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Foreclosed Real Estate - A Good Real Investment Option

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By : Syrous Pejman    99 or more times read
Clearly the idea of an investment is to get the best range of yield possible. If your investment does not provide a good rate of gain then you might as well leave your money in a regular savings account. The higher the potential gain an investment has the higher the risk involved. Obviously there are no fool proof investments so it is essential to be able to identify a real investment opportunity from a scam that will just take your money.

While a real investment opportunity is by definition any investment device that provides a return on your initial investment, a high yield investment is actually what is being implied by with the connotation of a real investment opportunity. Actually, any vehicle that returns a gain is a real investment opportunity; this may consist of an opportunity to open a business with a friend or an associate, or may be less participatory such as purchasing stocks, bonds, or commodity futures.

Venture capital is one method of investment that has potential for a high rate of return, but it usually necessitates investing more than just money into the venture. In most cases this will involve some form of participation on your part. If you prefer to gain passively without direct involvement or physical work, then you may choose investing in commodities and futures.

Ideally if you are interested in high yield returns then you should invest only your risk capital, in other words only invest what you would be willing to risk in gambling. Investing in high yield investments with more than you can afford to lose is not just dangerous, it is foolish. Obviously your goal is to gain the maximum possible amount of profit without being financially bankrupt.

As a smart investor you should be suspicious of any opportunity that calls itself a real investment opportunity but claims very high returns more than the industry averages. In fact you may consider that any investment is actually a high risk. Even in traditional forms of investments such as stocks and bonds, the potential of loss is high.

While real estate has long been considered a viable investment that is highly likely to provide an increase, real estate has the potential for loss as well. This is particularly true in a market that is unstable. However even in a period of instability it is possible to receive a high rate of return in the real estate market. Purchasing foreclosed properties is one method of real estate investing that has proven to be a real investment opportunity in recent times.

This aspect of real estate has been very beneficial for many individuals. However taking advantage of a foreclosed property requires purchasing a property lower than the market value and then be able to turn it over after small additional repairs and modifications, at a high enough price to reimburse your initial investment and the additional expenses you incurred in preparing it for resale.

If you can get lucky enough to find a property that is listed as a short sale you may be able to turn it into a real investment opportunity. If your credit is not stable, a short sale can be difficult to procure. In a short sale the offer placed on a property not only needs to be accepted by the seller but it must also be approved by the financial institution that holds the note on the property. The reason for this is because a short sale shows that the asking price is below what is owed on the note by the seller, accordingly the lending institution is granting them to sell the property for less than what they owe on it.
The author, Syrous Pejman is an online business expert and online investing advisor. He has more than 10 years of experience in the field. He recommends investors to have a look at modern investment opportunities (Forex, mutual funds, venture capitals, high yield stocks…) besides traditional investment. His website introduces some of the best real online investment opportunities.

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