Here we have discussed about the features of real estate investing and its ways which will provide the help to improve the profitability and increase your balance sheet and hedging against inflation.

1. By: Joseph Grinkorn
Essential Features
That Make Real
Estate Investing
Profitable

2. Introduction
• From time to time individuals attempting to make up their minds the place to
place their cash ask me if actual property ventures are kind of worthwhile, in
comparison with different companies alternatives round.
• My response is all the time that aside from its potential for yielding vital
income, investing in actual property typically confers lengthy phrases
advantages.

3. The Most Important Factors for
Investing in Real Estate
• Location of the Property
• Valuation of the Property
• Proven to be Profitable Even During
a Recession
• Real Estate Investments Are Immune
to Inflation
• Real Estate is Uniquely for Being
Universally Acceptable as Collateral,
Towards Securing Funding from
Banks
• Real Estate investment allows the
use of other people’s money

4. Location of the Property
• In real estate investing, one phrase
that you’ll most definitely hear is
location, location, location! Where
the investment property is located
affects everything related to it from
the rental income the property
investor can charge, through the
operation costs and the cash flow, to
the appreciation – all of which are
other factors that determine the
profitability of investment properties!

5. • The next important factor which determines the profitability of the investment
properties is the expected cash flow. It goes without saying that the main goal of
every real estate investor is making money from the investment property. To start
making money, property investors must invest in positive cash flow properties.
Positive cash flow is when the incoming cash flow outweighs the outgoing cash flow
spent on managing and maintaining the investment property. If a real estate
investor’s cash flow is negative, he/she is losing money instead of making money
from the rental property – which is obviously something no real estate investor
desires!

6. Proven to be Profitable Even
During a Recession
• When the country is facing
recession, many clients ask the real
estate consultant regarding which
could be the best way to invest
money. The consultant has
recommended that the real estate
investment is a secure way to invest
money. The consultant certifies that
the other businesses can come
down over a period of time but the
land value always appreciates.

8. Real Estate Investments Are Immune to
Inflation
• Inflation usually has harsh effects
on conventional investments, but
the interests of viable investment
options are protected during
inflation. Pressures of inflation have
a positive co-relation with real
estate values. So the rental rates go
up when there is inflation. The real
estate owners thus offer
competitive rates matching the
effects of inflation. One way to
cushion against the effects of
inflation is to hike the rental rates.
So the losses induced by inflation
does not affect the realty sector.

9. Real Estate investment allows the use of
other people’s money
• Real estate is a physical property which is referred to as a hard asset. This is very
attractive for financiers who have money to invest. Real estate payments are made
either using cash or by mortgage financing. In the second case, the money can be
arranged in low financial sums, during the duration of these payments the value of the
property continues to increase. Thus those financing the acquisition feel more safe.

11. • Joseph Grinkorn is a successful entrepreneur
who provides the help in real estate
marketing, social media and commercial real
estate.