Real Estate Investing 101

Real estate Investing 101

Different from personal property, a real estate is legally defined as a land along with all the permanent attachments like the building upon it, the fence around it or fixtures, permanently attached to it. To rent out ,with intent to earn money, such a possession or authorize someone legally to benefit from it, in any manner against some mutually agreed compensation, is Real estate Investing 101.

Due diligence; a prerequisite

Proverbially, money begets money, but in this era of recessionary economy it is not necessarily and always like that. Real estate investment 101, also means to put your money to work and earn for you more money. Unless due diligence is shown prior to and during the conduct of real estate investing 101, the outcome, not only may not be as desired but also may be very devastating too.

Onus rests with the buyer

It has to be clearly born in mind that in case of any defect, disadvantage, loss or vulnerability to loss, after buying a real estate is not a matter of concern or responsibility of the seller, and the onus of proof in case of a conflict, legally rests with the buyer ,once the deal between the two has been struck and signed.

A word of caution

Sometimes, quite a few careless investors have suffered lot of financial hardship, having been even bankrupt on this account. Purpose of this warning note, is not to put you off but to urge you to be well prepared beforehand
Types of Real Estate Investing 101

There are different modes of Real estate investing and some are as following

• Hose rent Investment is renting out a house, usually against an agreed rent with or without some down payment in accordance with the legal agreement. This type of investment is suitable for seniors or retired people who intend to develop a regular source of income from their real estate.
• Industrial Investment means renting out to industry for use as stores, garages etc.
• Commercial Investment is renting out for office use or academic institution etc.
• Retail outlets: Real Estate may also be rented out for use as retail outlets where permissible under law.
• REIT stands for real Estate Investment Trust and it is a sort of Real Estate to Real Estate deal.

Something you must avoid

One thing that must be avoided in Real Estate Investing, is to purchase a real estate in your own name as it may hurt you financially very badly in case something goes wrong on account of some unseen factor. It is always advisable to do so under the name of LLC; Limited Liability Company and under proper legal advice.

One thing you must do

It is very important to be clear to yourself regarding your objectives. A confused start up, instead of bringing you what you aim at, may end up in a chaos and a quagmire. Survey, very many times before you make a decision to buy.