Sunday, February 11, 2007

Long Term Real Estate Investment

For those who are not just looking for a quick return, long term investing provides a viable option with a potential for high profit. Long term investment requires much more effort and commitment to maintenance than a short term real estate investment, where one just does enough rehabilitation work to turn a profit quickly. Long term investors purchase a property in an area where the long term appreciation rate appears favorable and rent the property to tenants, acting as landlord and taking care of all the maintenance that the property requires, while profiting from the monthly rent checks while waiting for the property value to rise enough to sell it for profit. As with short term real estate investment, there are several factors that must be considered in order to secure a successful investment.

Short Term Real Estate Investment

With the rapidly appreciating market, short term investors see great profits from merely buying a home and reselling it after only a short ownership term. The wait for profit potential is definitely shorter than any other investment market today, and the probability for high return is almost a guarantee. In only six months, many investors today are seeing $10,000 profit on initial investments of less than $50,000.

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