What is Real Estate Investing?

The question, "What is real estate investing?" cannot be answered without considering first, it's textbook definition and then it's conceptual definition.

The Academic Definition

Real estate has been defined as land (or immovable property) along with anything permanently affixed to the land such as buildings, and investment is the act of using money to purchase property for the sole purpose of holding or leasing for income. It is safe to say then (combining both definitions) that real estate investing involves the acquisition of real estate (or investment in real estate) for purposes of generating income, making a profit, and acquiring wealth.

The Conceptual Definition

Leverage In contrast to stock investments (which usually require more equity from the investor), it is possible to leverage a real estate investment (heavily). With a real estate investment, you can use other people's money to magnify your rate of return and control a much larger investment otherwise not possible.
Tax Shelter Real estate investing provides tax benefits. There are yields on annual after-tax cash flows, equity buildup through appreciation of the asset, and cash flow after tax upon sale.
Non-Monetary Returns Real estate investment provides pride of ownership, the security that you control ownership, and portfolio diversification.

Real estate investing is not a bed of roses, though. Real estate investment does require capital, there are risks, and rental property can be management-intensive. On the other hand, the car you drive required capital, it involves risk driving, and it certainly requires management. The difference is that a car is not a source of wealth.

How to Become a Real Estate Investor

Develop a real estate investment goal. What do you want to achieve, and by when do you want to achieve it? What rate of return do you expect to want to receive on moneys you pull out of your home or bank account to purchase an investment property given the risk?
Learn what returns you should look for, and how to compute them. You cannot succeed in music unless you can read music. Invest in a good real estate investing course or real estate investment software where you can learn how to run the returns and compute the formulas.
Be wary of Get Rich schemes. There are many so-called gurus ready to teach you how to make millions with real estate investment property. But let logic be your guide; we believe that nobody who finds a gold mine publishes a map.
Create a relationship with a real estate professional that knows the local real estate market and understands rental property. It will not advance your investment objectives to spend time with the "agent of the year" unless that person knows about investment property and is adequately prepared to help you correctly procure it. Find an agent that understands real estate investing.

What is the conclusion? That real estate investing is a business about owning a piece of ground that, when researched and purchased sensibly by impartial numbers and careful management, and with reasonable goals and caution, will likely be more valuable tomorrow than it is today.

Country Days

                                                                       Hello everyone,

           On a beautiful day last week my friend Janice and I went for a little day trip to some of our favorite places and some new back road country places that we had not seen before.
  Trust me to find some old country home and fall in love with it!
 We had a tour of an old church that has been restored and used for cooking classes-Annies Table. The pretty yellow house is her home that has also been restored-for some of the classes you get to tour the house and Lucy Maud Montgomeries birth place also. Sign me up!
     I enjoyed the day with Janice so much my husband and I went back for a drive one nice evening.
  The same house in the sunshine.

              We stopped to admire these beautiful horses on a very scenic farm. I love the hills in the background.

  For some reason the song "An Old Log Cabin for Sale' with an old open bucket and well kept going through my head here. It was a song my parents enjoyed many long years ago. My husband said it is an old Wilf Carter song. Anyone else know it?

               A field of Golden Rod in the evening light.

Happy Birthday to Jessica!

On a different note it was a little birthday celebration for Jessie who just turned seven and her cousin Lucas and Sasha Jessie's puppy enjoyed some fun and cake and icecream. Little Lucas is still travelling once a week to Montreal( a day trip most weeks) for a drug trial for Muscular Dystrophy as some of you may remember and we are happy with how well it is going for Lucas and his Mama.
Hope you enjoyed my' country days'.

Thank you for your visit!

Simple Pleasures

                                                     Hello everyone,
              Hope your summer is going well and you have had time to enjoy some of the 'simple pleasures' of summer.
               Wildflowers and a good book.
 A casual summer picnic on a sunny summer day.
                         Iced tea and a fresh juicy peach for a light snack.
                   I love this toile pillow- a gift from my sister in law.

                Did you notice the pretty parosol/umbrella?  Polks dots are one of my favorite things this year so for 50 cents-who could resist?

 With summer's end rapidly approaching I want to enjoy some of the 'simple pleasures' of summer before moving into fall.

Today,I am joining Rose Chintz Cottage for Tea Time Tuesday.

Thank you for your visit,


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