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Real estate investment is more profitable than any other field. As far as stocks and real estate is concerned one can look at following example.

Let the initial value for both real estate and stock be $100000.let us suppose that the investment in real estate is $5000 and $95000 is taken as loan. However in stock the full amount is submitted. The mortgage amount for real estate is $95000 and that for stock is 0.The mortgage rate for real estate is 6% and that for stock is 0%… the projected annual growth for real estate is 5% and that for stock is 8%. The projected profit for real estate is $155000 and that for stock is $ 200000. Hence the profit percentage for real estate ends up with 1100% where as for stock is just 100%.hence real estate has more ROI than stock. However there is some hidden cost with real estate. Anyhow the real estate is really profitable.

Once you buy a real estate you are free from all headaches. All the headaches are before you buy the real estate. Once you buy it you are free from all tensions. The only job remaining is the maintenance. However in stocks you have to look for the rise and fall in shares frequently. You are free from this headache as far as real estate is concerned.

Real estate investment is long term investment and one who is going to invest must be careful. The actual profit from real estate is calculated after taking out the hidden cost like:

1. The purchase price.
2. Amount of the loan.
3. Terms of the loans agreement.
4. Rate of capital appreciation.
5. Income generated from the investment such as rental income.
6. Property tax and insurance etc.

The main concept for earning more profit in real estate is to buy for less and sell for more. This is only possible if we do some homework. Proper inspection can reduce the buying cost to much extent. You should try to do detailed inspection of the property. You should also look for how much repairing is required in the property.

If you have guts you can also go for disputed properties. This will earn you lots of dollars but is risky. The seller is always ready to sell at lower price if some disputes are there with the property. You have to do some hard work to solve the dispute. However the fruit will be very sweet. The fruit will be sweeter if you follow all steps. The sweetness increases if you keeps yourself up to date and regularly pass various courses related to real estate. This will improve you skills and you will find yourself more effective.

Investing in real estate is not a kid’s job. It is done with extra caution. Lots of ideas and recommendation are taken before actually investing. Since last 50 years real estate has been the hottest area to invest in. however it’s much more complex than stocks and bonds. There are great chances to get huge profit. But it is a tough job.

If you are a land lord and has bought the house by taking the loan you should be cautious before demanding for rent. You can ask for rent on the basis of expenses. You can also add the profit in the rent. But it is always advisable to not include this in the rent unless and until your mortgage is paid back. Once you are free with mortgage, you are free.

You can sometime end up with bad tenant who harms your property. In this case you can suffer from negative cash flow.  And still you have to pay the loan. You can sometime end up with no tenant.
As far as rental property is considered the buyer looks for the place which is in high demand and the people searching for rental estate is more. They search for a place where the number of tenable=nets searching for the property is more and there is scarcity of rental property.

If you don’t want to suffer as landlord then you can be a part of real estate investment group. The company looks after the whole property. They are responsible for interviewing the tenants. They are responsible for maintenance. In return the company takes a part of the monthly rent.

There is also a category of real estate trader. They are a bit different from buy and sell landlords. Real estate traders intentionally take the property for shorter period of time not more than 4 to 5 months and then sell it at higher price. This technique is called flipping. This type of flippers does not spend any money in maintenance. They don’t even keep enough money for paying back mortgage.
There is a type of flipping expert who buy the property at reasonable rate, have some renovation done and then sell it at higher price.

A recent survey organized by New York welfare society, most of the real estate deal ends up with profit. Surprisingly last year the percentage of real estates deal which saw loss was only 3%. This statistics clearly suggest how dominant this field is.

A Real estate wholesaler is one buys the property at discounted wholesale price and sell it at real market price meanwhile earning profit. This is a very challenging job. One has to first locate the property, which a seller is willing to sell. Find out for the discounted price. Get the repairing done. Calculate the after repair value (ARV). Then calculate the actual prize and sell it to the investors who are either doing rental or retail business.

There is not much difference between a property locator and real estate wholesaler. Property locator find the location of the real estate which there for sellout. They get commissions as a percentage from the amount at which the property is sold out. They are hired by wholesalers to locate the discounted real estate. They get the salary or on most of the occasion commission for this job.

Once the property is located, it’s the time to fix its price. Wholesalers look for the similar house. Try to know their selling price and then divide the whole price by square footage. One can calculate the square footage by calculating the dimensions of the outer boundary. One can also look for house tax receipt for finding the actual square footage. The cost of the land is calculated by checking the market price of the locality. The price is more if the house is in the location where good schools are located and the market is located nearby. If property is well built and it’s not required to bring down the building and make it again. In this case the price will be higher.

However in all cases the wholesaler makes sure that he buys the property in least possible amount. Then only he can earn more profit.

In most cases it has been found that the properties which have some disputes or the seller is in a hurry, then only the wholesaler is able to buy it in discounted price. There might the case that the seller of the house is permanently transferred. Wholesaler looks for such types of properties those are hard to sell. They found themselves to be stronger to settle any disputes if it is with the property.

Real estate wholesaling is not a kid’s job. It needs lots of labor and hard work. However sweetest fruit is guaranteed. I really recommended you to start your career as a real estate wholesaler. But you should be ready to do the hard work.

Real estate is a hot topic. Lots of seminars are being carried out. A seminar can be on any topic. Let it be Real Estate.

Whenever you will attend a real estate seminar, you will come across following points:

• Lease options.
• Prophets of financial or planetary doom.
• How to bargain?
• How to purchase?
• How to invest?
• How to squeeze more profit?
• Flipping real estate.
• Nature of investing.
• Should you pursue the bird dog strategy?
• Recommended shopping list for millionaires.
• Review of building wealth.

And so on.

I receive lots of enquiries about gurus who sell expensive seminars and home study courses. I do not directly compete with gurus but I would like to give reminder that most of them cheat. I believe that many of them give real estate investment a bad name.

I believe that seminars that cost more than $100 per hour per attendee are expensive.

Real estate investment is the only field where even worst material can be most expensive.

There is a reason for this. Knowledgeable persons will not be ready to overpay for any advice.  Only ignorant people will.  So those gurus who want to charge extremely high must necessarily prey on ignorant. Since the audience is ignorant, the gurus in question are free to offer materials that just sound good. When somebody does not know about somebody they start thinking their price as value. That is, the costly it is, better it would be. They don’t think that others in the seminar can be ignorant. They think they are there because they think seminar is worthy.

Many seminar speakers are unethical. Their job is to find out how much money is in the audience pocket and how to get it into own pocket. They can put various color dots, which just sum up their investing power. Suppose red dot denotes $1000000 investment and blue denotes $4000000 investment.

The point is that you can often be bribed and made fool by various seminar speakers. Be careful. Otherwise a slight mistake will land you into jail.

Robert G. Allen (San Diego, CA) has rightly said, “Think twice before grasping any seminar idea. Make sure that the speaker is well known. Don’t go on cost. Go on quality”.

Being a part of all seminars is good but grasping all the ideas is not good. At first filter out the idea what are good and what are bad? Then only follow the idea.