Pricing your Property for Sale

If the market current holds more properties than there are buyers to purchase them, prices can be expected to fall. If, on the other hand, there are more ready buyers than sellers, property prices will be driven upward. Furthermore, when particular types of supplies become limited, they may sell for considerably more than they did in a more balanced setting.

Net Leases

A net lease is simply a form of land ownership in which the owner of a strategically placed parcel of property (for example, at a busy intersection) leases rather than sells it to a user. A net lease is one in which the user – the tenant – agrees to pay all costs (including real estate taxes), carry insurance for the benefit of the land owner, make all repairs and replacements to any construction that he or she builds and operates, and keep the property in good condition.

Pools of Mortgages

The creation of a pool of mortgages begins with a mortgage originator who grants mortgage loans to homebuyers. Assuming that the mortgage meets the agency’s criteria,the agency then either buys the mortgages or extends guarantees for them. The pool of mortgages is then purchased by a securities firm which subsequently resells “undivided interests” in the pool to investors.

Mortgage-Backed Securities

One of the largest fixed income markets is the mortgage-backed securities market. Mortgage-backed securities are backed by mortgage loans which, in turn, are backed by liens against real property. However, individual mortgages have a number of characteristics that tend to hinder their liquidity and appeal as potential investments.

Larger Residential Investment Properties

Once you've gotten your investment feet wet in single- or multifamily homes, you may ready to move up ladder to larger residential property investments. These opportunities come in a wide variety of sizes and price ranges. Equally diverse is the tenant population of such properties; in them you're likely to find singles, newlyweds, retirees, and empty nesters.

Investing in Raw Land

Investing in raw land brings its best return when the land lies along a path of expanding economic growth and prosperity. But such expansion is not guaranteed, and its path can often change directions. Increases in land value are virtually always dependent upon the land's future use, economic growth, and demographics, which all boil down to the fundamental law of supply and demand.

Investing in Multifamily Houses

For the purposes of the real estate industry, a multifamily house is a freestanding building composed of from two to four separate living units, with each unit having its own bedroom, kitchen, and bathroom facilities. Some are structured with all of the units on a single ground level, while others may have one or more units on multiple floors.

Investing in Tax Deeds and Certificates

Paper real estate investment is a huge and diverse field. Besides the time and effort necessary to locate and analyze properties, the one big difference that distinguishes investing in paper from traditional real estate ownership is control – or in this case, the lack of it. When you put your money into paper real estate, as with buying stocks, you are no longer in absolute control of your investment.

Group Real Estate Investing

Group investing, or purchasing investment real estate with one or more additional people, can often be a great way to get started in the market or to buy a more expensive property than you could normally afford alone. Each investor contributes a part of the required down payment and shares proportionately in the property's expenses and profits.

Stocks & Bonds

Stocks and bonds can generally be bought and sold quickly and conveniently. And historically, their track records of performance have been good. But neither of those characteristics should be substituted for basic, fundamental knowledge. We highly encourage you to study the information contained in this Section and put it to use.