People seem to have no problem putting money into the stock market. However, it can be risky and difficult to figure out exactly what to invest in. For example, when you buy a piece of rental property, you can reasonably anticipate what the future rents and expenses will be. But if you buy a stock, the value of the stock could drop in half almost overnight, and its dividend could be totally eliminated! Real estate, by contrast, is a much safer investment. Moreover, you will find that investing in real estate becomes easier and easier as you acquire more properties. In fact, once your friends and acquaintances see how you're amassing properties, they'll often ask if they can "get in on your next deal." When investors don't have the time, but do have the cash, they will frequently loan money to you at a good rate of return, or perhaps even agree to share in a portion of the profit upon resale of the property.
Where can you find investors? Check your local newspaper for "money lenders," or do an online search. It may even be as simple as a friend who isn't happy with his or her return in the stock market and is willing to lend you a large sum to purchase the property, while they hold the mortgage, and make a good return on their investment through your monthly payments. And if you have an investor willing to loan you only a portion of the purchase price, be sure to find out what your lender's requirements are before you structure a deal.
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Discover the Jealously Guarded Insights of Real Estate Tycoons and Hot Dealers! Back in the days of the wild, Wild West, when easterners traveled across this vast country looking for opportunity in the newly opened territories, they were often referred to as a ‘tenderfoot’.