Real Estate Investing

Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent. If these factors are not well understood and managed by the investor, real estate becomes a risky investment. The primary cause of investment failure for real estate is that the investor goes into negative cash flow for a period of time that is not sustainable, often forcing them to resell the property at a loss or go into insolvency.

Flipping houses is a great way to make money. But this process is not for the faint of heart. Make sure you have a knowledgeable contractor and a reliable crew working with your best interest in mind and always get an inspection before purchasing.

If you plan to become a landlord make sure that you screen your tenants by doing a credit and criminal background check, always get a deposit equal to the first month’s rent in advance and use a ligament lease agreement not a hand shake.  
Johnny Williams
Johnny Williams
Broker Associate
2106 East State Highway 114 Ste 101 Southlake TX 76092