Real estate for investment is still the best long term wealth building opportunity based on expert analysis of last week?s announcement that the Fed will continue Zero Inflation Rate Policy (ZIRP) through 2014. The Fed also stated an inflation target of 2%. However, they are about out of ways to achieve either.
Here?s an excerpt on the subject by Tyler Durden from ZeroHedge:
?What happens when there is no explicit back stop to the long end? Is this the reason why Bill Gross [co-founded of Pacific Investment Management and manager of the $252.2 billion Total Return Fund] yesterday said that he fully expects much more check writing by the Fed for the next ?12, 24, 36 months.? And how can it not: we don?t have a market of rational players any more??
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According to Barclay?s the Fed has bought 91% of 20-30 year maturity U.S. debt to assure interest rates remain at zero through 2014. Of course, that was all with funny money printed from thin air. At that rate, there is no open market influence on interest rates. All of the real money that would have bought that debt is now in the economy. Something has to give and it will be inflation.
Real estate for Investment ? A Real Investing Opportunity
Real estate for investment is paying 8% and up today. It?s fully secured with a first mortgage on the property. You simply won?t find a better return than real estate for investment as long as the Fed rides rough shod over interest rates.
There are many ways to hold real estate for investment. One of the most popular is buying it outright and becoming a landlord. When you?re the landlord holding real estate for investment, you get to clean the toilet when your tenant moves out. Being a landlord holding real estate for investment also means no income until a new tenant moves in. And it costs you real money getting it ready for a new tenant.
Real estate for investment in a first mortgage is better than owning and cleaning the toilet bowls in rentals. Photo courtesy of: www.flickr.com/photos/sercasey/278428764
When investors are ready to hold real estate for investment, they don?t often think about the promissory note as the best way of holding real estate for investment. When you hold a promissory note as real estate for investment, you have a high yield passive income. Instead of cleaning toilets, you collect and deposit the homeowner?s monthly mortgage check while having the security of real estate for investment.
Whether you are looking at real estate for investment with your self directed IRA, 401K, or after tax savings, you?ll be better of with real estate for investment than in a zero interest savings account or the high risks that come from Wall Street investing. With the Fed zero interest policy firmly in place through 2014, real estate for investment is the best option you probably have for at least the next several years.
Holding real estate for investment with a first mortgage helps others become homeowners. Photo courtesy of: www.flickr.com/photos/stevendepolo/3774068738
Real Estate for Investment in Commercial Properties
If you do want to own the property for real estate for investment, you should consider commercial properties. Unlike residential property, you?re not likely to get 2 o?clock in the morning phone calls. Many commercial rentals make the tenant responsible for most repairs and maintenance. However, if you get into commercial real estate for investment, it is more complex. You?ll need to become familiar with phrases like net operating income and cap rates.
Of course, just because you want to be in commercial real estate for investment, doesn?t mean you have to be the owner. You can still hold the promissory note for commercial real estate for investment. Or you can both run your own business and have tenants in a strip mall. Two of the most profitable ways to hold commercial real estate for investment is apartment buildings and medical facilities. Both hold great promise in the commercial real estate for investment sector for years to come.
Bottom line is with interest rates at zero for years to come, real estate for investment is one of the best alternatives you have. Please leave your comments about real estate for investment below.
written by Richard in Free Reports
Put your email and name here and we?ll give you instant access to this report.Tags: interest rates, real estate, Pacific Investment Management, commercial real estate
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