Investing in Real Estate is Not Easy

September 30, 2017 Facebook Twitter LinkedIn Google+ Online Auction

Today’s real-estate market is leading many to dream of becoming real-estate tycoons: snapping up properties at low cost and selling them at a profit? Is that a dream you can make reality?

It is possible to make real estate investing a profitable venture, but it will not be easy. If you don’t know what you are doing, you could lose your investment – or take years to earn it back.

Before you start checking the real estate listings, think about what you want. Are you planning to invest for the long term or do you want to buy quickly and sell quickly? Do you have the money and time to make necessary repairs and upgrades?

Another important question to consider is how much risk you can handle. Real estate is an especially risky investment because it takes so much time to realize a profit. To reach that profit you have to spend a lot of money: on the property, taxes, repairs, insurance etc. You also have to spend a lot of time: in repairs and in waiting for the market to cycle to a favorable condition for you.

These are not just theoretical questions. Research how much money you have to invest. Write down how much money you want to have in one year, in five years and in 20 years. Determine whether you want to use your primary home as collateral on your investment. (This will increase the size of the loan for which you will be eligible, but it also means you can lose your home if you cannot make your payments.) You may be more comfortable investing money on a smaller “fixer-upper” property.

Many people are tempted by offers to buy a parcel with no money down. These generally involve high interest rates and closing costs. It’s a very risky venture because no matter what happens in the market, you will still have to pay the full amount eventually.

Before you take the plunge, learn everything you can about the real estate market. There are many books and periodicals available to teach you the basics. The internet is also a great source of real estate information. You can learn everything you need to know about contracts, mortgages, insurance, legalities etc. The best investment is one that you have spent some time researching.

Be sure you have access to good legal and financial information before you invest. If you don’t know your legal rights and responsibilities you could make a serious mistake that could affect your financial health and future.

Real estate investing is not an easy venture, but with careful research and planning, it is possible to get a very healthy return. Because properties are unique, you can have a real adventure in watching changes in your investment.

The essayist Ray Walberg is especially interested in areas associated with Costa Blanca properties. His publications on properties in Costa Blanca are published on

In the highly desirable town of Great Falls, Virginia, this masterpiece estate artfully blends dynamic architecture with the simplicity and grace of its surrounding nature. Wooded grounds, seasonal gardens, a stream and koi pond on approximately 2 private acres, offer the ultimate experience in luxury living and entertaining with the convenience and amenities of Washington, DC. This estate will be auctioned by DeCaro Luxury Auctions on the property site Saturday, November 21, 2015 at 11:00 AM. The estate will be sold at Absolute Auction to the Highest Bidder, WITHOUT RESERVE.