High Returns From Real Estate Investment Property

Real estate investment, more appropriately real estate investment property, involves the buying, possessing, management, rental or sale of residential real estate as a part of an overall real estate investment plan. The profit gained on such property is used to fund investments in other commercial real estate properties. Some real estate investment strategies involve short selling residential real estate property to raise funds for other investments. A good example of this is flipping properties in areas with high foreclosure rates. While such actions are considered risky by most investors, those who are well versed in the real estate investment techniques can earn substantial profits without much risk.

The real estate investment plan includes one or more physical assets that can be bought, including land, building and real estate contents (also known as the physical assets). Investments in these assets are made on the basis of future earning potential. Other types of assets may also be included in the real estate investment plan, including stocks, bonds, derivatives, personal property and intangible assets. The term ‘asset’ does not include goodwill or other intangibles.

Most real estate investment programs comprise buying low and selling high. Therefore, the target of the investor is to buy a property for which the future prospect offers high returns. In order to determine the value of the property and make an offer, the investor usually needs information about the location, condition and neighborhood of the property, the price, income and other factors. Assessor’s appraisals are also important in this process. The investor usually makes a series of short-term investments, using cash, to determine the value of the property, to determine whether it meets the criteria of investment programs for making high returns.