Questions on realestate

[victoria]

What are some good ways to invest in realestate?

The few that I am familiar with is:

- buying a home and renting it out

-Buying land cheap, having a house build there cheap(if possible) and selling

-And something dealing with property tax, which I want someone to explain to me what that is and how I go about that.

I am new to it, but very much interested in the various ways to invest.

V.

[ResaleBroker]

Don't forget "Rehabs" and "Land Contracts"

[victoria]

what are rehabs and land contracts?

[ResaleBroker]

what are rehabs and land contracts?

"Rehabs" are properties that you buy, fix up, and then resale.

With "Land Contracts" you sell the home on an installment contract however the buyer only gets "equitable" title until the note is paid in full.

You might also consider a "Lease Option."

[victoria]

-"Rehabs"--> You mean forclosure homes

-Leasing, when someone rents from you after you buy the property, I assume?

[ResaleBroker]

-"Rehabs"--> You mean forclosure homes

Not necessarily. The property can come from any source.

-Leasing, when someone rents from you after you buy the property, I assume?

A "Lease Option" is a lease agreement that contains an option giving the lessee the option to purchase the property within a specific period of time. The lessee pays for the option up front with the risk of losing the option money if he/she does not exercise the option within the specified time frame.

[Jnazareno]

-"Rehabs"--> You mean forclosure homes

-Leasing, when someone rents from you after you buy the property, I assume?

Fixer upper with some major work and contractor's special = Rehabs

[victoria]

oh ok thanks

[victoria]

I see thanks JN

[ultraviolet16]

With option contracts you can also buy the option to buy a home at a certain price for a certain time frame. for example, if you find a home for $100,000 you can buy the option to buy the house for that amount for another 6 months for say... $5,000. When that time is up you see the current value of the house is $120,000 so you excercise your purchased option to buy the property at $100,000. You can then sell the home for $120,000 and make 15k. If you see the value hasn't increased enough you don't have to excercise your option to buy, but you lose your $5,000. It's a risk. you look at job vacancies in areas, demand trends and certain things to determine potential, but over all, you, or a hired expert makes the recomendation.

also you can sell the house as you buy it through an assignee or something like that, i'm a bit confused about that, can someone explain that on this thread?

And also, another good investment vehicle is a Real Estate Investment Trust (REIT). They are major real estate companies that focus on aquiring income producing properties such as hotels, shopping malls, and shopping centers of all sorts. [I'm a bit fuzzy on this part still but I think this is how it works] you buy shares with that trust and every year you get profits [(90%-95%)+ by law] based on your shares and your shares also increase in value as property value increases. For example there is a REIT called equity one that focuses on grocery store shopping centers that I am seriously looking into right now. I think with the present rate at which new neighborhoods are being built (atleast what i've seen around FL) people need food.. hehe.. so I think it's a good idea. anyone else think so?

sorry to make the post so long, hope it helps!