Buying an investment property, you may have thought about it at one point or another: purchasing a rental home, condo, or townhome, and “making

the plunge” by investing in real estate. Today, let’s took a look at some of the benefits of investing in real estate.

First of all, when you buy rental property, realize that over time, real estate surely has gone and will continue to go up in value. Granted, the last few

years have been extremely difficult with many markets seeing prices slide. However, over time, real estate has slowly but surely gone up in value.

And there is no reason to believe that long term, over time, this trend will not continue. As an investor, you will be able to make money on the future

appreciation of your property.

Secondly, you often times are able to make monthly cash flow. The tenant is paying you monthly rent, and that monthly rent pays off all of your

expenses on the property (mortgage, taxes, and insurance.) What is left over, is simply called cash flow.

Third of all, you will be paying your loan down over time. Or should we say, your tenant will be paying down your loan for you on that property over

time. Often times, borrowers are able to put a 30 year fixed rate loan on a property (and still have it cash flow.) As a result, each month, your

mortgage balance is decreasing. If you put a 15 year mortgage on a property, you will even be paying it down more quickly of course.

Lastly, you are able to depreciate that rental property, thus saving you on your taxes each year. This is one of the most often time missed benefits.

Depending upon the ability of an investor to qualify for these tax benefits (income, etc), the tax benefits can truly be outstanding.

In conclusion, there are four primary benefits to buying investment property: cash flow, principal pay down, appreciation and tax benefits. Realize that

historically, investing in real estate has proven to be an awesome long term wealth building strategy. In spite of this recent real estate market and

correction, there is no reason to believe things will not continue in a positive direction. There are obviously no quick solutions, but real estate

investing has helped make many “average joes” from around the country into millionaires.

Of course you can run down to the shopping mall and find it stuffed with pre made gift baskets for Mother’s Day. Or you could take the time to help your child put together a fun basket especially for their mother.

Most mothers do the shopping in the family. If you have a close friend who has children, think about setting a budget for the Mother’s Day present and then switching children. You take your friend’s child out shopping with the pre set budget and she takes yours.

Bill Poulos has developed a comprehensive course designed exclusively for use with Exchange Traded Funds. ETF Profit Driver consists of four trading methods that, when used with ETF’s, offer earnings potential that will make you question why your capital is tied up in mutual funds.

Based on a study conducted a few years back, about 10% of all long-term mutual-fund assets were held in index funds. Those funds offer comparatively low fees track indexes familiar to most investors. The drawback of index fund investing has been holding those positions during market downturns.

People who are involved in active buying and selling of real estate properties to earn profits (commission) are called realtors or more commonly had known as realestate agents. You could choose to be an agent of a seller or a buyer or could be both-a dual agent. Another option would be a transaction agent.

A sellers agent works on behalf of his clients to sell the real estate property at the best possible market value. While on the other hand, a buyers agent works in the bestinterest of clients who wish to buy real estate property, which is within their budget. Agents are usually paid a fair share from the settlement of transaction as theircommission. In a situation when a sellers agent also performs the role of a buyers agent in a single transaction, he is considered as a dual agent. The difference betweena buyers or sellers agent and a transaction agent is that the former work on contractual basis with their clients while the latter only agrees to work in the best interest oftheir customers. Whatever the choice, every agent is expected to be fair and honest in dispensing his duties towards his clients and dealings with the other agents.

Agencies that appoint different sales associates are called designated agencies. Real estate companies and its associates are usually members of a national or local bodyof legal associations, which govern their moral code of conduct and professional ethics. A realtor may accredit his business with professional degrees and educationalprograms related to listing, buying or selling, investment, and taxes.

An agent can be involved in residential as well as commercial real estate dealings. He acts as a negotiator and an intermediator between real estate investors. They alsoact as advocates to their clients and give appropriate advice and provide services on related issues like finance and mortgage loans. An agent or a broker plays the keyrole in the real estate industry. He not only helps the clients to market the property at a profitable rate or buy a real estate property at a competitive price but alsofacilitates other services like leasing, appraisal of properties (only if he is licensed as an appraiser), necessary documentation, comparative market analysis andauctioning of the property.

Although the real estate agents represent and act on behalf of their clients, they do not have the authority to sign the real estate deed. Only the respective buyers orsellers are considered as legal signatories of the deed. In order to play the role of a real estate agent successfully, the broker must make the most of his other businessskills like negotiating a deal which is beneficial to everyone and being able to convince the client of the offer.

To earn his commission, an agent must be able to find a potential buyer for his clients property or vice-versa. To execute this, he may have to employ different methodsof advertising the property to the public such as listing the property on a Multiple Listing Service, holding an open house, ensuring that the buyers have the financialresources, communicating and scheduling appointments with prospective buyers or sellers.

An agent earns his reward for the services provided by him, in the form of commission, which are usually negotiable and depends on the success and satisfactorysettlement of the deal.

It is possible to buy a new home without resorting to getting a mortgage loan. It is not the easiest or quickest route to take. Buying a home with cash requires years of planning, starting small, a willingness to be flexible, and patience to wait on the end result.

Buying a home was once something that was only done with cash. It wasn’t until recent history (just after WWII) that mortgage loans became the normal way of purchasing a home. The lending industry has also loosened its practices, making it easier for more people to borrow more money – resulting in an ever increasing housing market.

Even with these artificially high prices, it doesn’t mean that a mortgage loan is the only route to take. It is still possible to buy a home for cash. The first step is to save. The sooner you start, the quicker you will get there. Find the least expensive place you can and rent for a while. Save the difference towards your first home.

Once you have a sufficient amount saved, purchase a small home within your budget. Remember that location is always vital, but also look for a home with strong bones, some character, and features that set it apart (say a large yard or the age and quality of the build). Buy, decorate, and do any remodeling of this start home with the intention of turning around and selling it in the future. Start saving your rent and other money once again.

Keep and eye on the housing market. When the market slows down and becomes a buyers market (when the sellers are eager to sell) AND when you have saved up another chunk of money, it is time to start considering a trade up. Contact a real estate agent in your area (you may have to shop around, not all of them are quick to pick up the smaller homes). Let them know your plan. Once you find a buyer for your home, start looking for a larger home (with the same qualities as before) that is within the price of your proceeds and savings. Keep in mind that because you are paying cash and won’t have to go through the time and process of getting a mortgage loan, you will probably have more negotiating room than other buyers.

Continue this process until you find the house of your dreams. You will be able to move into the home with out a mountain of debt and without ever having to negotiate the mortgage loan industry. It will take some time, some patience, and some flexibility, but it will be more than worth it in the long run.