5 tips for real estate investing

Real estate is no different than any other kind of investment you may be considering to earn supplemental income. There are tremendous opportunities. There are also tremendous risks, especially for the uninformed.

Don’t buy into the late night, get-rich-quick schemes you see on television. When it’s your money on the line, you must be very careful. Smart investors go into any situation with a wealth of knowledge about what they are doing. They get their questions answered before a transaction is finalized. With those precautions in mind, investment properties can be very worthwhile.

What’s the difference between a speculator and an investor?
1) Generally speaking, speculators are looking for properties they expect to go up in value in a short amount of time. They want to own the property for a period of time, then sell when they think it has reached it’s peak value. Investors, on the other hand, are looking at the income the property will generate while they are the owners. They too can benefit from an increase in value to the property but they are not banking on that one factor alone.

Common obstacles for first-time homebuyers

Do you think there are just too many obstacles to buying your first home? Like any challenge in life, you have to make a plan to achieve your goals. Part of that plan will include overcoming any obstacles you may foresee.

Let's take a look at three of the most common challenges facing many home buyers:

Downpayment
1) Saving up your 20 percent down payment. Traditional mortgage loans require the borrower to put down 20 percent of the purchase price, leaving the lender to finance the remaining 80 percent. For example, on a $150,000 home, you would need to put down $30,000. That is a lot of money for many families.