There are very few investments that can guarantee a return on your money (ROI). One that can is investing in real estate. If you are interested in investing in Piermont real estate in New York or anywhere, there are a few things you should know first. We will discuss some of those this month and the remainder next month.

• When many people decide to invest, who really do not know what they are doing, they spend thousands of dollars buying books, tapes and seminars. Then put all of that information on a bookshelf and never look at again or even use it. It could be the biggest financial mistake you ever make.

Many potential investors realize real estate investing is the one of the best ways to accumulate wealth and enter into the purchase of properties without knowing the basics of real estate investing. These people are almost certain to get into financial trouble.

• Learn the basics before you jump into your first deal. You need to consider working with someone with experience on your first few real estate investing deals. Get a mentor, take real estate classes and implement learning from books and tapes to follow in the footsteps of those that are already successful in real estate investing.

• If you think realtors will view you as competition, asked for their help. You can easily work with all over Palisades’s real estate area working to help you find more and better real estate deals. Since they get a commission for each sale, they will be eager to find you a deal. Be sure and be ready to take those they bring you as you want to work with them in the future as well!

• There can be delays in a real estate project that leaves real estate investors open to vulnerability from shifting economic factors.If the housing market cools off and interest rates spike before you get your house on the market or sold, you could be left with expenses like mortgage payments, insurance premiums and property tax added to your balance sheet.It would be a good idea to add an additional 10% to your calculations for these holding costs when calculating any real estate purchase.

Remember, this is a different kind of business altogether. People ever were, just like you, buy and sell properties and earned hundreds of thousands of dollars and often just within a few days of purchase. To be a smart investor, you need to know that a real estate property that you have selected can be extremely rewarding if selected with care. It can bring more than 100% ROI per year as well as a good value increase over time. This is why real estate investing has become one of the preferred forms of investment by smart investors.

• You should also know that there is an alternative to real estate investments called “paper investment”.This is where an active real estate investor will supplement your portfolio or even make a full-time business in lieu of actual physical ownership of the property.This gives a investor a way to invest in real estate without the daily logistical headaches of more traditional investing.

Return next month for more tips on real estate investing.

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Tags: nyack ny real estate, Palisades Real Estate, piermont real estate

This entry was posted on Tuesday, May 13th, 2008 at 5:17 am and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.