Real estate investing is the buying and selling of properties that hold a minimum potential for revenue growth. Real estate is land consisting of the structures and land on it, and its accompanying natural resources like water, minerals or plants; and immovable personal property of this kind. Real estate investments may be in the form of commercial real estate (the buying and selling of space) or residential real estate (the buying and selling of homes). It may also be in the form of vacant land intended for development into residential housing. Some real estate investors also deal in the leasehold property market.
The term ‘real estate’ can sometimes apply to business premises or to a portion of a business premise, such as a building or portion of a building that is not used exclusively as a business. This is known as ‘common law’. Common law also applies to leases, subcontracts, rights-of-way, easements, property liens, judgments, and sales. It does not, however, apply to ‘dry land’, which is land that is not within the limits of a city or town and that is used exclusively for non-business purposes.
You should probably avoid buying real estate property unless you are certain that your needs will not change in the future. If you do intend to expand your business in the near future, you should buy commercial real estate, rather than residential real estate. Even if you intend to keep your current premises when you make the investment, you may wish to look at purchasing a piece of real estate that will increase the value of your home, or that will be an attractive addition to your current property.
When buying real estate property, you need to be very careful to choose a reliable agent who is well-known and respected in the market place. In today’s highly competitive market place, that can be virtually impossible. For this reason, you should do some research into who is available to help you with your real estate needs. Make sure that the person is independent, diligent, and knowledgeable, as well as capable of handling all of your information and documentation requirements. Once you’ve found someone who meets those criteria, ask questions and find out their experience in the real estate business. Get at least three different quotations from different agents, and go with the one that makes the most sense for you.
Do your homework by reviewing all of the paperwork that is required when making a real estate property purchase. Read through everything carefully and don’t hesitate to contact the agency that prepared it if there is something you don’t understand. You should always be willing to pay for the services of a good real estate attorney when making a real estate property purchase. The more you can afford to pay for legal advice, the better off you’ll be.
When you’re ready to make your purchase, you’ll need to have a financing plan in place. It is common practice to require a down payment, which is usually 10% of the real estate value. If for any reason you cannot afford the down payment, you may want to consider getting a loan from a bank or other lending institution. However, remember that banks tend to view real estate as a risk, so it may be difficult to get a loan from them. If you’re unable to finance your real estate purchase on your own, you may want to consider working with an experienced real estate agent to help you obtain a loan.
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