Investing in Real Estate: Effective Strategies in Real Estate Investing by Thomas Smith

Chapter One: Real Estate Investments
Many people, over the last decade, in particular, have been able to increase
their net worth considerably, indulge themselves in dreams and pleasures
without going broke, reach and exceed financial goals and even retire as
early as they wish to. Most of these became a reality for them just because
they decided to look into the investment opportunities in real estate and
delve into it. As we speak, real estate investment is top on the list of most
worthwhile and credible routes to financial independence. And, the most
incredible thing about it is that a lot of these people have achieved this with
a little amount of money, or nothing at all to start with. Although the
economic factors of a particular country or zone influence its market and
demand level, and it is not the path to easy riches, real estate investment
defies geography and can be a useful wealth creation path for anyone
irrespective of where they reside or what they do. Its 'staying power' makes
it stand out from other investment options in vogue today.
Another status quo that it defies is that during economic relapse, the
demand from buyers may reduce, and the packages available will always
present better opportunities. So instead, those that invest in real estate at
that moment have a better appreciating opportunity. At this point, it may
just be safe to say that having knowledge of the market fluctuation and
capitalizing on them is the secret to flourishing in real estate investments.
Because people will always have the need to buy or lease properties, you'll
never be at loss of buyers as an investor because you have the 'good' they
demand.
In this chapter, we're going to examine the benefits of real estate, why the
industry is in vogue in terms of investment at the moment, and the many
benefits you stand to gain from indulging it.

The Many Benefits of Real Estate
There's a pool of things you can do with your investment in real estate.
While you may not realize some of them, the opportunities and benefits that
come with it are unlimited. Here are some of them:
1. Great Appreciation Advantage
For more emphasis, this is usually regarded as one of the most popular and
major benefits of real estate investment. Without even doing anything to
your property, it characteristically appreciates by a four to five percent rate
yearly. This means that you don't bother to force appreciation by renovating
or improving your properties in any way. You only allow it to appreciate as
the regular market grows. But it is possible that you push the appreciation
rate when you put in work that makes it even more valuable than when you
first acquired. So, it's possible that a family that acquired a home some ten
years ago (and renovates it periodically) can find the value double or triple
what they bought it for. If they give the property another ten to fifteen
years, they're looking at doubling what they have at the moment in equity.
2. Profit from Equity Buildup
Having one or more properties that increase in market value over time
builds your equity on them at the same time. It's a win-win situation
because you get profit on your property and can divert your equity buildup
as an additional investment in another area.
3. Running Your Own Business
Investment in real estate is a form of passive income/business. You still get
to work on your major job, whether full time or part-time. It doesn't divert
so much of your time and attention and gives you a chance for your regular
business according to your goals and schedules. Not all investment and
income options give this unique benefit.
4. Generating Useable Positive Cash Flow
The reason some people invest in real estate is for the sole reason of giving
them out on rent to other people. That's another major benefit because it

Investing in Real Estate: Effective Strategies in Real Estate Investing by Thomas Smith