Don’t put your Real Estate Investing eggs in one basket!

March 23, 2008

Like me , I am sure everyone agrees that if they see one more chocolate bunny before next year, it will be too soon.

Yesterday, I mentioned a friend, who has made his fortune in real estate and teaches others his secrets.

Here are 3 of his real estate investing secrets explained.

1) Make sure that your primary residence is not an investment; it is primarily a place for your family to live. A home offers tax benefits. If financed correctly, it is a hedge against inflation (more on this another day soon) and can provide some long term capital appreciation; but an investment last. Thus you are less affected to short term fluctuations in the market.

2) A rental property must be rented or it can be a very expensive, thus not very profitable investment. He teaches people to own rental properties in places where there are young professionals, a college town, or in an apartment community where there is an on-site leasing and management office with a excellent “low vacancy” record. Some communities are even offering some form of rent guarantee. Don’t buy a large home, with a big mortgage, to rent to families. These can be difficult to rent, and costly if vacant.

3) Speculative real estate Investing has to be done prudently, with a different type of real estate than completed single family homes in your “backyard”. Commercial real estate (you don’t have to be rich) with tenants in a great place to start that will keep you diversified and offers income to pay for your monthly mortgage.

Real Estate can be enriching in more ways than one; but it must be done in a diversified manner and must be financed correctly or what goes up can come down much faster.

For real estate investments in Phoenix , Scottsdale, Tempe, Fountain Hills, and its surrounding Communities like Desert Ridge, and Desert Mountain please call.

————————————————————————————————-Copyright © 2008 By James Wexler, All Rights Reserved. *Don’t put your Phoenix Real Estate Investing eggs in one basket!*

Contact James Wexler (480) 221-8080 for Internet Marketing private Coaching and Consulting.

Related Posts

Written by James Wexler · Filed Under Articles, Buyers 

Comments

Got something to say?