3 Terms That Can Make You a Fortune: Real Estate Investing GlossaryJuly 13, 2017
96% of people who have invested in real estate credit it with their financial success, according to a survey by Better Homes and Gardens Real Estate. But just because something is a good investment, doesn't mean it is beginner friendly.
Many first time investors make mistakes simply because they do not put the time and energy into understanding the market, the business, and the terminology.
We've put together a glossary of important terms that you are going to be dealing with the deeper you get into investment. In the few minutes, it will take you to read this, you can greatly improve your chances of finding the best real estate investment opportunities available
Path of Growth
Path of growth is a big deal for real estate investors. That is because the housing market is one of the more difficult markets to invest in as an outsider -- after all, there is only so much land for people to fight over.
A smart investment (with the right advisor) can use this to their advantage by buying property or land along the path of growth -- or the area that will, assumedly, become prime real estate as a city continues to grow and expand.
That's why we at Hubilu Venture Corp focus so intently on metro expansion. Our investors have the opportunity to get in on the ground floor in areas that will soon be hot commodities, allowing them to reap the rewards at a very low cost.
Cash Flow Property
Cash flow properties are the dream of anyone interested in real estate investment opportunities. These are the properties that turn a profit each month. That means that the money you are making on the property must be greater than the amount you are paying on things like mortgage and operating expenses.
Typical examples of these properties include multi-family homes and student housing assets, as well as properties purchased at a low cost, such as the ones listed above. Consulting with an advisor can greatly increase the chance of you finding one of these jackpots.
Turn Key Property
A turn key property is one that has already been purchased, rehabilitated, and rented to a tenant. That means that the buyer will have the majority of the work done for them and can expect to see a positive cash flow from the moment a property is purchased.
Usually, to find a property like this, you will need to work with a real estate acquisition company that has performed the brunt of the labor involved.
The more you understand about real estate investment, the more successful you will be at speaking with advisors. Understanding these terms can open the door to any number of opportunities.