Pawan Favourite's blog: Nov 25, 2011

We are all thinking about it and some of us are actually taking action and getting their hands on real estate is investment property. NY Stock Exchange desirable returns the more people are starting with real estate investment does not produce.

For most of us the obvious choice properties are single family homes. Although without a home owner can invest in real estate, most people feel they have made to follow while buying your own home. This is familiar ground to a real estate deal of the learning curve is very thin.

Of course there is a flaw with this approach. Competition is fierce and markets where investors are driving the cost of artificial properties while completely discouraging first time home buyers are. If this is the case, the real estate bubble burst just a matter of time.

How do you avoid these situations and still successfully invest in real estate? You get ahead of the competition and the bad times to invest in real estate as well as ready? The only answer I have commercial real estate.

Commercial real estate could you ask? Commercial real estate local real estate market is a solid investment in good times and bad. Commercial real estate I'm talking about multi-unit apartment buildings.

Yes, you do not have to become a landlord, you do not work. You are not the owner and manager of apartment building. Building owner and managing costs is part of your expenses will be covered by rental income.

Apartment buildings are considered commercial real estate if there are 5 or more units. To work the numbers to make either of you should consider several small apartment buildings or should you opt for large buildings. The cost to income ratio on a positive cash flow will take. The owner of rental properties is all about positive cash flow.

With investing in single-family homes is easy to achieve positive cash flow. Even if your rental income does not cover 100% of your expenses, home appreciation will contribute to positive cash flow. Commercial real estate with the rules are different.

Property value is based on the rental income. A commercial real estate rental income needed to find a way to increase value to increase. This is calculated on the formula would be too much for this short article. Some very useful books I have listed where you can find all the information.

What is the advantage of investing in commercial real estate? Financing of commercial real estate financing from a single family home is completely different.Commercial real estate financing properties producing positive cash flow and ability to cover the cost of financing is based.

All information about commercial real estate you want to dive to get out there and after reading deals. Not so fast. First, you as much as possible need to know about real estate. Are working with commercial real estate professionals.Second, a commercial real estate lender to lend you money if you have any experience in real estate investing may not show at least a little bit.

What is the answer? Get out there and one or two single-family home in its deals. If you start off with huge profits it does not matter. Most newbie investors are losing money anyway on your first deal. Deals with single family home you can manage to show positive cash flow, you are ahead of the pack.

My advice, in a decent neighborhood to buy a small single-family home and rent it immediately. At least keep it out of your pocket and you rental income will cover your monthly expenses. Bonus, you as an investor and has experience as a landlord.

Here's an observation I made during my real estate investing career. Most people analyze, learn, discuss and like some more analysis. If they never really found a real estate deal. They love to talk about investing in real estate, but never do it themselves.

My approach was simple for real estate investment.

- I bought some books about real estate investing.

- I read every one of them.

- I want to start with how I put a simple plan.

- I started looking for properties.

- My first investment property 30 days after I bought my first book to start reading.

- With all the qualities that I still have positive cash flow.

What is my point? You get out there and practice what you have learned. Practical experience in the real estate business is only valid credential. After a couple of deals under your belt, you get out there and start looking at commercial real estate and even experienced investors impressed with your knowledge. Because you have experienced it yourself and you know what you're talking about.

Book reference for commercial real estate investment:

Gary W. Eldred, PhD: "Make Money With Small Income Properties

: Jack Cummings "Real Estate Financing and Investment Manual"

Pawan Favourite's blog

Friday, November 25, 2011

Beat the Crowd When Investing in Real Estate

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