Investing In Real Estate - Can You Really Buy a Home With No Money Down?
Source: Courtney Park - United States
If you've got an entrepreneurial spirit, have some time and extra cash, why not think about investing in real estate as you've got the potential to earn hundreds of thousands, if not millions of dollars a year simply by turning "flipping" homes over.
This is particularly true these days, which is still very much a reality in this country even amidst all the talk about the real estate bubble.
Investing in real estate has become a booming business for people of all backgrounds and start-up capital. Why? Because being a real estate investor is not only easy, but it's rewarding to see your hard work pay off so quickly when you make a sale with little or no money down.
Just on September 30th, there was a special segment on ABC News, 20/20 about the latest real estate boom in America. Real estate boom really has people flipping for Miami and all around the country, particularly in cities like Chicago, Boston, New York and LA. Click here to read more on ABCNews.com
Some Important Tips In Getting The Most Out Of Your Real Estate Investment Opportunity
* If you're low on capital money to invest in real estate, form a partnership with friends, family or colleagues. File a business name with the State Corporation Commission and register with your local city to become a legitimate tax-paying entity. Once the group of you is able to pull funds together, put them into a bank account under your business name. You can then approach the bank for a bank loan for your business, increasing your chances of getting funding.
Creating a legitimate business not only can act as a liability shelter for you, should your venture prove to be non-profitable, but it helps to create a friendly working relationship with your new colleagues into which everyone gets equal return on their own financial contributions.
* If you have capital to spend, invest in a tax lien. A tax lien is, essentially, purchasing someone's foreclosed home, which the government retains control over until taxes are paid. As a real estate investor, you will most likely receive a substantial return on your money invested in a tax lien because most homes that have been seized by delinquent tax payers are eventually turned over to the individual or entity that has purchased the tax lien.
To find out about tax liens in your area, contact your local government for a list of tax lien sales and foreclosed homes. Many states also have tax lien sale information available online through subscription-based companies or through government auction houses.
* You don't have to go for a killing your first year of being a real estate investor. In fact, most people start small. Begin by using the available money that you have to make a down payment on a modest home in an up-and-coming area. Many people purchase homes that are "fixer-uppers" and they get started by doing all of the work on their own.
When the economy is booming, as it has been for the past decade, then you can fix your home up and turn it around in a relatively short amount of time for a moderate profit. You can avoid paying capitol gains taxes on the cost of renovations and improvement, so keep all receipts for work done.
If after your first purchase, you find that you are indeed serious about investing the time and money into becoming a real estate investor, then use the money from the sale of that first house into purchasing another home. From the time of the sale, you have 180 days to invest the money into a new home before you will have to pay capitol gains taxes in what's known as Exchange 1031 Tax Deferred Benefits on the money you gained from the sale.
There are many resources and lending agencies prepared to help individuals interested in establishing a career as a real estate investor, Furthermore, many cities incentive the revitalization of older neighborhoods by catering to the convenience of real estate investors. After all, everyone enjoys seeing property bought and sold quickly within a community, for it signifies the health of the area. Call your local government to find out if there are specific tax advantages in place to help real estate investors and home-based businesses alike to maximize the return on their money.
About the Author
© Copyright Courtney Park, All Rights Reserved.
About the Author: Courtney is owner of http://www.home-business-web.com For more information on home-based business ideas, including how to profit from Tax Liens, check out http://www.home-business-web.com/part-time-business-ideas.html and http://www.home-business-web.com/tax-lien-certificate.html
Next: Acquiring Properties in Foreclosure and Pre-Foreclosure
Previous: Save Big Time Buying A Foreclosure
|
