About the Author
Cedrick Reese
Late night television and radio advertisers want you to think that real estate investment is a gold mine waiting to be discovered. In some ways, these advertisers are correct there is a lot of wealth in real estate investments. What these advertisers fail to mention, however, are the risks that go along with investing in real estate. It is helpful to hear both sides of the story before you make a decision about going into real estate investment.
Real estate investment requires a serious time commitment. There are so many different aspects to the business of real estate that it becomes difficult, and sometimes impossible, to give only a small part of your attention to your investment endeavors. Before making an investment, it is important to understand all the factors that play into your decision. This includes capital appreciation, tax benefits, cash flow, equity paydown, and those are just a few. Each element of real estate investment requires a serious amount of time. Shortcuts can be detrimental.
There arent many people who realize that real estate investment is a business and carries along with it all of the risks that any other business would have. Similar to the time management aspect of real estate investment, the business aspect is something that also needs to be taken into consideration. If you do not understand some of the basics of how businesses work, you could find yourself facing a difficult situation with no resources to assist you.
Negative cash flow is a possibility. Not everyone is so lucky as to get a cash cow with every property purchased. It is normal for investors to experience a period of negative cash flow at some point during the real estate investment process. Whenever you a property begins to cost you more than it is profiting you it is time to assess the situation. Careful analysis is needed to make sure you arent divesting a property that could end up benefiting you later on.
There is a lot to know when it comes to real estate investments. Much of this knowledge will come as you gain more experience with making transactions. The first time you encounter an unfamiliar situation, you might be confused as to what you should do. Often, individuals in real estate investing do not have a manager or superior that they can go to for advice in a difficult situation. This leaves the possibility that you could make a wrong decision. Mistakes are unavoidable. The important thing is that you dont make mistakes that could end up costing tens or hundreds of thousands of dollars.
As a real estate investor, you need to read and inspect every document and piece of property thoroughly. You cant afford to let even the minutest mistake slip through the cracks. Never sign anything you dont understand and never purchase a property that needs significant repairs. These are the mistakes that can end up costing you a lot in the long run.
Is real estate investment a lucrative business? Yes, it is. Are there risks associated with real estate investing? Yes, there are. Ignorance may be bliss in many situations, but not when it comes to something as complex as real estate. Knowing the risks involved with real estate investing you to set yourself up for success.
Published by Cedrick Reese on September 27, 2006 03:10 AM
A Tenant’s Guide to Renting
The first challenge every tenant faces is finding an apartment for rent that suits their individual needs. For today’s tenant, the most effective apartment search can be done using an online apartment finder. Tenants should decide what they require in an apartment or house rental before beginning their search. For example: the number of bedrooms, location or distance from public transportation and how much the tenant can afford to pay in rent, furnished or unfurnished apartment, etc. By making these important decisions first, tenants can avoid renting an apartment or house only to regret it later. Many tenants today are taking advantage of the convenience of the internet to locate apartments for rent as opposed to the traditional print publications.
Once a possible apartment or home has been found, it is the tenant's duty to thoroughly inspect the premises making a commitment in the form of a security deposit. A tenant should not rely on the landlord or the landlord's agent to tell the tenant if anything is wrong with the property. The tenant must inspect the property carefully and ask questions about it.
Inspecting the condition and functionality of the following areas/features of the apartment before committing yourself as a tenant is highly recommended.
1. Kitchen appliances in working order.
2. Water pressure strong, plumbing without leaks.
3. Electrical outlets and wiring working.
4. Walls and ceiling painted or papered without cracks
5. Ventilation or air conditioning accessible.
6. Floors, railings and bathrooms in good repair.
7. Fire escape easy to use.
8. Stairs safe and well-lighted.
9. No rodents or insects.
10. Heating system in working order.
11. If furnished, check and write down condition of all furniture.
12. Windows and doors operable and weather-tight; screens provided.
The tenant should also check the security of the building to find out if there is a dead-bolt lock, security chain, or through-the-door viewer.
BEWARE OF EXISTING DAMAGES: In order to avoid being blamed for damages that already exist in the rental unit, the cautious tenant should take every step for self-protection. Before moving in (or as soon as possible thereafter), the tenant should make a list of all existing damages and repairs that need to be made. A copy of the list should he presented to the landlord and attached to the lease This way the landlord cannot blame the tenant for damages caused by others and the tenant will know what the landlord intends to repair. If the tenant keeps good records the landlord will not be able to keep the tenant’s security deposit for damages that were actually caused by others. Taking pictures before moving in is also strongly recommended.
ABOUT THE AUTHOR: Paul Rossano, associated with www.AllSpaces.com who “Conveniently Connects All People with All Spaces in All Places” has been dedicated to the Real Estate rental market for over 8 years. He has assisted over 25,000 tenants with their renting needs. Any questions about renting apartments, houses or other rentals, feel free to visit www.AllSpaces.com or email him at Paul@AllSpaces.com.
