General information about
Investing for beginners
University of Chicago
in hyde park real estate
Real Estate Investing
It is a proven fact that investing in real estate can be a lucrative
endeavor ‚€“ if you follow guidelines and methods that work. There are
several ways to invest in real estate, and which way you choose to
invest depends on many factors, such as your financial situation, how much
time you want to put into your real estate investments, and whether or
not it will be your only source of income or a source of extra income.
Some strategic research must also go into investing in real estate if
you want to be sure that you are taking advantage of any market trends
and area statistics.
One way of investing in real estate is to simply buy homes and resell
them. For many investors, this means buying what are called
fixer-uppers�, which are houses that are usually in some state of disrepair.
When you buy this type of home, you usually pay much less than the
average market value for that area, but you do have to put some money into
it in order to get it in a condition where it can be resold at a
profit. The thing that you have to remember when buying homes such as these
is that there is more to reselling for a profit than just making the
home look nice and work well again. If you buy a fixer-upper in a
neighborhood where most of the homes are in a state of disrepair, then no
matter how nice you make your investment look you will still probably have
a difficult time selling it - especially for a profit. This type of
investing in real estate takes some careful scrutiny; the fixer-upper
that you buy must be in a neighborhood and area that attracts buyers. For
this reason, investing in real estate in this manner can take a lot of
research and careful planning.
Buying fixer-uppers is usually a way to get a return on your
investments fairly quickly. You buy the home, you fix it up, and then you sell
it. For other people, investing in real estate is more of a long-range
prospect. You buy a home or some land and then wait for a few years
while prices go up, and then sell it for a profit. When you invest in
real estate in this manner, you have to take into account how much it
will cost you to keep the property while you are waiting, and you need to
decide if you will be using it while you are waiting to sell it. For
this reason, many long-range investors choose to only buy properties
that do not have dwellings on them.
Another way of investing in real estate is to buy homes, condos,
apartment buildings, or ‚€œplexes‚€� (duplexes, triplexes, etc.) and then
rent them out. This, of course, takes a large amount of investment
capital, as well as working capital for general upkeep of the dwellings,
advertising for tenants, and even court proceedings when a tenant must be
evicted. Owning rental property takes a real working knowledge of
business and property management, and many people who will be doing this
type of investing in real estate take college business courses to prepare
themselves. Many people who own a large amount of rental property,
such as those who own apartment complexes, will hire someone to manage the
property and take care of details like interviewing prospective tenants
and hiring repair people when work needs to be done on dwellings.
Investing in real estate can be done on a much larger scale, such as
buying a large area of property and building homes or businesses on them.
This type of investing in real estate is usually done by development
companies that work with several investors rather than only by individual