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Secrets of Making Money from Real Estate - Part 1
There are three investment vehicles which can make you rich. Stocks, businesses, and real estate. Stocks can return lots of money in a short amount of time, and can have a steady rate of return using investing techniques such as dollar cost averaging. However, but how much stock do you think you can buy for $20,000 dollars? $20,000 worth of stock. What about using someone else's money to buy more? Try asking your bank manager for a loan of $100,000 to buy stock! You wont be very successful. This is the principle of leverage. In stock there isn't much of that, you can't get rich using other peoples money. Also with such a volatile market trading can be nail biting! Businesses for most people, can be very hard to start and run. I read somewhere that 9 out of 10 businesses fail with in the first year. Out of the successful businesses left, within the next 10 years 9 out of 10 of those businesses fail. Although running a successful business can be very profitable most people are held back by the financial and personal risk, along with long start up hours. I am not saying that these two assets will not work to create money, they can, but for the average person it is quite hard to do so. Throughout the centuries the rich have used real estate as a safe guard for their money and as an asset. So why is real estate such a great asset? Read more in Part 2! This article was written by John Whiteside. The original article can be found here http://www.use-your-equity.com/realestateinvesting.html . Use-Your-Equity can show you how to create value in your home, then show you how to use the newly created equity to make money. http://www.use-your-equity.com for more information.
MORE RESOURCES: In downtown Manhattan, new condo developments offer owners both single-house-style privacy and luxe-building-style amenities. Where others saw a ruin, the buyer of a house in Millburn — a former contractor — perceived buried charm. Two longtime loftmates appeared to be going their separate ways, but the hunt for new apartments landed them in the same building in Williamsburg. West End Avenue and vicinity was once a stronghold of town houses. Three of the now-rare breed bear distinctive traces of the attentions of recent owners. At River Pointe, a community in Manchester, N.J., solar technology that earns energy credits is a standard feature in each house. Questions for a principal of the law firm Proskauer Rose and a co-chairman of the firm’s real estate division. The wealthy and celebrities often buy property under limited liability companies, often with whimsical names. Once a grand mansion steps from Central Park, it had fallen into disrepair. Now it is for sale for $8.95 million. One in eight homeowners had household debt exceeding half the monthly income in 2008, a recent report says. A parking space that comes with the lease; a condo building with no emergency reserve fund; a landlord’s liability in a burglary; dealing with fees on security deposits. An art collector builds a nontraditional house in an Alpine village where life hasn’t changed that much in decades. On Lake Waramaug, a converted boathouse has a stone foundation, a wraparound deck and direct access to the water. A one-bedroom condo in Philadelphia, a three-bedroom bungalow in Tennessee and a two-bedroom house in Wisconsin. A half-dozen buildings on Second Avenue will house ventilation equipment, disperse smoke and allow for evacuation from subway tunnels in emergencies. Real estate investigation, a big business in a borough like Manhattan with plenty of rent-regulated apartments ripe for exploitation, has picked up in the past year. Developers in Midtown are refurbishing older buildings, using tax credits and public financing, as much as they are building from scratch. In today’s market, some New York brokers say they have never encountered so many demands from their clients, or so much hostility. Many economists believe that the days of banking on an asset that could only rise in value are gone for good. |
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