Investing in real estate? It takes some research to do it well - check this PowerPoint "Investing in Real Estate by Ty Rhame" to see some good tips.

2. Real estate investment is lucrative. It
is an investment in an illiquid asset
and the risks are high. You need to
make some smart choices upfront
when buying investment property.

3. Real estate investment statistics
U.S.A. was ranked in the
number 1 position with
global commercial real estate
investors in 2012.

4. Real estate investment statistics
12% of all adult
Americans are actually
real estate investors.

5. Real estate investment statistics
3% of the U.S. population
of adults are active
real estate investors.

6. Real estate investment statistics
3.5 million will
buy 5 or more houses
in a year.

7. Real estate investment statistics
65% of the
3.5 million people
will continue to
invest in real estate.

8. Real estate investment statistics
$ 9.2 billion is spent
on renovating
real estate.

9. Office Property:
Investing in office property is the“flagship
investment” for many real estate owners. The
demand is directly proportional to the
increase in white collar jobs.
RISK: Office buildings have high operating
costs, so losing a tenant can have a substantial
impact on the returns for the property.
Ways to invest in real estate

10. Retail Property:
Retail properties range from large enclosed
shopping malls to single tenant buildings in
pedestrian zones. Location, visibility,
population density, population growth, and
relative income levels play acrucial role in the
demand for retail spaces.
RISK: Investing in retail property has a lower
return than office buildings.
Ways to invest in real estate

11. Industrial Property:
Includes buildings used for warehousing,
manufacturing, research, and development.
Lower operating cost than above two
counterparts.
RISK: Risk is lower. Losing a tenant can have
great impact.
Ways to invest in real estate

12. Ways to invest in real estate
Multi-family residential property:
Most stable return. Loss of a single tenant has
a minimal impact.
RISK: An increase in building operating costs
has to be borne by the property owner for
the duration of the lease.

13. Tips for investing in real estate
Real estate investment
is a business:
Treat it as such. Start by
developing a good business plan,
detailing the nuances of starting
and running your business, with
realistic goals over time frames.

14. Tips for investing in real estate
Check your financing ability
Determine your ability to finance
investment property. Make sure
that your total debt-to-monthly-
income ratio is low.

15. Tips for investing in real estate
Find a good bank or
mortgage broker:
A good bank or mortgage broker
is needed if you plan to finance
your investment. Advice from real
estate agents or other investors are
good sources of information.

16. Tips for investing in real estate
Look for for the best area to
buy properties:
Don’t make the mistake of limiting
the search to areas close to home:
expand it further where you might
get a better bargain.

17. Talk with other investors
about local real estate:
Join a real estate club in your area. They are
great places to network with other investors,
lenders, and repair service providers. You
can often pick up helpful advice about your
local market from other club members.
Consider joining an online investing forum
if there isn’t one for real estate.
Tips for investing in real estate

18. Tips for investing in real estate
Find a good realtor to
help you locate
properties:
number of investment
properties, and also understands
concepts such as return on
investment (ROI), net operating
income (NOI), and debt service.