Читать книгу Investing in Income Properties - Rosen Kenneth D. - Страница 6

A notable portion of the population has been through at least one real estate negotiation – buying a home – and many have changed their residences more than once. Despite that, too often people don't understand the nuts and bolts of a real estate deal. That's not entirely their fault. Real estate is not taught on a regular basis in high schools or many universities. And, in recent years, financing tools have changed dramatically. Now there are many different kinds of mortgages and a long laundry list of mortgage terms. On top of that, there is an abundance of real estate advice floating around, much of it misleading or just plain incorrect.

In the case of commercial real estate investment, the old adage is wrong, because what you don't know can hurt you. Fortunately it's not hard to learn the fundamental principles of how real estate transactions take place and the terms used within the industry. (The glossary at the end of this book can help.) Easy as it may be to learn, however, you won't pick up the essentials when you're already in the middle of a deal. It is imperative that you have a grasp of real estate basics before you get going on your own investment portfolio.

The most important part of this book is the Big Six formula, the core concepts that will put you on the path to riches. However, before we jump into that formula for success, we're going to review the nitty–gritty of buying properties, the terminology you'll need to understand, and other essential workings within the world of real estate investment. Chapters 1 through 4 tackle these, starting with an explanation of why real estate offers greater wealth-building opportunities – with much less risk – than stocks and other investment vehicles. We'll also look at the sequence of steps in a real estate deal, the expert professionals you'll need on your real estate team, and, finally, how you can access enough money to get started.

Certain investment elements – such as zoning laws, contractual agreements, and construction standards – will vary from state to state and even city to city. But the basics remain the same everywhere in the country. Before you risk your investment, take some time to clearly understand what you're doing. If you do, you've set your stage for success.