Commerical REOs and Non Performing Notes-[No MBLs] in the USA Top 150 Markets
It’s ironic how the economy seems to be going up and down right? Well. not. It seems that it’s going almost going down, with just a few little blips of improvement along the way. When entering our career in real estate and Bank Finance and my sister, Valerie Adams in Corporate Marketing and Business, our mentors gave imparted investing advice that surpasses all. From my local Bank Financial Planning CFO, advice consisted of” If you can buy real estate of any kind, do it!” He would further add the belief that property always increased in value. But how does real estate investing work and is that true? Let’s look at some of the basics.
The first thing to understand about real estate investing is that there is a fixed amount of land available. After all, the earth is only so big. Thus, a lot of people believe that real estate will always increase in value, and while there is some logic to that, real estate can and does decrease in value. As to how real estate investing work, there are much similarities with any other type of investing. For example, you will do best when you buy at a low price and sell at slightly modest price; generally speaking. The trick is to know where you are on the curve of the pricing of any real estate that you are looking at.
Does Real Estate Investing Work?
You need to invest some time before you invest your money. You should look at the area where you are considering buying the real estate. How is, the city or neighborhood doing economically; what the demographics of the recent sales look like , and what exactly is the acquisition pricing associated with the property within the last 3 to 6 months are they in an upswing, or a downturn; what about surrounding property; what industries drive the local economy’ and are there any other fractures that could have an impact on real estate prices?
Of course, at best, you can ever only make an educated and calculated evaluation. Real estate,;vesting is still investing, which means there is some level of investment risk. The fact, the more convinced you are that a certain piece of real estate is a sure thing, the more cautious you should be. There is no sure thing.
With that being said, besides the occasional housing bubble, real estate tends to make a very sound investment. At the least, you will have something to show for it. Namely, it’s not just a piece of paper with representation of stock in the company, but rather a physical asset that will always have some value.
Perhaps, the right answer to, “how does real estate investing work?”. The answer; It works well, as long as you take the time to consider each purchase before you make it; and you get a mentor you who inject you into a system and knowledge.
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See you at the TOP!
Written by: Valerie Robinson, REI & CME & Valerie Adams, CMA., CME-Coach-Mentor
CONVERSION MARKETING EXPERTS, LLC
April 12, 2019