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Discover How You Can Invest in Real Estate

Are you thinking of investing in real estate? Do you feel inspired by the fact that many of the richest people in the world have amassed their wealth through this industry? Many people are aware that real estate investment is one of the very few ways that an average Juan Dela Cruz can hit it big without having to leave the country as an OFW. Because of this, investing in real estate has become a popular option among many Filipinos.
However, there are certain things that make some people aloof to this kind of undertaking. Lack of knowledge on the ins and outs of the industry as well as insubstantial finances are just some of the many reasons why some people hold back from embarking on this type of investment.
But the truth is real estate offers a vast array of opportunities even for the beginning investor. Mortgages and loans …

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How One Can Benefit From Real Estate Investment

Ask any successful real estate investor and he will tell you that the best method to create personal wealth is to invest in real estate. When you invest in real estate in a carefully planned manner, your investment will fetch you excellent returns, unmatched by any other form of investment. Here are a few important facts about investment:
Although investment carries risks like all other forms of investment, the price fluctuations are a lot slower than the stock market or investment in gold. The money you have invested in real estate will not crash overnight. At best, fall in real estate prices may be ten percent less than it was the previous day.
One of the chief benefits of investment is banks and other financial institutions will be willing to lend you large sums of money for buying real estate. It is difficult to borrow money for buying stocks as …

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Transit Oriented Real Estate Investment

One of the few bright spots in the world of real estate investment these days is transit oriented investing. Transit oriented real estate refers to properties located along light rail, bus, subway, streetcar, commuter rail and other transit lines.
These properties are becoming more valuable because more Americans are using transit largely because rising gas prices are encouraging people to look for alternatives to the car. Since experts predict that both gas prices and transit use will increase in coming years, investing in real estate along transit lines is probably a good idea.
Examples of the increase in values of properties on transit lines abound. In Kenosha, Wisconsin, a streetcar line attracted $300 million worth of new development. A similar streetcar line in Portland, Oregon, led to $2 billion worth of new development. This means that people who buy real estate along proposed or new transit lines could be in …

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Real Estate Investor – Getting Rich Without Hassles

Property investors in Canada surely love their businesses, don’t you think? They seem to work 10 hours a week, have plenty of time for their friends and family, and also have money on hand at all times. So, is it really that easy to become a real estate investor? Well, not exactly. In order to become a investor, you need to have considerable knowledge of market conditions, have an instinct to sniff out properties worthy of your investment, and a foolproof business plan. Only a combination of these three elements guarantees a stable career in real estate investing.
Here are some pointers that should help you get started:
* Gain required knowledge: If you want to become an investor but have little or no knowledge of the property industry, then that is where you will have to start. Begin by enrolling in a real estate investment training course organized by …

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How to Calculate a Capitalization Rate Or Cap Rate

The Capitalization Rate or Cap Rate is a measure of income producing property’s unleveraged interest rate return. The ratio is derived by taking the annual net operating income at the property divided by the property’s value.
Cap Rate = Net Operating Income/Value
EXAMPLE 1 Suppose a property is offered for sale at $3,200,000. The sales broker lists a pro forma NOI of $200,000. The implied cap rate would be the following:
$200,000/$3,200,000 = 0.0625% x 100 = 6.25%
This means that if you purchased the property for $3,200,000 with no debt, and achieved a $200,000 NOI in the first year, you would receive a 6.25% return on your invested equity. The cap rate is a common metric used by brokers, borrowers, lenders and appraisers in real estate. It is easy to understand and a quick metric as to the implied “worth” or “risk” of a property.
One way to understand …