» Where to Invest in Real Estate, Part 2 of 2 » Posted by Realestator      

Yesterday we discussed Where to Invest in Real Estate, and determined investing in Emerging Markets is the best route to take. An Emerging Market is defined as a growing area with potential where you can still buy low-priced property and receive very high returns on investment.

Searching Online for Price Only: The easiest way to find property is by searching online. You can utilize a technique called reverse searching - enter a price range, hit search, and look at what areas come up. You can then proceed to drilling down into each area and finding out more about it so you can decide if it is an area you want to explore further.

Magazines & Newspapers: Once in an airport I found a magazine that listed the top 10 emerging markets. And it was right on target! Perusing the magazine aisle once in a while can bring you information on topics you might not be able to readily find elsewhere. Also, whenever you travel, pick up the local newspaper and check out the real estate section - there is a wealth of information in there. Always read the classified and look for “anxious” seller language, such as “seller financing” or “owner will carry.” Also look at the rental rates and compare them to the home prices - you can tell very quickly whether an area is cash flowing or not. Use the 1% rule. If the rents are 1% of the purchase price, in most areas, you will be cash flowing (high property tax states, like Texas, mean the percentage will need to be higher).

Investing in emerging markets will give your portfolio an edge over flat or higher priced markets. If you find this task tedious or unenjoyable, then chances are you should not be an active investor, because this will be a large part of your weekly life from here on out!

For more real estate investing information, visit the realestator’s website at www.real-estate-investing-support.com

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» Posted in Real Estate Analysis on May 13, 2008.

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