Real Estate

Real Estate

Real estate is a property of any type, building on the land, natural resources of land, or any attached benefit with the property.

To learn about the real estate, you should learn about the critical and significant basics of the real estate, in this present era this business is overgrowing, and the investors are earning the handsome amount from this business. The real estate business is based on some crucial steps.

  1. Property
  2. Mortgage
  3. Lease
  4. PITI
  5. Buy low/ Sell high

If you want to buy a home, which is a family based home, but you don't have the net amount, let's take an example that its demand is 150k USD, you can apply for the mortgage in the bank. The bank, after verifying all the mandatory things gives you the money on some interest fixed by the bank. This will help you to buy your property even you have no personal amount.

Now the installation of the bank is 800 USD, and to fulfill this, you give your home on lease and get 1000USD every month. This will help you to give installment of bank and also giving you the profit from your property; this is called cash flow, which you get every month from your property.

The other important thing is PITI, which means Principle, Interest, Tax & Insurance. The bank will collect these all things in their installment fee, and insurance will save you from any miss coincident e.g. death, flood, earth quick, etc

The other things need to learn in real estate that the investor should buy low the property and then sell on the high amount, this will give you the best taste of this business. Every investor should show patience in selling the property and also in buying. You should buy the property less than his market value; this will increase your equity. The equity is the difference in the amount between the market value of a property and the price on which you brought the property. e.g. the market value of a property is 200kUSD, but you brought on 150kUSD, then 50k will be your equity in it.

This is the simple process and best way to learn about the real estate to understand its essential terms and their worth on practical grounds. Every investor, no matter on which level he is investing, he adopts this procedure to invest and owns the property, and this is the circle in real estate, which helps everyone to achieve their goals and to owns the properties.