise, you get contacted by a lot of prospects who are not included in any list or who do not advertise their property themselves. You can also take the help of a bulk mailing list, either existing or newly drawn up, to send direct communication to prospects.

Lastly, cold calling, the most conventional method, qualifies as a workable option every time. However, rather than resorting to it as the primary method, you can use it as an auxiliary strategy to provide a boost to your overall marketing plan.

Best Real Estate Advertising Ideas

images-6If you’re not visible in the real estate market, you don’t exist from the commercial viewpoint. Buyers who’re looking out to buy their dream home are always on the look out for properties that they can reach through credible sources. So if you’re a real estate broker, you must take the advertising part seriously. Earlier, word of mouth publicity or references and for-sale-sign were the only way to sell a property. However, times have changed with the evolution of the Internet. Visibility in the real estate market can be increased by following some of these tips.

The Ubiquitous Classifieds
Local and national newspaper classifieds are still not obsolete, and so you shouldn’t mind advertising in them about your property. This is specially true for large-scale real estate firms who have dozens of properties to be sold. Thanks to the Internet, even online classifieds are available on websites like Craigslist. In fact, every Internet search engine, be it Google or Yahoo, has its own real estate listings. You can take the help of their listings. Do include digital images of the property you’re showcasing. Your buyer may like the design of your property and if he is interested, he may visit the property to see it personally. You can also post information or ads on social sites like Facebook.

Virtual Reality
Ever made a video or done something similar? If not, then it is the time to do so. If you’re a large real estate firm, hire professionals and make a video featuring your property and surroundings. Professionals will do it very creatively, and it will look like a typical TV ad. Upload it on YouTube and register with companies that help in uploading virtual tour videos on several real estate marketing websites. While YouTube membership is free of cost, you may have to pay some money to virtual tour video uploading companies.

Online Advertising, a Present Reality
Pay per click advertising has been the biggest hit in recent years. You can take the help of Google AdSense to put ads of your property on the Internet. When a user is searching for information related to property, the ad may pop up informing the reader about your property. You’re only required to pay for the ad, if the user clicks on it. The same link can be used to direct users to your blog or real estate firm website.

A Pen is Mightier than a Sword
Start a blog dedicated to real estate. Take SEO help to rank. In fact, there is not a great need for SEO work, if you’re wired to a network of professionals in the same field. Nevertheless, technicalities and authentic information do matter and the reader may find it pleasing to know everything on a single web page. You can also earn through your blog by placing ads on it.

Organize Fairs/Events
If you’re a large real estate firm, you may not need sponsors to help you organize a great business fair or property exhibitions. In fact, a large number of firms and newspapers will automatically help you to make the program a grand success. In the property exhibition, you can make models of all the properties you’re trying to sell. Meet some marketing professionals to know the creativity you can show in presenting information to people. Don’t forget to distribute pamphlets, business cards, and post ads in local newspapers regarding the property exhibition. Through the contacts you have built, invite a popular figure from the real estate market to inaugurate the function.

Billboards Do Strike the Minds
Every time I’m outside on the roads, I happen to carefully notice various billboard advertisements. Certainly billboard advertising is a great way to attract people. Though they may be distracting at times, even a glance at them, makes us remember any new ad or any new product launch. It is a creative way to make a place in the customers mind.

Creative For Sale Signs
Traditional advertising techniques like for-sale-signs may not be so popular now, but they do have a small, yet significant, role to play. Place for-sale signs on the gate or near a property, as it reminds people going through the route that the property is up for sale. You can be creative by putting your website or blog link on the sale sign, and can also give your professional contact number below it. Ensure these two things are readable on the sign board.

For large real estate firms, advertising properties is certainly a matter of millions in investment and they do that in style. For private owners or any independent real estate broker, even a small snippet in cable television or online classifieds are enough. The capital invested in real estate advertising can vary depending on who you are; a home owner or a real estate tycoon!

Ideas for Real Estate Marketing

download-20Real estate marketing, i.e., managing, buying, and selling in property business, is a lot simple than what most people think. Effective real estate marketing ideas need not be expensive or complicated. Simple, to the point ideas can also get you good business and eventually, good income. Armed with these ideas, you can easily obtain numerous leads and―more importantly―convert them to business.

By resorting to comprehensive marketing strategies, like running an expensive advertisement campaign or sponsoring events, a real estate professional can get his and his company’s name established in the market. While that in itself is one of the finest marketing ideas for real estate business, there do exist other ideas which can help you yield rich dividends in the long run. Let’s take a look at some of these ideas.

Using the Internet as a Platform

The realm of world wide web spans millions of households, so naturally, Internet has become by far the best marketing platform today. A joint study undertaken by search engine giant, Google, and the National Association of Realtors (NAR) revealed that 90 percent of people looking to buy their new homes search for prospective options online. In times like this, not having a website of your own is no short of a cardinal sin. When we talk of having your own website, it goes without saying that it should be designed and optimized in such a way that it has a strong web presence.

Then again, you should not restrict yourself to your website, but should also resort to social networking. It’s very difficult to establish a brand without taking the help of social media. You can use social networking websites, like Facebook, Twitter, Pinterest, and even YouTube to promote real estate business on the Internet. Facebook and Twitter are in fact the most used social networking websites on the world today, and therefore, you are bound to benefit from using them as a marketing platform.

Additionally, you can upload pictures of your projects on Pinterest and other similar photo-sharing websites, and videos on YouTube and other video-sharing websites to showcase them. You can also resort to websites, like Craigslist and ClassifiedsGiant, which host user-generated classified advertisements for free, to woo potential buyers. Having said that, you need to keep in mind that your presence in the cyberspace is of no worth if you are not interacting with users.

Media Exposure

Media exposure is in fact one of the best modes of any type of marketing, leave alone real estate marketing. But obviously, the best way to stay in limelight is to let your creativity loose and come up with innovative marketing strategies. You can take the help of local media to advertise your property. While that will help you reach your niche consumers, it will help buyers get a lucrative deal sitting at home.

Going a step further, you can write articles for the newspaper explaining the nuances of real estate business. If you do this, you will be deemed an expert in the field, and that will be a major boost for your business.

Organizing Events

Most of the people avoid one-on-one interaction with the real estate agent due to the fear of being subjected to high-pressure sales tactics. In such a scenario, organizing an event for the consumers can be of great help. With many people around, your potential buyer is less likely to feel that he is being subjected to high-pressure tactics. These events may include free home-buyer information workshops, weekend open house, etc. Basically, anything that brings the realtors and potential buyers face to face.

If you are to organize such events, you will have to be prepared well in advance. You will have to prepare marketing material, run advertisements about the event, and also make the necessary festive arrangements that will grab the buyers’ attention. The event should be interactive and informative. That you can cater the needs of a wide variety of consumers at a given point of time, is perhaps the biggest advantage of this marketing strategy. If properly planned and executed, it will also provide that much-needed media exposure.

Lastly, Some Free Publicity

Any publicity, they say, is good publicity, and it’s even better if it comes for free. There are some simple marketing ideas wherein you don’t have to spend anything at all. Word of mouth is perhaps the best example of this. You can spread the word in your family circle, among your friends, and even those with whom you have previously done business. In fact, staying on good terms with your previous customers is always wise, as they can bring in some effective leads for your business. In this case, however, a lot will depend on your reputation.

It is observed that successful marketing ideas are those which offer something to the consumer and allow him to relate with the service provider. The rules are no different when it comes to real estate marketing. Once you win your potential customer’s trust, he will respond to your offer with great enthusiasm.

Commercial Real Estate Leasing Guide

Commercial real estate lease is a contract that creates and defines the legal relationship between the landlord or lessor and the tenant or lessee. In exchange for payment of rent and other considerations, the landlord grants to the tenant the right to possession and use of all or part of the property, subject to certain terms and conditions, for a specified period of time. In most types of commercial real estate, leasing provides the bulk of revenues available to service the mortgage loan; thus, understanding and accurate evaluation of lease terms and conditions is crucial to underwriting a loan. Lease obligations often require post closing management by loan administrators as well.

There are two primary considerations from the investor’s perspective:
Poorly drafted leases can create economic problems for the borrowers, which may put at risk his or her ability to make loan payments.
If the investor takes the property back, he or she will have to live with the terms and conditions of the lease, unless provision is made that the investor has the option to terminate it. In most foreclosure situations, however, tenants paying rent are a valuable commodity.
The rules and regulations should be understood before leasing the property, and an agreement should be drafted. There are some items to be followed.
It must be perfectly defined and include all details of the parties of the lease, including the correctly-spelled full name of each party, the nature of the legal form, and the state of domicile for the partnership, or corporation. Individuals may sign for themselves, any general partner for a partnership, and the president or secretary for a corporation. If there is any question on a corporation, a copy of the resolution of the board of directors granting signing authority should be attached. If the signer is acting as an agent for a principal, written authority from that principal should be attached.
Demised premises should be precisely identified, in terms of building address, floor number, suite and store number, and area in square feet to be leased. A floor plan or drawing of the space in relation to the entire property is very helpful. Inadequate identification can invalidate the lease. The lease should also state whether parking rights are exclusive or nonexclusive, and whether specific parking spaces are designated for the tenant. For parking, separate charges should be noted by the reviewer.
The term of the lease should be stipulated, in years and odd months. Lease commencement and termination dates should be clearly stated, as well as the date on which the first rent payment is due. Any renewal options should also be noted.
The tenant should clearly understand exactly how the rent and contributions for expenses are to be paid, because there are considerable variances, even within a given market.
The lease should define a number of conditions for maintenance, utilities, and equipment. The tenant’s obligations related to repairs should be clear to ensure they maintain the space in good order. The tenant’s rights to alter the leased space must also be carefully defined.
If the landlord abates rent during restoration and agrees to restore it in a reasonable time, the tenant cannot cancel the lease or sue the landlord for a breach of the lease if the tenant’s space is damaged.
The lease should be clear that it is retained by the landlord. In the age of sometimes-unnecessary lawsuits, the landlord may be sued because of external environment problems beyond his control.
The rules and regulations of the building should be attached as an exhibit to the lease.

Real Estate Auction Tips

Real estate auctions have seen a dramatic growth in recent years, in the United States. The advantages that an auction has, like a quick and an efficient way of getting cheap properties, has made it a preferred mode of buying and selling real estate. According to 2004 data, land and agricultural real estate witnessed the fastest rate of growth in sale through auctions (14.7%), followed by residential and commercial real estate with a growth of 14.1% and 11.1% respectively.

Successful Bidding Tips

Research
Gather as much information as you can about the property you are interested in buying. For example, get specific information like the size, amenities, location, and the opening bid. Then, research the area in which the property is located. Find out about the benefits of living there and its drawbacks, and compare the prices in that location as compared to those in the other parts of the city or town. Also, look at properties similar to the one you are planning to buy. This will help you to evaluate the property against your needs, and also plan the bidding strategy.

Attend Local Auctions
Attending local auctions will help you to better understand the value of the property in that area, and will also provide you an idea of how an auction is conducted. Observe who all attend the event, and how they bid. You may be up against the same people when you plan to do so, and hence, knowing their bidding pattern may give you an edge.

Set your Budget
Real estate investments involve huge financial transactions. Hence, it is very important to arrange your budget well before the vendue date. If possible, set an uneven bidding limit. For example, instead of setting the limit at USD 610,000 keep it at USD 611,000. Sometimes, a bid higher by USD 500 might help you to outbid your fellow bidder and win the auction. While deciding on the budget, take into consideration extra costs like stamp duty, legal expenses, and the fees of realtors or other agents that you may employ to help you with the purchase.

Focus on the Legalities
It is best to be clear about legal issues in case of real estate. Try to read through all the paperwork related to the property. Get your attorney to go through the contract of sale. Contact the agent beforehand and get a copy of the related documentation. In case of any confusion, get the agent to clear your doubts. If possible, also get the building and pest inspections done for the property before the day of the auction.

Be a Confident Bidder
Although, most bidders shy away from being the first one to raise their voice, for an auctioneer, the person who starts with the bidding process always comes across as one who is genuinely interested in buying the property. Such a person has an edge over the others in case the property does not reach its estimated value through bidding. In case there is a possibility of negotiation, an auctioneer may always turn to those, he thinks are seriously interested. It is very important to verify that the contract for sale obtained by you, is the same one being used on the day of the vendue. Also, be careful about any recent changes in the contract.

Control your Bidding
Don’t get carried away with the process. Always be within the bidding limit you have set. There are instances when people feel emotionally attached to the property. In such a scenario, they may send their attorney or a family member to the auction, as they fear that they may get into a bidding war and well exceed their limit. If such a need arises, ensure that the person representing you has a clear understanding about the process and your priorities.

A confident demeanor goes a long way in sealing the deal, as it should be remembered that it is not just about the money, but also the approach and attitude of a bidder that can tilt the scale in his favor.

How to Sell Commercial Property

Selling a product is all about making a convincing case about its merits to potential buyers and creating marketing channels to bring buyers and sellers together. Commercial real estate sale requires systematic efforts on part of the seller to reach a wider set of potential buyers. Marketing is the key aspect that needs to be focused upon.

How to Sell

Selling anything is about matching supply with demand. You need to identify people and businesses that would be interested in buying a particular piece of commercial property, which you are selling. Here are some marketing ideas for you, which will definitely help you clinch a deal.

Do Your Homework
Making a sale is all about tapping the right sales channels and reaching your target group of buyers. Before you can sell, you need to do your share of homework and research. Firstly, study the property which you plan to sell. It may be a shop, office space, or a piece of land, which is ideally suited for a commercial complex. Make a list of pros for a buyer, who would buy it and also list out the cons. Consider the location and identify the niche businesses that could take advantage of such a commercial space.

If it’s a shop in a business district, would a fast food chain be interested in buying it or would a clothing brand prosper there? Thinking on these lines will help you decide your marketing strategy to reach niche buyers who would be interested in it. Make an information brochure with all the details about the property, including square footage, amenities, and the nearest landmarks to its location. Lastly, you need to research the market prices in the area, which will help you determine what would be a reasonable price for the property.

Advertise in Newspaper Classifieds
One of the best ways to get the word across, about your commercial property is to advertise in a newspaper. Provide all the vital details, along with the location details. Let the advertisement be well designed and have a catchy line like ‘Ideal Space For a Boutique’ or ‘Prime Location For a Fast Food Joint’. This advertisement will definitely get you some serious inquiries. Expect a lot of calls and arrange for somebody to take them for you.

Post Ads on Real Estate Portals
Another way of advertising your commercial property on sale is to post information about it on real estate portals that have a national and international exposure. Provide detailed information about the property site, along with photos, with contact details. This is bound to generate a lot of inquiries.

Publicize Through a Sales Billboard
One of the most conventional ways of advertising your property is to put a ‘For Sale’ billboard near it, which can catch the eyes of people visiting the area. You will be surprised to know how many properties have been sold through inquiries generated through simple billboards.

Create a Brochure and Pamphlets
If you want, you can even create brochures and pamphlets which can be mailed to prospective businesses who might be interested in them. This can net in a lot of potential buyers from niche businesses.

Find a Real Estate Agent
You always have the option of leaving the whole job of advertising and finding buyers to a real estate agent, who will do it for a commission. In case you don’t have the time or energy to go through the entire property advertising and follow-up campaign, agents can handle it all for you. They can handle all the paperwork involved in closing a deal. Research the track record of an agent before handing over your property to him for sale. You don’t want your time to be wasted.

It is good to have a clear idea about the price which you, as a seller have in mind, before you start negotiating with a potential buyer. Be decided on what your first selling price is going to be and how much are you willing to climb down if the buyer plays hardball. That is, be clear about the bargain price which you are willing to settle for. Bring your negotiating skills to the fore, be reasonable and close the deal on your terms.

I would suggest that you try selling the property on your own first and if you don’t find any suitable buyers after persistent effort, go to an agent. If you manage to sell it all by yourself, you can save on the commission fees that are normally paid to agents. The key to selling is persistence and using as many sales channels as you can to reach the target pool of buyers.

How Do Real Estate Auctions Work

Contrary to popular belief, real estate auctions are actually quite simple to carry out, and prove advantageous to the seller as well as the buyer. Until a few years ago, the only way to sell a home was through a foreclosure sale, and this was a very lengthy process and it also involved paying a large amount of commission (around 10% of the value of the home) to the real estate agent who carried out the sale. Auctions soon came into public notice, and have been growing at a steady rate ever since.

A home seller will find an auction useful because the process is very quick. Moreover, the popular misconception that an auctioned off home will sell for a very low price has slowly been eradicated as well. The seller can set a minimum price that he expects for the home and then invite bids, and in most cases he will be presented with a price that is far greater than what he expected in the first place. Additionally, the sales commission that needs to be paid to agents is also absent in this case, and the seller really does not have to do much more than simply be present at the auction, and at open houses for potential buyers to see the home.

Home buyers also find auctions beneficial for the same reason. The quickness with which a transaction can be completed is a major advantage, but this is often overshadowed by the fact that closing costs are very low for buying homes in this manner. Closing costs include the costs that need to be paid to the agent, and this is something that is absent in real estate auctions. The closing costs are also shared equally between the buyer and the seller, and this further reduces the amount of money that the buyer would have to contribute towards the closing cost of the transaction.

Working of a Real Estate Auction

It is important to remember that just because a home has been put up for auction, it does not mean that extremely high bids will fly in from every direction. These are unrealistic expectations, and the seller should simply expect a bid and a price around the minimum price that has been specified by him. This price is also referred to as the Comparable Market Value (CMV) sometimes.

Primarily there are 3 different types of auctions, and each of them have their own subtleties and details that an individual must look into. These are the Auction Without Reserve (or Absolute Auction), where there is no minimum bid amount set by the buyer; the Minimum Bid Auction; and the Reserve Auction (or Confirmed Bid Auction), where the minimum bid is not made public and bids are then invited from interested buyers. Since auction sales come under the category known as As-is sales, the seller will find that there is no risk with the nature of the buyers that arrive, there are no future contingencies to be met and the home will definitely be sold on the date of the auction itself. The buyer will also get a rapid sale with immediate effect, and will have to spend considerably lesser on closing costs and other details. It is also the responsibility of the buyer to ensure that the property is in good shape. This can only be achieved by inspecting the property with the help of a specialist. The buyer must also remember that his finances should be in order, because if his bid is accepted, he will have to make the payment pretty fast. Usually a hefty deposit sum is demanded by the seller, and the buyer must have this amount ready. If he backs out of the transaction at a later date, this deposit will be non-refundable.

Sellers have pretty easy access to auction specialists, either through the bank or from online sources, and it is pretty easy for them to set up the auction. The announcement of the auction date will have to be released well in advance, and potential buyers must also be given an opportunity to inspect the home on open days. In most cases, an auction is aimed towards a specific market segment with assured demand expected, so the auction specialist will handle the advertising processes to inform this market about the sale. In other special cases, the seller himself may function as a sales agent and thus save the money that he would be required to pay auction specialists. These are known as FSBO (For Sale By Owner) sales.

As already mentioned, a seller should not have unrealistic expectations from a home auction, unless he is selling a really hot property (for instance, an ocean facing property) or he is selling at a time when the industry is booming. Either way, learning all about buying and selling real estate at auctions is not a difficult task at all.

How to Invest in Real Estate

Don’t let the housing bubble burst deter you. The fact that there are so many properties to choose from right now and that too at relatively throw-away prices, buying a property might just be the perfect investment decision. As it is, one tends to hold a property for a longer period, so you can consider it from a retirement planning perspective as well. It may also be a good idea to invest in a newly-developing area, since the land can be purchased quite cheaply and the rent in these places will always go higher in the future.

The Good Old-Fashioned Way

Real estate investment can be done in two ways. If you have funds lying idle in your bank account, it may be a wise decision to buy a property using them. This way, you make a one-time expenditure and earn a rent over the period for which you hold the land. You can also sell it off later, if you think the price is right and you are earning a good-enough profit. The other, more riskier way is to get external real estate financing from banks. You can then rent it out to someone at a slightly higher price than what you pay as mortgage. On the flip side, if you are unable to find a tenant for your land, you run the risk of a dead investment and a mortgage.

Real Estate Investment Groups

Being a landlord has its share of problems. A tenant might default on payments or cause some damage to the property. In such a case, you can deduct it from their initial deposit, but fixing it is still your headache, right? Not, if you go for a real estate investment group.

A real estate investment group can be considered as the mutual fund amongst real estate investments. This group builds apartments or condos and then sells them to investors as rental properties. So, instead of taking a loan from a bank, you pay the mortgages to the group which takes care of all the maintenance issues. Of course, for this service, they may charge you a percentage of the rent you receive.

Real Estate Trading/Flipping

This type of investment is suitable for the adventurous among us. Trading or flipping is where an investor buys property in a low-priced area, but when the demand looks like it’s going to pick up. The intention is to resell it in the short term when the price goes up. He might not choose to wait for the best price, and might sell it when he feels that he has got a good return. This is a very risky proposition, due to market price fluctuations in the short term, and it is only advised if you have surplus funds in your account.

Remember, if made wisely, investment in real estate might just be the smartest thing you do in your lifetime.