Investing in real estate property has become a trending way to earn a profit for the last 50 years. It is important to learn the different property purchasing options and learn how one can really earn from real estate property investing.

A real estate purchase option is a type of contract that gives a person exclusive rights to buy a certain piece of real estate. The seller can’t sell the real estate property to any other buyer, but the buyer with the option has no obligation to buy the property. It is a type of reservation that lasts for 6 months to one year. This is best if you do not have enough funds yet to buy a real estate property you badly want. This way, you can secure a high-investment property at a low risk.

Lease Option

This is the agreement between the tenant of a rental real estate property and the renter where the renter can buy the rented property after the predetermined rental period. This type of option has many aspects, which is why it is best to have a knowledgeable lawyer to assist you with this deal.

Real Estate Investment Trust

When a corporation or a trust purchases real estate property using investors’ money, a real estate investment trust (REIT) is made. This is sold and bought on major exchanges like ordinary stocks. Taxation is more advantageous with REITs compared to buying real estate properties as a regular company.

Real Estate Limited Liability Companies

More investors prefer to use Limited Liability Companies (LLCs) because it has more benefits that can protect personal assets. Its main advantage is that the liability of the members is limited to the financial investment they placed on the table. This means if the worst happens, the investors will only lose the assets held by the LLC at most. All the members or the owners of the LLC are shielded from each other’s individual liabilities, specifically debts and other obligations.

Related Posts
Why should you buy investment property under your own name?
Because it is your investment, you can always choose where to name your investment property. If you so decide to put your property under your name, below are the advantages you ...
READ MORE
What is involved in filing for bankruptcy
People who are having problems paying their financial obligations sometimes consider bankruptcy to acquire comfort from selection initiatives, remove some or all of their financial obligations or rebuild their debt ...
READ MORE
Basics of buying a house
Real estate transactions can be intimidating at times. You might encounter pitfalls that will make you lose money as you buy your first house. This is why hiring an attorney ...
READ MORE
Buying or Selling real estate property
If you are not an expert in buying or selling a real estate property, you need the help of a sales agent to walk you through the entire process. You ...
READ MORE
Discuss major real estate laws in the U.S.
Real estate laws has a broad legal area coverage regulated by state law, federal law, and common law. This law includes land and any immovable structures attached to that land ...
READ MORE
Rules for Landlord while Evicting a Tenant
To file tenant eviction case against a tenant, make sure you have served a written notice, especially because it is part of the termination statute of the state. If the ...
READ MORE
How to win Child Custody
Parents who desire to win child custody in the court should first understand the child custody laws in their jurisdiction. The key to win child custody is proving that you ...
READ MORE
Expenses in a DUI case
DUI case or Intoxicated driving is the act of working or generating an automobile while under the impact of liquor or medication to the level that psychological and engine skills ...
READ MORE
Divorce Legal Services
Divorce formally dissolves the legal marriage. The married couples do not have the constitutional rights to proceed for the divorce but the state laws permit the couples to divorce in ...
READ MORE
Dealing with your insurance company
If your house gets damaged by fire or other disasters, you can look to your insurance company for reimbursements. But your success of getting relief from your insurance company may ...
READ MORE
Why should you buy investment property under your
What is involved in filing for bankruptcy
Basics of buying a house
Buying or Selling real estate property
Discuss major real estate laws in the U.S.
Rules for landlord while tenant eviction
How to win Child Custody
Expenses in a DUI case
Appearing in Divorce Court
Dealing with your insurance company