The Importance of Real Estate Education

Real estate is said to be one of the best investments that an individual can make, but if this is true, why do so many people fail at it? The truth is that an adequate real estate education is needed in order to help you out along the way because the real estate industry can truly turn on you in a real hurry if you are not prepared. Real estate investments are very likely to yield a generous return if the proper steps are taken, but too many people simply do not have the skills to make these deals happen. These are the people who did not take the time to get a real estate investing education and, therefore, will be more likely to fail when things do not go according to plan.

A proper education will prepare these investors for the problems that they will deal with along the way and give these people the skills that they need to work through these problems. In addition, this education teach innovative techniques that many more seasoned investors might not have, which will give these students an advantage in this very competitive industry. During the course, the real estate investor will also be introduced to lenders, builders, attorneys and bankers who can help them close the deals in an efficient manner. Having these connections could be the difference between succeeding and failing, so this is reason in itself to get a real estate education. These courses can even be broken down into specific types of investing, which can cut down on your classroom time and get you into the game even faster.

Even with a real estate investing education, there might be some bumps along the road, but this education will give the investor an idea of how to deal with these bumps without losing too much. There is so much more that goes into real estate investing than simply buying properly, developing it, and selling the finished product and all beginning investors need to know about these nuances before getting involved. Even more seasoned real estate investors are now taking these courses to refresh their memories and possibly even add new techniques to their knowledge base. All successful businesspeople will tell you to never stop learning and this education is one way to stay on top of things.

A real estate education is becoming almost mandatory for those who wish to become real estate investors because so many successful people have already been through these courses. Therefore, taking them can level the playing field somewhat because you will have access to the same techniques as people who have already made a lot of money. This field is not for everyone and it requires a great deal of risk when starting out, so it is extremely important that you are aware of these immense risks. This education will also help you make you aware of what you can lose during this process, which will allow you to make the best decision possible for yourself.

How to Jump Over The Most Common Real Estate Pitfalls

Is it really smart to invest in real estate? Who can know for sure? Like any forms of investment, there are risks to consider. When the good outweighs the bad, then perhaps, putting money in real estate is a good way to start building up your investment portfolio.

How can we know which way to go? Real estate experts have identified major pitfalls to avoid if investing in real estate is what appeals to you:

Do not bank on intuition.

Intuition is defined as “hindsight”, or an inherent “inner warning”, that oftentimes does not veer towards the positive but leans on the unexplainable feeling of doom. Most people would sell their homes based on a pessimistic feeling that the real estate market will soon crash, or the long-perceived real estate bubble is beginning to burst, hence the sooner they sell their properties at prices they can still command, the better.

Most likely, the worse case scenario never happens. Panic paralyzes the mind from thinking logically through a situation, thus, past experiences are forgotten. When real estate prices do slide, they don’t happen overnight. Unlike stock market positioning where prices can nose-dive drastically, real estate values may only suffer a decline, but not a total burn-out. Those who sell their homes with the prospect of making a profit on it while they still can, and purchase another, when real estate prices slide are heading towards being homeless, or into rental homes themselves.

Look at the odds: selling your home will displace your family for a while, it will cost you your agent’s commission, new mortgage rates may even be higher than the previous ones you were paying, the inconvenience of moving and leaving a familiar neighborhood, including other attendant costs. In the end, your calculator will register a deficit rather than profit!

Keep a discerning mind; do not believe everything you read.

That value of real estate properties will always go up is more of an illusion, rather than fact. This line of thought is dangerous as it wafts “speculative” investing – a financial stratagem that can be potentially profitable but very risky. This can imperil your good investment approaches. Real estate agents are moved by the prospect of earning commissions, naturally, they will outsell one another by sales pitches that can close the deal.

Quandary with Rentals.

Purchasing properties with the prospect of renting them out is sound, however when this is done during an economic slump, this may jeopardize your investment.

When real estate foreclosures are high, some investors take it as a good sign for renting out properties. Some may experience demand, but oftentimes people move away when they lose jobs. By the law of supply and demand, when there are few renters, rents will plunge.

Avoid risky loans like a plague!

Mortgage loans come in many options, can be all attractive, but caution should be exercised. As in all things, not everything that sparkles is gold.

Interest-Only Mortgages don’t demand payment of the principal while other mortgage options may require regular payment of the principal, or no payment at all during the early years. But interest rates can increase monthly and the increase can cut deeper on your mortgage. If sufficient payment is not made, your total mortgage loan will cost you more than what you home originally costs.

Keep your investment straight and you have more to keep.

Funding your other investment portfolios with the equity on your home is risky. Same is true with financing second or third mortgages on a property. In the event of payment defaults, equity on such property shall satisfy the loan taken from the first mortgage lender; and any remaining amount, shall be used to satisfy obligations with the subsequent lenders. This, however, rarely happens.

Study. Probe. Evaluate. Do not speculate.

Real Estate Investment is flourishing – a sign that it is a profitable venture. No wonder, real estate industry remains a formidable choice among those who want to get a crack on the fortune pie. Having identified the common pitfalls in real estate investing will narrow down the margin of those who ventured but lost, and jumpstart the prospects of those who want to make it big.

Helen L. Erickson

Sarasota Real Estate

Online Real Estate – Educational Opportunities

There are a number of online schools and training facilities that are available to provide students with the real estate education they need to start an exciting career. Real estate professionals work to provide various resources to their clients. These clients utilize agents to build, sell, and rent properties such as offices, houses, and more. Students can obtain an education to become a broker or agent, appraiser, or manager, and learn to appraise and inspect properties, rent and lease homes, manage agencies, and more. With proper training students can obtain the knowledge and skills to become the real estate professional they desire while earning the degree or certificate they need.

  • Real estate degrees and certificates allow students to become educated in the specific area of their choice. Degrees are available at an associates, bachelors, masters, and doctorates level for students looking to become entrepreneurs. Students who wish to obtain professional certification can also train online for their career of choice. Students can prepare for the career of their dreams with coursework provided by online degree and certificate programs. Online schools provide the opportunity to earn professional certification or a degree from the comforts of home by enrolling in an online program. Curriculum offered by educational institutes will vary depending on the school and career level.
  • There are a number of courses in real estate that students are offered through online educational programs. Much of the coursework will be the same for most real estate professionals, but specialized areas of study are also included in training and will depend on the type of career. They will complete coursework such as listing and document preparation, advertising, and more. An online program geared toward appraisers will include areas of study like finance and law. Students training for a career in property management may learn business administration, leasing, and more. Online courses allow students to learn how the industry works, and provide students with information about various real estate professions.
  • There are a number of related professions to choose from including real estate broker or agent, appraiser, property manager, and more. Professionals in this industry are trained to carry out a variety of tasks. Theses tasks depend on the career profession each student chooses to pursue. Property managers are trained to run the daily operations for apartments, shopping centers, offices, and more. Their job description may include the upkeep of outdoor areas, resolving complaints and maintenance orders, and more. Appraisers work with various financial institutions and clients to appraise residential and commercial property, research data, write reports, and other tasks. Students looking to become brokers will train to work with buyers and sellers. Brokers or agents are in charge of negotiating prices, advertising properties, submitting client offers and other related tasks. With an online school students can prepare for the career of their choice.

A variety of employment opportunities are available in the field and students can choose to earn their certificate or degree in more than one area. With an education in real estate students can work for existing agencies or start their own business. A number of states require that real estate professionals be licensed in order to provide their services. Licensed professionals in this field may be able to choose whether they work full or part time, and so can you with an education in real estate. Not all programs are required to carry full accreditation so students should look into this prior to enrollment. Accreditation is provided by agencies like the Distance Education and Training Council ( http://www.detc.org ) to provide proof that a quality education will be received.

DISCLAIMER: Above is a GENERIC OUTLINE and may or may not depict precise methods, courses and/or focuses related to ANY ONE specific school(s) that may or may not be advertised at PETAP.org.

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