An Investment Advisor Reps View On Real Estate

Having worked in the financial services industry over the last six years, I have often been asked my opinion of investing in real estate. I am always intrigued at their surprise at my encouragement to invest in real estate. Maybe they are used to someone only promoting the product or service they sell, and because I am not a real estate agent, they do not expect me to promote it.

The truth about investing in both the stock market and real estate is that if you invest right, both can be extremely profitable. Over the last ten to fifteen years we have witnessed some fantastic numbers. In the late nineties the stock market was surging. People were selling their real estate to put their money in the market. Then starting on the year 2000 when the stock market began its three year crash, people began pulling money out of the market, and purchasing real estate. What we saw in the next few years in the real estate market was amazing. It was looking like exponential growth. I saw it in my own town home. I paid one hundred and fifty thousand for it, and at one point, our neighbors were asking two hundred and twenty thousand.

Is real estate a good investment? Absolutely! But, there is always a but, you need to know what you are doing. The challenge in the real estate investment world is trying to read through the agenda of the realtor who gets a hefty commission on the property he is promoting. The real challenge with any investing is to think about the investment logically, not emotionally.

Investing in the stock market is easy. You simply make the purchase. Real estate comes with extra responsibility. Typically investors use debt to leverage the purchase. If you add the costs together and subtract that from the income the property will generate, you want to have a positive number. You also need to keep in mind all the risks. What happens if you have a vacancy for longer than expected.? What happens if you cannot resell it as planned? Have you factored in the costs of repairs? Who will take care of repairs? An obvious solution is to take advantage of a commercial property management services company. I also recommend going through the numbers with a seasoned investor before signing on the dotted line.

About the Author:
Symbiot, Inc. (http://www.pipestone.biz/) is a commercial property management services. Art Gib is a freelance writer.

Article Originally Published On: http://www.articlesnatch.com

Tags: commercial property management services

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