Real Estate Investment Strategies That Yield High Returns

Over the past decade, many people who were actively involved in real estate had made good returns. This is not surprising as properties values tend to be on the rise over a period of time. They are not as volatile as other investment such as the stock market for instance. However, the question now is… Is it still a good time to invest in real estate now since the mortgage or housing market was hit by a crisis?

Not many people believe it but the answer to the above question is yes. Well, because the price is low now hence it is a good time to buy. The most basic principle of any investment is to buy LOW and sell HIGH. But, unfortunately most people don’t apply this principle.

It is the same if you were to invest in a portfolio of stocks for your retirement. In order to get the best return, you want to make sure that you are buying stock at its intrinsic value. Unfortunately, 95% of investors don’t follow this principle, they are after those hot and high-priced stocks instead. This is a mistake because they are overpriced. That’s why so many people lose money when there is a financial crash because those overpriced stocks will also be crashing down (back to their intrinsic values).

So, the same principle applies when it comes to investing in a real estate. Buy when the price is low to get good return in the future. Of course, you must be willing to hold it for 3-5 years till the dust has settled and your investment will rise in time.

But there are several strategies you can use for property investment.

Flipping property is one strategy in which you buy a property by paying a holding deposit and then try to sell it before having to pay the balance. For example, let’s say you find an off-plan property up for sale from developer for $185,000; the completed property will be selling for $200,000.

You pay a 20% deposit (which is $37,000), with the final balance of 80% ($148,000) due in 18 months when the property is completed. Let’s assume that you have picked a good location and the property goes up by 20% over the next 18 months. So the property is now worth $240,000.

Let’s say you manage to sell the property for $220,000. You pay off the 80% balance you owe and you are left with $72,000. This gives you a NET profit of $35,000 in 18 months and remember you only had to commit $37,000 initially. This is a return on investment of 94.5% over 18 months. Where can you find an investment that can give you more than 90% return in 18 months?

Another property investment strategy is Foreclosures. Many foreclosure prices are significantly lower than the market prices. So again, you are applying the principle of buying LOW and selling HIGH. However, this strategy often requires you to have a substantial cash outlay. You must also perform proper due diligence when researching foreclosures. Are there any other additional liens against the property other than that of the foreclosed note?

Incorporating Diversification Into Your Investment Strategies

The economy in general stinks and no matter what the news channels say people are still worried about whether they will have a job in the next six months. Some people have some funds saved up and want to create some more income but how do you wade through all of the get rich while sitting in your underwear job scams on the internet? All of them require some sort of up front fee to get the “exclusive” information and usually have some sort of monthly fee to keep getting the necessary info to keep making any kind of money.

Smart investment advice has always been to put some money into the stock market and let it grow. Most people are now afraid of what they stock market can do to your retirement, but if you did not have money invested in those companies that collapsed you should see your accounts getting back to where they were a couple of years ago. You can find any number of systems available online that will enable you to make successful trades without a huger investment so that even the beginning investor can try the market without risking his entire investment.

Most stock trading systems will tell you that anyone can use their system with ease. You should always educate yourself on the workings of the stock market before making any kind of investment in a fund or particular stock. At one of the stock trading systems I reviewed they let you know that they have a timing system that analyzes the trend of the market and lets you know when to get in and when to get out. They say that if you miss a trend by more than a day it is best to wait until the next cycle.

They have a stock chart that is updated daily that gives you the top 100 performing stocks from which you should pick the top 5 or 10 that have activity over 100,000 shares to work with. Their best recommendation is to not diversify your self to oblivion. Many “stock experts” recommend you invest in as many as forty stocks. What will happen is that your portfolio will resemble an index fund and you will have too much to keep track of on a daily basis. Pick no more than eight stocks and follow the charts to determine when to get in and out of a particular stock.

Ideally you only want to concentrate on the three or four stocks that are poised to make big gains in the next cycle. If you have more than eight stay out of individual investing and go to any sort of stock fund in the stocks you like to follow. One system, Ultimate Trading System, warns that it is only for experienced investors. They offer daily updates before the market opens of stocks that are poised to make one to five day moves. They will give you the sell signal so that you will get out with the optimal profit.

Different Investment Strategies

When suffering financially challenging times, there are numerous techniques people attempt to get cash quickly. Possibilities such as loans, pawn shops, lottery and gambling are just a handful of of the techniques that you can choose to help earn money to pay for mortgages, automobile payments or even to put food on your table. An additional choice that people do not think about is the stock market, especially when it is down. As far as investment strategies, placing your money into the stock market is a smart decision even if its in a recession. In that case, it can generally only go up from there. Remember to “buy low, sell high”.

Through smart investment strategies, you can make much more money than with a slot machine or in a game of poker. Statically, over time, the returns from the stock market are better than any other possibilities of investments for your cash. Though the returns on money from the stock market are not as instant as turning in items at a pawn store or receiving a loan, making smart selections by investing your money in the stock market will give you a greater return.

There are several approaches to how you invest your money in the stock market. One is the buy and hold. Selecting this for one of your investment strategies can be your finest bet. It deals with buying stock and holding onto that stock for as long as several years to as little as a few months. You will be buying the stock from the well know S&P 500. You can do this by means of a mutual fund that helps you diversify your stocks for better results. The threat on such an undertaking can be low or large, depending on your personal preference.

An additional one of the possible investment strategies is that of fundamental analysis. This method requires more study and time than some people are willing to devote. It takes into consideration a specific company’s income and dividends along with the upcoming of those profits. In other words it is a reduced stock that may prove to be profitable in the long term, therefore earning you excellent returns as its stock proves to be more valuable. As an investment method, this can be risky as the company could go bankrupt and you would lose your money. On the other side you can make excellent money if the company grows and becomes very worthwhile.

Technical analysis is a third alternative for your distinct investment strategies. It is crucial to know that studies have shown this alternative to be less profitable than others. As a technique to gain cash from the industry, it too requires quite a bit of study to accomplish. By analyzing the changes of past cost and demand of trading in the stock market, specialized analysis investors invest in or sell stocks. Patterns are seen all through the past of the stock market and investors make predictions and purchase and sell in hopes that it will repeat itself.

Fantastic investment strategies will be much more beneficial than spending your time in a casino, pawn store, or with a loan officer. When facing economic troubles or a lack of money, attempt a different route that will pay off later via the stock market. Do a little research and you can make sure that your loved ones will be okay in the future despite the present tough times. Forget wasting your cash playing blackjack and make a certain investment in the better returns of the stock market.