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Thursday, May 31, 2007

The Real Estate Investing FAQs?

property investment indiaIt is well known fact that to invest in real estate is a fastest and most proven ways to earn real wealth.There are various methods like flipping, development, buy and hold, land splits which make money in real estate.

The following are the FAQs (frequently asked questions) which make an advantage in investing in real estate.

#1 - Are we in a real estate bubble?

This is by far the biggest question I hear. To be sure, the recent real estate boom was the largest the country has ever seen. Not since after World War II has real estate appreciated so much, so fast. Now the market psychology has changed and many investors question when the market will recover.

#2 - Are stocks a better investment than real estate?

I am always amazed how often this comes up and how the answer is spun depending on whom you are talking to. The real estate folks say that it’s real estate, while the stock market guys say stocks. The investor must take a close look at both the quantitative and qualitative factors of each class of investment.

#3 - Can I invest my IRA in real estate?

There has been a lot of media attention recently on this topic. People often ask me whether this is even legal. There is no doubt that it is legal, but it can be complex. Considering the uncertainty of social security, investors need to do what they can to fund their own retirement.

#4 - Can I really make money with foreclosures?

We have all heard about the money that can be made buying and selling foreclosures. But considering the risks involved, can you really make money in foreclosures?

#5 - Is making money in real estate easy?

I think you know the answer to this one. Making money in real estate takes a lot of diligence and hard work. But fortunately it can be done, and has been done by many. If it was easy to do, I’m not sure it would be so profitable.

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