Real Estate Investment, Real Estate Investing

Real estate investment involves the dedication of funds to property with an objective to generate income through rental or lease and to accomplish capital appreciation. Actual estate refers to immovable property, such as land, and everything else that's permanently attached to it, such as buildings. When a person acquires actual estate, s/he also acquires a set of rights, including possession, control and transfer rights.
Understanding actual estate investment is crucial because it usually involves a substantial investment and a long-term one. Moreover , the actual estate market can be unpredictable. This is particularly important when one goes beyond purchasing a home to actually 'investing' in actual estate. There's various ways in which an investor can participate in the actual estate market.
Actual Estate Investment: Rental
One can opt for actual estate investment with an objective to rent the property out to a tenant. The owner (landlord) earns a continuous stream of rent from the tenant, but is responsible for paying the mortgage, taxes and any costs associated with maintaining the property. The owner also benefits from capital appreciation (a rise in the worth of the property over time). The owner runs the risk of not finding a tenant and could suffer negative every month money flows, with mortgage payments and maintenance expenses still to be borne. As compared to owning stocks and bonds, rental actual estate requires a significant amount time and hard work to be devoted by the owner.
Actual Estate Investment Groups
Actual estate investment groups are similar to tiny mutual funds. They're set up for rental properties. While an investor may own one or more units, a professionally managed company acquires, builds, maintains and lets out all the units on the properties in exchange for a percentage of the every month rent.
Actual Estate Trading
Actual estate traders hold properties for only a short span of time (less than three months), aiming to sell them at a profit. This method is called flipping properties. Investors objective at purchasing significantly undervalued or hot properties. Such owners may or may not invest funds into improving the property before putting it back on sale. A bear market could lead to substantial losses for a actual estate trader, since the investment is large.
Resources
Listings of available REO properties are a great beginning point to exploring available actual estate investment opportunities.
Actual Estate Investment Trusts (REITs)
A actual estate investment trust (REIT) is a corporation that invests in actual estate. REITs trade on major exchanges. A REIT makes use of investors' funds to acquire and operate properties.
The benefits of
REITs are:
REITs provide regular income.
Investors gain exposure to non-residential investments (like malls and office buildings).
REITs are highly liquid.
REITs are required by law to distribute 90% of their taxable income in the type of dividends to shareholders.
Before making a choice regarding the kind of actual estate participation, an investor must evaluate his/her investment capacity and risk appetite.