What is Real Estate Investing?

The question, "What is real estate investing?" cannot be responded without considering first, it's textbook definition and then it's theoretical definition.

The Academic Definition

Real estate has been defined as land (or immobile property) along with anything eternally affixed to the land such as buildings, and investment is the act of using the money to buy property for the sole purpose of holding or leasing for income. It is safe to say then (combining both descriptions) that real estate investing includes the acquisition of real estate (or investment in real estate) for resolutions of generating income, making a profit, and obtaining wealth. You can visit http://www.yanrealty.com/west-covina-real-estate-agent/ to hire real estate agents to in West Covina.

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The Conceptual Definition

  1. Leverage In contrast to stock investments (which generally need more equity from the investor), it is possible to leverage a real estate investment (deeply). With a real estate investment, you can use other folks' money to magnify your rate of return and control a much bigger investment otherwise not possible.
  2. Tax Shelter Real estate investing provides tax welfares. There are yields on annual after-tax cash flows, equity buildup through appreciation of the asset, and cash flow after tax upon sale.
  3. Non-Monetary Returns Real estate investment offers pride of ownership, the security that you control ownership, and portfolio divergence. You can click here to read more benefits of real estate investments.

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How to Become a Real Estate Investor

  1. Develop a real estate investment goal. What do you want to attain, and by when do you want to attain it? What rate of return do you expect to want to obtain on money you pull out of your home or bank account to buy an investment property given the risk?
  2. Learn what returns you should look for, and how to compute them. You cannot thrive in music unless you can read music. Invest in a good real estate investing course or real estate investment software where you can learn how to run the returns and calculate the formulations.

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