How to build a real estate empire
Real estate: the way to riches
Real estate is the area of finance that allows the largest accumulation of wealth during a relatively short period of time. The reason for that is that real estate has some advantages for the investor that do not happen in any other investment.
For example, if you invest in real estate, you automatically receive a number of tax reducing privileges, that do not happen for other types of investment. Since taxes amount for at least 30% of your annual expenditures, saving on taxes can make your investment much more solid and lucrative.
Even with the great real estate issues in the last few years, one can still use homes as a way of making money. If you are able to rent properties to residents, you will be able to make money if the market is going up or down --- it really doesn't matter.
Books on Real Estate
Types of real estate investment
There are several categories of real estate investment. They are dictated by the amount of money you have available to invest, as well as your personal preferences.
It is important to become familiar with the types of investment because they can be used in different situations. For example, if you are interested in renting for new families, it is better to look for deals on condos. These are also pretty easy to maintain, and more affordable.
Also, throughout your investment career you will have the opportunity to use one way or another to invest. It is pretty much possible to start with small units, then move later to commercial properties, for example, once you have the required investment capital and market connections.
I list bellow some of the most common types of real state investment:
- Single family houses: this is the simplest and most common type of real estate investment. Families need houses to live, and they are everywhere. Wherever there are jobs, there you will find people that need homes. This is a good place to start investing, because it requires little specialized knowledge, and anyone can carry the duties of land lording for this type of real state.
- Condos: Multi-family housing is the second most common type of investment. You will need to be a little more investment-savvy however, since you need to analyze the conditions of the condo, how much return on your money you will get, and how to keep the operations of the business.
- Commercial real estate: this is a more sophisticated type of investment, but which is, however, inside the rich of most investors. Since business need space to grow and develop, real state is the best way of making money out of the growth in American businesses.