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Investing in Real Estate For Solid Portfolio Growth

By Edited Apr 14, 2016 0 1

If you ever wondered which form of investing was the oldest on record, there's no doubt about it, it would be investing in real estate. This is a form of investing that has been around for thousands of years. In ancient times, a person could obtain a tract of land, clear it and then either farm it or sell it for a profit. The more land you had the wealthier you were considered to be. Making land improvements is a technique that has been used over and over throughout history. It has been done by irrigating dry land, turning forests into farmland and even draining lakes for the fertile soil underneath. Really, the only thing that's different today is that we use heavy machinery to do the work instead of doing it by hand.

Taking a tract of land and making improvements to it is only one way that a person can invest in real estate. Another technique involves investing in commercial real estate. This has become a very popular technique throughout the years. This technique simply involved buying a tract of land with a building already on it and then renting the building space out to tenants. You earn money with this very simple strategy from the monthly rental receipts you get each month from your tenants. Most investors use this money to pay down the real estate's mortgage while the property slowly but surely increases in value as the years pass by. Eventually the land will be completed paid for and then owner can then either choose to sell the real estate for a large profit or keep it and continue to rent it out for profit.

Residential real estate is another great form of property you can invest in. A lot of people do this by purchasing duplexes, triplexes or even single family homes to rent out. Duplexes are often the easiest property to get into this form of investing. Duplexes are usually (relatively) inexpensive and you don't have to worry about losing all of your income if just one tenant moves out. There are others who use this as a way to essentially live for free. For example, some people will purchase a duplex and live in one side while they rent out the other side. The profit from the monthly rent is then used to pay the mortgage.

So, what do you do if you want to learn about this exciting form of investing? Thankfully, you don't need to take a course or even go to school to learn the ropes. There are, of course, real estate training programs in each state that qualify you to be a real estate agent, but for our purposes, they aren't necessary at all. If you are solely interested in real estate as a form of investment, your local library or bookstore should have all of the information you need to make it work.

Investing in real estate is a great way to slowly but surely build wealth. Even though it's been around for hundreds of years, it's something that still makes a lot of sense today.



Aug 27, 2011 12:44pm
Very helpful tips on investing real estate....
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