October 22, 2010

Buying real estate investments has always been one of the best ways to build wealth – but if you’re a new investor, it can be confusing when you’re first starting out. These are two of the most commonly asked questions. 2

When buying real estate investments, what type of property should I start out with? 2

Most new investors are still building up capital with which to start investing. So the first type of property you’ll want to start out with is one that will allow you to make money from your property right away. Landlording will require you to buy and hold property, so it’s probably best to save that for later (if ever), and buy properties you can flip right away for a profit.

There are a lot of ways you can go about buying real estate investments with the intent to quickly re-sell, but tax sale property beats all other types hands-down. You’ll rarely find any other type of property that is free from a mortgage (free and clear, other than the taxes). And there’s a LOT of tax sale property in a recession, so finding a suitable property to buy is easier right now than ever before. For more information visit Estate Agents Johannesburg

How can I start buying real estate investments if I don’t have a lot of money?

Tax sale properties are great in this respect as well. Properties that are in mortgage foreclosure are usually rife with liens in addition to the mortgage, and the owners aren’t thrilled to be selling. Tax sale properties, on the other hand, are often owned by people who are simply tired of owning the property for whatever reason. They inherited it, they owned it as a failed investment – whatever the reason, often they have made the choice to let it go delinquent.

What this means for you is that if you approach these owners at the right point in the tax sale process – after the property has been “sold” at tax sale – you can often pick up the deeds to their properties for as little as a few hundred dollars. They don’t want it anyway!

If you’re a new investor without a lot of cash, this can be the best way to get started. Very few other ways of property investing offer any opportunity for those that don’t have capital. With the inventory of tax sale properties continuing to be on the rise, this is the time to explore this avenue for creating wealth, if you’re really serious about buying real estate investments.

The current foreclosure rate won’t last forever – take advantage of it now. For more information visit property for sale

Article done by Maggie Dawson Article Source: http://EzineArticles.com/?expert=Maggie_Dawson