A challenging part of the business
The mother of all challenges in real estate investing is the rental market. In order to be a successful landlord you will need exceptional diplomatic and communication skills. Your tenant will test you to limits that you never thought possible and you will be given the runaround by the estate agents as they seek to minimize their loses at your expense. You will be insulted and called every name under the sun just because you happen to exercise your rights to collect rent.
The government will take every opportunity to increase your taxes and will slap all money of regulation onto your business as if in a deliberate attempt to make you fail. At the end of your business cycle, you will find that you have not make the profits that you wanted to make in the first place yet your property will be in tatters partly due to the mischievousness of the people you decided to invite into your house.
The Global Downturn
The global downturn heralded an age when investing in real estate was no longer seen as being profitable. The rental market was collapsing and the first time buyers were holding on for better times. Established home owners had undergone bankruptcy and were never going to consider the property business as a really profitable venture again.
The financial experts were warning anyone who would listen that it was no longer practical to sustain whole economies on debt and a shaky housing market. This then leads us to ask the question as to whether it is still possible to make a decent profit from the real estate investing sector of the economy.
Closing the Deal
Imagine that you have now finished investing in your property and all that remains is the successful return of your investment with a healthy profit. You have one more last step to take and that is selling your property. No matter how much effort you have put into your real estate investing plan if you cannot sell or even make a good sale then everything is as good as lost.
What a shame it would be after all that hard work and the investment to fall at the very last hurdle. However if you have good advice and take the necessary precautions you can avoid some of the more serious losses that await you at this very late stage of your investment.
If you believe in harvesting profits out of hype in the property market, then it would be wise for you to invest in the distressed properties. Indeed, there are many possibilities of making money through investments in the foreclosed properties. The basic principle that operates behind the real estate investments is buying low and selling high and this can be done only if you adopt successful foreclosure investment strategies.
First of all, you should not rely upon the foreclosure lists while searching for a foreclosure property. This is because by the time these lists come out; several other investors would have already left you behind.
Everything is not always what it seems
Real estate investment needs a lot of cash and investor input efforts to try and works in rehabilitate the investment. The least desirable outcome that the investor expects is to discover that their investment is worthless. The repercussions can be devastating on both the investor and the business partners that they work with.
Legislative arrangements have been put in place to make the system more challenging for those who may not have noble intentions. Success in this aspect is somewhat patchy and limited in effectiveness. Consequently real estate investing is riddled with fraudulent deals and failed compromises. It is a minefield for those who get involved in it.
Cash needs cannot be ignored
You will always hear the mantra that this or that business deals on the basis of cash on delivery. You will also meet business people who are not willing to give credit no matter what the circumstances. They will insist that you give them the money before they do any work for you. Real estate investing is no exception.
Although it is not always that you use actual cash in the real estate investing business, you will be required to have plenty of liquidity in order to successfully undertake all the relevant tasks that you will need to do on a daily basis in order to make your business a successful one.
The potential to become a money spinner
With the advent of the economic difficulties that most major economies have faced in the world, it is not entirely surprising that real estate investing is being approached with some caution in terms of its potential to be a means for earning a living. I for one still believe in the sector because it has sustained the wealth of many people across centuries such that some young people today are still living off the real estate investing that was carried out few centuries ago.
However in order to make a profit from real estate investing, the person joining the industry has to follow some rules otherwise they should be prepared to make significant losses. If you play your cards right, the rewards can be spectacular but likewise if you go about your business in a perfunctory manner then the losses will also be equally spectacular.
Precious metals, including silver, reached their peak prices in 2011. While those heights had been unprecedented and excited many investors, the prices have been declining since then. However, there are now indications that these prices have hit a bottom and will soon rise again. What, then, is the diagnosis for silver investing in 2013?
Silver Equity Investments
Exchanged traded funds, or ETFs, are one way that many choose to invest in silver. In most cases, these are slightly more risky than physical silver, but some funds are directly backed by physical silver, with each share indicating a certain amount. Investors can even trade in the shares for the physical silver if they so choose. In August 2013, trading within silver ETFs saw a marked increase, much more than gold in the same period. Many investors believe that this indicates renewed interest in silver investing in 2013 and that the previous low will therefore be the bottom of silver prices for some time.