There are a number
of ways to acquire property without risk. We
list a number of the most important:
* Restrict the
size of the investment and the amount of
indebtedness.
* Sell at a profit a part of what you have purchased.
* Buy only such
property as you are willing and able to hold for
an indefinite period.
* Make an estimate of gain or loss probabilities before you buy.
* Withstand all
pressure of people who try to induce you to sell
at a loss.
* Increase desirability of the property before you sell.
* Observe the effects
of local improvements, movements and
activity. Develop ability to buy
Real Estate with the greatest
potential for the future. The successful
buyers of Real Estate
have a good knowledge of facts and
laws, learned under a great
variety of circumstances. They realize
the importance of making
investigations. They know economics
and business conditions
locally and nationally. They study
trends, growth areas and
property utilization. They have
a correct idea of their own
personal finance limitations. They
have a high degree of
interest, judgement and imagination.
* Adaptability,
fortitude and a high degree of resourcefulness
are other attributes to successful
Real Estate investing. Desire
for ownership and not being adverse
to going into debt are very
important.
* If a property
appears to be greatly under priced never quibble
over price. List all the significant
advantages and disadvantages
of each property. There should be
some reasonably outstanding
features that will generate enthusiasm.
Decide to buy on the
merits of the property, not because
someone is suggestive. If you
lose a good deal, a better one will
come along. Resist
speculation fervor.
* If you are buying
a property to hold for a long time, compute
the taxes, interest, insurance,
etc. You will have to pay while
it is in your possession.
* Realize that
when the market is good and the price is rising
you can always buy, but when the
market is going down it is
difficult to sell. Don't sell too
quickly and do not over-extend
yourself.
* Realize that
increasing value of improved (homes buildings,
etc) result mainly from increasing
population.
* if you are interested
in making money investing in REal Estate
foreclosures, the best way to succeed
is to develop a financial
plan based on your tax bracket so
that you will know when to sell
off which properties and when to
keep them for future increase in
value. You will need to recognize
when there is "concealed"
equity in a property which is not
visible to other investors.
Look for homes from 5 to 20 years
old with potential net profits
of no less than $4,000 when you
convert them.
* Know the laws
in your state pertaining to the foreclosure
process. Look over all the small
print in contracts. Most of them
favor the seller. If you are the
buyer, have the contract changed
to fit your requirements.
* Be careful at
auctions so that you don't get carried away with
the bidding; determine in advance
the top you will go and stay
with it.
* Strive to locate
and purchasee distressed property before
foreclosure proceedings start and
you can generally assume
conventional loans under the same
circumstances as presently
exist.
* When you have
purchased the property in a slow Real Estate
market, it is easier to sell since
you have probably acquired it
at several thousands below the current
market value.
* It can be good
policy some of your property and keep some. For
example, if you can sell one-half
of the property and get mos of
your money back, you will be able
to retain the balance for
future enhancement and use the proceeds
of that portion sold to
speculate in other properties.
* Speculation is
not all profit. As time goes by taxes and
assessments increase; some properties
may have to be sold to pay
for such increases.
* The greatest
deterrent to a person buying Real Estate is the
fear of making a mistake. Of course
a person can't afford to make
many mistakes in Real Estate speculation
just as in any other
kind of business.
* During a period
of inflation, land is the best investment.
During a recession or depression,
land is the worst investment.
If a recession appears imminent
sell, even if on a contract for
a reasonable dow payment and monthly
payment on the balance. You
will have an income and also have
the property as collateral. You
can be sure that as long as general
economic conditions are
good, the value of well selected
Real Estate will increase.
* Populations increase
by birth rate and by influx. Check to
determine the past circumstances
of the local economy, the demand
for public services and the future
growth potential. The fact
that a city has increased in population
is not significant in
itself. Perhaps there has been an
annexation of adjacent areas.
Yes! By comparing,
learning and using good common sense you can
profit in Real Estate regardless
of recession, depression,
interest rates, or inflation!...And
without excessive risk!