Jeff Adams Said Real Estate Investing New Strategies

The real estate investing rules

Investing in real estate Industry, also directly or through funds or real estate investment trust all of the above can add much-needed diversification to your investment range. Real estate is a unique investment, so you can't apply the same rules as you do to investing in stocks.

An exit strategy

Real estate strategies include buying rental properties and becoming a property-owner as well as flipping properties, then hopefully earning a considerable profit upon their sale, writes Joel Cone, a business and real estate writer. Like any speculation, real estate investing requires an action plan, he writes. Some real estate investors have found success with three-year lease options, for example.

Join and don't attend

Real estate investors often become successful with guidance from other investors. That's one reason it can be smart for novices to get involved in investment clubs. But be careful not to waste money on unnecessary boot camps or training courses, Cone writes. Browse a local bookstore for information on real estate investing, and avoid getting sucked into expensive seminars and camps.

Type of real estate investing.

If investing straight in real estate, investors should choose a specific target market and study it powerfully, Cone writes. Finally, investors should take small, common-sense steps daily toward achieve that goal, such as talking with sellers, owners and local real estate professionals.

Very different from investing in a REIT

If you are debate between investing in real estate straight and buying into a REIT or real estate finance, consider the tax penalty. For many investors, tax deduction and capital gains taxes are vital to their expected return on real estate investments.

Maintenance approach.

Mutual funds and exchange-traded funds can offer a lower-cost way to spend in real estate, writes Barbara Fried berg, portfolio manager and consultant. She points to front line REIT Index ETF as an example of an inexpensive strategy for investing in real estate. In one fund, the investor accesses a range of property types, plus commercial malls, hotels and apartments ... If you are looking for income, REITs are required by law to pay out all earnings," Fried berg writes.

Does not really count your home.

It's attractive to look at your own home as an investment. However, property taxes, homeowner’s association fees, insurance and other costs offset approval in property values, Cleaver writes. You won't earn income from your home as you would from other investments. A real estate investment produces income or appreciates in worth after all costs are planned.