Have you reached a point in life where you have come extra cash saved up? Perhaps your home is worth a lot more than you owe on it. Why not access that equity or use your savings to start making more profit than you get in bank interest? A great way to build a nest egg is through investing in real estate.
One of the first things you’ll need to determine is your risk profile. How comfortable are you with risk? This is important, because there are lots of different strategies for investing in real estate, and you need to choose one that doesn’t make you lose sleep at night.
For example, if you want to invest in real estate, but want to keep your risks to a minimum, you might choose to buy nice, tidy family homes in a good neighborhood and then rent them out. You’d borrow conservatively, and have every type of insurance possible to protect your investment.
If you’re willing to take on a higher level of risk, however, you might buy houses in a bad area in the belief that before too long it will become a good neighborhood and you’ll make a big profit. You could also buy houses in poor condition, do the work needed to fix them up, and hopefully profit that way.
There are plenty more strategies for investing in property, including development, flipping, buying foreclosures, assuming mortgages and more. All of these involve a level of risk, but many people have used these strategies to become wealthy. Some have even turned a part time interest in real estate investing into a full time career.
In the end, if you follow a strategy that you’re comfortable with, real estate investing can be a great way to become financially free. For most people the hardest part is taking the first step and getting started. Reality is, though, that nobody ever got wealthy by doing nothing. So take action today, even if it’s just buying a book or learning something about investing in property.
About the Author
If you want to find out more about real estate investing, click over to David’s site at http://www.makemoneyfromrealestate.com You can also get a free book and tips newsletter at http://www.makemoneyfromrealestate.com/Newsletter.html