M
miler
New Member
Real estate is a multidisciplinary field, which means new investors must have a basic knowledge of number of academic disciplines to be competent in real estate. One should know the real estate law of his state, federal income tax law, property management, real estate finance, real estate leasing, real estate
sales, real estate appraisal, construction issues and finally the security laws. Some people are ignorant in such stuffs and say we can hire people who have
knowledge but it won’t work that way. In order to succeed investor should have to have considerable expertise of his own. But he can hire people for his
dividend chores. But if a person is a complete ignorant about the basics the he won’t be able to hire a person for a particular job, because he don’t know what
kind of person he should hire for that job like federal income tax law and you won’t be able to evaluate that guy’s performance.
People should not invest in real estate unless they are quite confident about their knowledge and are able to estimate that how much they will get after
investment? When they will get the profit of their investment? What is the best way to advertise? And how much sure he is of getting that profit? In most
cases the money to be received now has more worth than the money received later because of three factors inflation, risk and opportunity cost. Receiving
money in future is risky because of recession, unemployment and bankruptcy etc. The longer you have to wait the greater the chances that something may
occur to prevent you from getting your money. So time matters a lot in investments. If you get your money in the form of lump in front of you then you can invest it immediately on other areas. Thus the basic knowledge is very important for a beginner to invest his money and get more profit.
sales, real estate appraisal, construction issues and finally the security laws. Some people are ignorant in such stuffs and say we can hire people who have
knowledge but it won’t work that way. In order to succeed investor should have to have considerable expertise of his own. But he can hire people for his
dividend chores. But if a person is a complete ignorant about the basics the he won’t be able to hire a person for a particular job, because he don’t know what
kind of person he should hire for that job like federal income tax law and you won’t be able to evaluate that guy’s performance.
People should not invest in real estate unless they are quite confident about their knowledge and are able to estimate that how much they will get after
investment? When they will get the profit of their investment? What is the best way to advertise? And how much sure he is of getting that profit? In most
cases the money to be received now has more worth than the money received later because of three factors inflation, risk and opportunity cost. Receiving
money in future is risky because of recession, unemployment and bankruptcy etc. The longer you have to wait the greater the chances that something may
occur to prevent you from getting your money. So time matters a lot in investments. If you get your money in the form of lump in front of you then you can invest it immediately on other areas. Thus the basic knowledge is very important for a beginner to invest his money and get more profit.
