Real Estate Investing

Real Estate Investing Detail
Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage ) and is highly cash flow dependent. If these factors are not well understood and managed by the investor, real estate becomes a risky investment.
Real estate assets are typically very expensive in comparison to other widely-available investment instruments (such as stocks or bonds). Only rarely will real estate investors pay the entire amount of the purchase price of a property in cash. Usually, a large portion of the purchase price will be financed using some sort of financial instrument or debt, such as a mortgage loan collateralized by the property itself. The amount of the purchase price financed by debt is referred to as leverage.Some real estate investment organizations, such as real estate investment trusts (REITs) and some pension funds and Hedge funds, have large enough capital reserves and investment strategies to allow 100% equity in the properties that they purchase. This minimizes the risk which comes from leverage, but also limits potential ROI.

Real Estate Investing
Real Estate Investing
Real Estate Investing
Real Estate Investing
Real Estate Investing
Real Estate Investing
Real Estate Investing
Real Estate Investing
Real Estate Investing
Real Estate Investing
Real Estate Investing
Real Estate Investing

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