Investing in real estate with a loan

[Sotherefore]

On daily basis there are thousands of people that are making plans to invest in real estate , some people are always interested to invest the money they have worked hard to ean while others do not really have the money but are looking for an opportunity to invest so that they won't be left behind in the future, best on the fact that the value of any property you are investing on will always increase for you to sell it out with profit.

Most people who are ready to invest but don't have money might be thinking to invest in it with a loan since it can offers people an opportunity for them to make profit after a certain period of time, then if they are able to make profit they can easily pay back the loan they have collected and still have something left for them to continue their investment journey.

But it seems a lot of people are not really interested to invest in properties and in real estate with loans because they consider it to be too risky.

Based on the explanation I have given up there I think it is quite possible for people to invest in real estate with a loan since it is quite possible for them to generate 100% of their money within a period of time.

 

[btaliat]

This is one of the investments that I can vouch and encourage people to obtain loan for. There is much high probability of getting a huge returns if well managed.

The only advice I will give to whoever wish to obtain loan for this kind of investment is that the person should go for house investment rather than for land investment.

The reason for the advice above is that investment in house is that it is always short term. This means there is high probability of getting the interest and the capital in a short time.

We only need to study the area to know the kind of house that people love renting. This will make the house to he rented out as quick as possible.

 

[Sotherefore]

This is one of the investments that I can vouch and encourage people to obtain loan for. There is much high probability of getting a huge returns if well managed.

The only advice I will give to whoever wish to obtain loan for this kind of investment is that the person should go for house investment rather than for land investment.

The reason for the advice above is that investment in house is that it is always short term. This means there is high probability of getting the interest and the capital in a short time.

We only need to study the area to know the kind of house that people love renting. This will make the house to he rented out as quick as possible.

House Investment ? You might not likely be able to get a loan to a point of buying a house , well I don't know of any financial institution that may likely give you a loan to a point of using it to engage in real estate up to that extent , probably I believe people may be able to get a loan to buy a lands maybe for long-term purposes.

If an investor have to invest in houses then the person must have some extra money to add up to invest in this property because the loan given to you may not really be enough for you to get all the required property you have just mention.

If an investor can be able to invest in houses I believe it will be more of a greater benefit because the houses can be rented out for people to live in and at the same time you can still get some money to pay back the loan you have collected, after the payment is over you can now become the original owner of the property.

If this is arranged perfectly a lot of people will be getting loans to buy houses and later pay it back back with the rent of the building . but I believe it may not really be easy as we said here because if it was easy a lot of people will have done this

 

[eldavis]

I don't think it's possible and even if it's actually possible, I would not advice anyone to make use of a loan in building a house or purchasing one. Loans are given out with the expectation that it would be paid back within a specific period of time. What happens if you are not able to generate money form the house to pay back within the time frame?

 

[Sotherefore]

I don't think it's possible and even if it's actually possible, I would not advice anyone to make use of a loan in building a house or purchasing one. Loans are given out with the expectation that it would be paid back within a specific period of time. What happens if you are not able to generate money form the house to pay back within the time frame?

I understand your point perfectly but there are some business organisation or maybe a real estate organisation that build houses and sell it for people, what they will do is that they will build one bedroom flat or two bedroom flat in a particular location and give it out to Buyers on credit, what will happen here is that you are to pay back this money as long as you are still in existence not minding the years.

I believe if such opportunity is available a lot of people could have used this opportunity to acquire as many houses as possible ,with this they can rent out these buildings to people who are interested to live in them and the yearly payment can be used to pay back the money for the building.

In this case I wouldn't even see anything wrong with this but most real estate organisation are not doing it so it is almost impossible, generally a person can get a loan to buy a house or a building only when the person have a reliable source of income.

 

[Kendy]

Real estate investment has really gone global and everyone would like to have a share of its taste but this does not warrant taking of loans without having a backup plan of repayment incase an unforseen event happens along the line. Taking loans to invest in real estate most especially lands is a good investment because you can always resale it and get your profits but inasmuch as lands appreciates in nature, it does not mean it would appreciate within a twinkle of an eye. You should ascertain how much leverage you have to repay the loan, and I do not think a bank can give out loan to excess a space of 365days, now, you should ascertain if the land would appreciate during the duration and at which worth. You should also ascertain if the profit would've substantial in the space of the stipulated time. In real estate investment, it is good to start with your personal finance to avoid pressure. There are cases where you might purchase government lands without an insight and you would forfeit it without even an iota of compensation and this is because, it would be solely regarded as infringement, violation and trespassing on government property.

 

[cmoneyspinner]

In USA practically everybody who wants to invest in real estate takes out a loan or establishes a line of credit in order to finance their property purchase. At this point in my life I am no longer interested in extending myself that way. I an giving serious thought to REITs (Real Estate Investment Trust). This is a safer way of investing in real estate and you don't have to worry about building maintenance, paying utilities, etc.
5 Types of REITs & How to Invest in Them