A recent television show about investing featured a panel of expert investors from different fields. The ones that caught my attention were from the fields of real estate and stock market investing. And they were sharing information with the studio audience about their secrets to making money. However, there were a few items that needed further clarification about the true potential of real estate investing, since they were seemingly swept aside on the program. And these lessons are helpful for anyone making a decision about getting into the real estate market with financial gain in mind.

Before the stock market guru enthusiastically persuaded the audience to put their money into individual stocks, he stated that the Real Estate Market was in disarray and that even in good years Real Estate would only appreciate at single digit percentages. While the latter is often true, I was surprised at how blatantly this gentleman overlooked the other key aspects of a Real Estate investment and wondered if the general public saw the benefits as narrowly as this man. There are at least four key issues worth mentioning in regards to that perspective. And while there are several ways to invest in Real Estate, this particular rebuttal will list some of the advantages of owning rental property.

1. ?The Buy?- As is the case with any investment, the goal is to buy low and sell high. Today?s Real Estate market offers plenty of opportunities for a savvy consumer to purchase a home for 80 to 85 cents on the dollar. My mentor agent of The Williams Home Team in Rochester MN always says, ?You don?t make money when you sell a house, you make money when you buy it!?

2. Cash Flow ? If the rental income on your property is greater than your mortgage, which is often the goal, than you are making additional income. It is important to note that this income has not yet been taxed.

3. Principal Reduction ? Allowing someone else to make the payments on your house is a beautiful thing. Just like the mortgage on your personal residence your investment mortgage is going to be amortized with most of the interest on the front end of the loan. Time is very powerful in this regard. And you can keep your money in other investments, earning you interest over the long run.

4. Tax Savings ? Your mortgage interest as well as all operating expenses and improvements to your property are tax deductible. This is also a great savings over time.

When investing in stocks, the industry goal is to beat the benchmark of the market as a whole, which appreciates at an average rate of 10-12%. While the aforementioned gentleman was accurate in saying that typical Real Estate markets only appreciate at single digit percentages, when taking into consideration these overlooked aspects one can often times see far greater returns. Talking with a financial advisor or real estate agent may also prove beneficial in your endeavor to secure a financially viable real estate investment property.

Copyright ? Tim Williams

Tags: Additional Income, Clarification, Disarray, Expert Investors, Financial Gain, Investing 101, Market Guru, Owning Rental Property, Percentages, Principal Reduction, Real Estate Investment, Rebuttal, Rochester Mn, S Real Estate, Savvy Consumer, Several Ways, Stock Market Investing, Studio Audience, Television Show, Tim Williams Real Estate Investing: Flipping Properties April 17, 2009 by Kenny Santos   Filed under Real Estate Investing Leave a Comment A lot of people these days are preaching about the buying and holding method of gaining wealth with real estate. There indeed may come a time in your life or business when you?ll want to hang on to a piece of property, although you?ll only be interested in keeping certain types of property. If you?re just starting out, flipping a house may be an ideal way to get started. Basically, there are three ways that you can flip a house, although each one has its own terms, motivation, and type of property. The first method is known as retailing. What this means, is that you buy a house in bad shape, do the repairs to fix it up, then turn around and sell it. There are a variety of houses in need of repairs out there, and several ways that you can quickly flip a house to net profit. All you need to know are the techniques that will get you the most money in the least amount of time. The second way you can flip a house is though wholesaling. Wholesaling involves finding a home for sale then flipping it to an investor for a fast, yet small profit. To do this, you?ll need to know the real estate investors in your area, the types of homes that flip the best, and how to fund your property so you can flip it to them. If you live in a big area or a city, you?ll find that using the wholesaling method of flipping houses is actually easier to accomplish. The third way to flip a house is by assigning the purchase. Using this method, you?ll commit to buy the house. Instead of closing the deal yourself, you?ll assign it to a real estate investor - of course for a small fee. The investor will take the contract over and close the purchase themselves - flipping the house. This can be very profitable, especially if you invest in the right home. You don?t need to have your contract worded any special way to be legal, although you will need to determine the assignment fee. If you?re looking to break into the real estate market and make big bucks, you?ll need to learn all about flipping houses. Flipping houses is very profitable, especially once you have learned the basics. The first and third methods are the best, although they will both take quite a bit of work on your part. Restoring homes isn?t easy, and you?ll need to have a team qualified to handle any repairs. Assigning the purchase may be difficult when you first start out, although it will get easier with time. If you stay at it and do your best to make a profit - you?ll be an expert at flipping homes in no time at all. About the Author: Mark Estates writes for multiple real estate and foreclosure investing porgrams such as SharkBaitSoftware.com. Tags: Amount Of Time, Bad Shape, Break, Closing The Deal, Finding A Home, Flipping A House, Flipping Houses, Flipping Properties, Investing, Lot, Money, Motivation, Net Profit, Real Estate Investor, Real Estate Investors, Real Estate Market, Several Ways, Three Ways, What This Means « Previous Page eNews & Updates Sign up to receive breaking news as well as receive other site updates! 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