Real Estate Investing â?? 5 Primary Reasons it Will Help You Create Ultimate Wealth & Financial Freedom
Posted on 26. Jan, 2010 by admin in general
Itâ??s a fact that real estate â?? more specifically, real estate investing – has been the investment vehicle that has created more wealth than any other financial instrument in the history of humankind.There are 26 different reasons I can give you to as to why real estate investing is the IDEAL business for youâ?¦but for now, Iâ??ll give you the top 5 reasons. In fact, the word â??idealâ? is actually an acronym for the top 5 reasons why real estate investing is an excellent way to create ultimate wealth and freedom â?? unfortunately, I canâ??t claim that I came up with the acronym because I heard this from another great real estate investor, but itâ??s so good, I want to share it with you.I â?? Income: You can earn a full time corporate salary in just one or two deals. Interestingly enough, I learned this powerful principle when I did my first dealâ?¦all told I spent less than six hours looking for an investment property, contracting and closing on it, and had an immediate equity position that rivaled more than half of my corporate salary. The message was clear, I was going to be investing in real estate full time no matter what it took.D â?? Deductions: This is the only business in the U.S. and Canada that affords you to take advantage of the highest business deductions, personal deductions, and real property tax breaks and deductions available by either government.Just imagineâ?¦you live a nearly tax free life (completely legit!).E â?? Equity: Build $ value into the assets that you own, and take advantage of time value of money.A â?? Appreciation: Law of Supply & Demand. With the world population doubling in the next half-century, and no more real estate being made (except in Dubai), price (demand) will outstrip supply.Regardless of how things may look in your market, today, over the long term, real estate always goes up in value.L â?? Leverage: This is the secret that the Wealthy use. If youâ??re a real estate investing syndicator, applying leverage in all scenarios (OPM, OPK, OPR, OPT) is what itâ??s all about.You can learn real estate investing at many different levels â?? from wholesaling, to commercial investingâ?¦even create your own real estate investing institute in your own marketplace that allows you to disrupt your competition, deliver an innovative solution, so you can generate a 6 figure bank account and realize 7 figure gains in as little as 7 months.
Real Estate Investing: America is Dead Wrong When it Comes to Investing in Real Estate!
Posted on 24. Jan, 2010 by admin in general
Want to make millions investing in American real estate?
You can!
All the nay-sayers, chicken littles & all the talking head media in America is DEAD WRONG when they say you can’t make money with real estate investing in the United States.
You will make a fortune betting on the USA like Warren Buffet does.
And here’s the PROOF!
China & Russia is buying up more of America than ever in history.
Don’t be surprised if your next mortgage company is from China! Did I also mention Canadians are buying up everything that they can in the good old USA. I
I know this first hand as I grew up in Canada & have many contacts there. For the first time in 40 years the Canadian Dollar (the loonie) is about par with the United States dollar.
Do you think they see and know something that we don’t?
They have more faith in our country than we do.
Why You Should Invest in United States Real Estate
Approximately $33 billion dollars a month in ARMs mortgages adjusted up. Right now in the next 11 months, there are $46.47 billion dollars a month of ARMs adjusting-up!
Well, if you grab your calculator, you’ll realize that’s an INCREASE IN BUSINESS of 42%! That’s right! 42%! MORE business that HAS got to get done!
Why American’s Are Wrong When They Say Don’t Invest in American Real Estate
Here’s why most Americans never get ahead in life…
1. Most of us like to go with the herd, just like cattle. We all do the same thing. We are lazy. And, we don’t like to think and act on our own.
2. I’m ashamed to say that most Americans do not believe in themselves & their country. The media easily influences them.
3. Ordinary people are generally guided primarily by FEAR. Greed takes a backseat. I remember, after September 11th, a whole lot of people started betting against America. They also did it in 1979.They did it in 1960. They did it in 1941, 1929, 1865, 1789, and 1776. And they were wrong to bet against the American stock market, real estate and mortgage business.
There are MILLIONS of households that ARE doing something. These households are mostly Chinese that are buying everything that they can possibly get their hands on.
When I worked with Tony Robbins, he would tell me, “Larry, success leaves clues”.
So get a clue!
There are more Chinese millionaires made per minute than anyone else. So, follow their lead. Do what they do.
Why Investing in American Real Estate is Your Least Path of Resistance
Money is like water. Here’s how…
1. It flows to the lowest places. 2. It builds green growth. 3. It takes the path of least resistance
Right now, successful real estate investors are saying, “we are waiting till things change.”
But they’re lying! Just as surely as Kirstie Alley at a Weight Watchers meeting!
Watch what they DO, not what they SAY! They have cheesecakes in the freezer! They are secretly buying anything and everything.
Get a clue and dive in now. Just ask Gates, Buffet & Trump. See what cheesecake they’re buying (Real Estate).
Why NOW is the Time to Buy American Real Estate
1. This is the biggest sale of Real Estate in 23 years. 2. Huge influx of cash from foreign investors snapping up inventory thus creating demand 3. Bottom has been reached. 4. Great savings on mortgages from 7 interest rate cuts in just 7 months 5. HUGE profit potential on Massive Foreclosure Wave
Here Are 3 Tips to Get You Started in Investing in American Real Estate Now
1. Join your local Real Estate Investor Club and attend as many events as possible. 2. Go on Real Estate Investor Tours (kick the tires) 3. Invest in your Real Estate Education through home study courses and attending as many seminars as you can.
It is a buyers market – a real estate investor’s dream. So, what are you waiting for? Follow my 3 tips above and start investing in American real estate today.
Creative Real Estate Investment Financing
Posted on 24. Jan, 2010 by admin in general
Creative real estate investment shapes the real estate investment behavior of individuals. Real estate, also known as immovable property, comprises of land or anything permanently connected to the land, like buildings. Real Estate is often viewed and used in contrast to personal property. With the development of private property ownership real estate investment has come up as an emerging area of business. Creative real estate investment is commonly known as creative realty investment. It comprises of the purchase, sale of residential land and building and non residential buildings. The main conduits involved in this are landlords, tenants, buyers, developers, builders, real estate agents et al. The development in hospitality, entertainment and IT sectors are highly influencing for the creative real estate investment business. Creative real estate investment as viewed normally is not only the business of the rich strata of the society as even if the investment is low it can reap huge benefits. Certain points are to be kept in mind before go for creative real estate investing in this business like where to invest and how to invest. The people involved in this business should have a complete and comprehensive knowledge abut the areas, which are risks prone. Success in property is the main cause behind its upsurge in countries like USA, Canada, Australia, Europe and New Zealand. The best way to get stated with creative real estate investment is to advertise. Creative real estate investment is an art for successful real estate investment. One should start from the initial stage of gathering information and resources. Apart from that getting information from the net, the local newspaper is of utmost help. Information from the bulletin board also helps a lot. The legal section of the newspaper also helps in getting the right kind of information. A list of the houses, which are fire damaged or abandoned, should be made with notices attached to it so that it may help in getting the buyer. The neighbors should be talked to as they have full information about the buyer and other sell plans. Attending free seminars also gives an insight into the nuances of the creative real estate investment business. Real estate agents and real estate brokers are also there who help getting information on investment.This way it can be said that creative real estate investment is one of the business ventures, which involves minimum risks, and maximum gains. It has now spread over different fields and segments. There has been a remarkable growth in the real estate prices in recent years. This new area of business is attracting many of the newcomers, who want to make good money.
Real Estate is Still About Location, Location, Location
Posted on 21. Jan, 2010 by admin in general
Location impacts the rents you can get, the tenants you attract, and the problems you can encounter. It also impacts the appreciation of your property and the opportunities you may have in the future.
Ozzie Jurock wrote a book called Forget about Location, Location, Location and said that it’s actually about value, value, value. Other experts have said to buy the worst house on a block regardless of where that block is located. We think it’s best to combine the search for value with the search for a location that will help you achieve your goals (you have taken the time to write down your goals haven’t you?).
I would rather own a well built home that requires little to no work in a slightly rougher area, then the worst built home in a good neighbourhood. That doesn’t mean location isn’t important, it just means location isn’t everything in a purchase.
If your goal is to “flip” a property (buy it cheap, renovate it, and resell) then you really do want to find that beat up house in a great neighbourhood. If your goal is to have a lower maintenance property that will attract good tenants, appreciate over the years, and you aren’t as worried about the amount you have to invest today, then you are looking for a great location and a good house. If you want good cashflow without putting much money down, you are likely going to have to look in the lower demand areas to find the motivated sellers.
You see how goals are important in your choice of location? Your personality and risk tolerance also come into play. If you need to see your investment on a regular basis then you will want to look in your neighbourhood. If you prefer not to be involved at all, then you may want something further away from you.
If you aren’t sure where to look to find the properties that meet your goals, it’s time to begin your research. Here’s how we start our research:
1. Go to open houses (usually 2 – 4pm on Saturday and/or Sunday) and ask the agents lots of questions about sales in the area and prices in the area
2. Look at local listings in your newspaper and at MLS.ca (or realtor.com if you live in the U.S.)
3. Drive by your desired areas regularily, or better, go for walks along the streets you want to buy on
4. Speak to neighbours (walk by on a sunny day and people will be in their yards) about the houses in the area, what they like and don’t like about their area.
Once you determine what properties are selling for and if they are within your price range and goal objectives, your next task is to figure out rents. To do this I usually:
1. Browse online classifieds offered by newspapers across the country
2. Review Viewit.ca on a regular basis as they take photos of each listing as part of their service
3. Read CMHC (Canada Mortgage and Housing Corp.) published information
4. Speak to the real estate agents at open houses and ask them what they think their listing would get in rent, and ask about other properties in the area.
Quickly you will identify areas where you can buy something and rent it out at prices that meet your goals. And, if you have done your research well, you will be able to act quickly and confidently on opportunities when they do arise. You also may be able to grab them before they get on the market.
At the end of the day it’s still about location, but for us, it’s about finding the best location for your goals.
Can Commercial Real Estate Be Risky?
Posted on 19. Jan, 2010 by admin in general
Real estate investors often hear stories of how profitable commercial real estate can be.
These success stories paint the picture that investing in commercial real estate is a goldmine just waiting to be discovered. In some ways, investing in commercial real estate can be considered as just that.
Many people are not aware of the profits that can be made through investing in commercial real estate. Similarly, they are also unaware of the amount of work that is involved with commercial real estate investing.
Certainly those people who have been successful in investing in commercial real estate are not trying to lead sheep to slaughter by making it seem that the process is all glitter. Rather, these people have worked in the area so long they know how to work around the possible pitfalls involved with investing in commercial real estate.
If you are thinking about getting involved with commercial real estate investing you might wonder if everything is as easy as it may first seem. There is no simple answer to this question. Rather, it is good to know the bad side in addition to the good side so that you can make an informed decision about investing in commercial real estate.
As you may have already discovered, commercial real estate is very much different from residential real estate. With commercial real estate, there are many subcategories in which you can choose to become involved.
When some people first begin investing in commercial real estate they make one of two mistakes. Either they begin working in an area of the market that they are unfamiliar with or they try to work with too many parts of the market. Since there is more than one category of commercial real estate, it is best to pick one of those categories to specialize in.
This way you spend your time getting better at just one aspect of commercial real estate rather than becoming the “jack of all” trades in the market.
Another thing that could be considered a disadvantage to investing in commercial real estate is that you must be very detailed oriented. One of the biggest mistakes that investors make in this market is contract oversight.
There are many different negotiable terms in a commercial real estate contract. If you fail to close the loop on any of these terms you could find yourself in a situation where the person on the other end of the deal has the upper hand. You want to avoid this situation at all costs.
Having an attorney read over your contracts is a good practice to make sure the contract is in your best interest.
When investing in commercial real estate, exit strategies are a must. Because of the nature of commercial real estate, there is a greater chance that something could go wrong.
For example, a buyer could back out of the deal at the last minute. It happens frequently in the commercial real estate business. Always have a contingency plan in the event that things do not go according to plan. The last thing you want is a commercial property that you can’t sell.
Indeed, there are some advantages to investing in commercial real estate. However, disadvantages exist as well. It is best to know both sides of the story so that you don’t find out when it’s too late.
Top Reasons to Buy Real Estate Overseas
Posted on 16. Jan, 2010 by admin in general
Owing to the overseas real estate revolution, people seem to be keen towards investing overseas rather than in their own countries. This trend has become a popular substitute for the traditional pension scheme for many and casual buyers are eventually transforming into savvy investors, scouring the market for the next big thing. Most overseas property investors believe that the profits in any property investment abroad are made at the purchase. Many investors buy properties at low prices and enjoy the capital gains. A number of buyers investing for the first time in real estate are joining the overseas investment bandwagon. It has led to a rise in demand for properties in several emerging markets like Montenegro and Cape Verde.
Some of the main reasons to buy real estate overseas are as follows:
. Opportunity to be a part of new cultures and history: Buying real estate overseas provides you with an opportunity to understand and respect new culture and history. Besides, you can also enjoy the scenic beauty and geographic delights of your favorite country. Buying a real estate property in your favorite country will enable you to explore the country, people, language and various special features of the place. It will help you satisfy your curiosity about the nation.
. Safety: People with small kids would like to opt for a place which is safer and the environment is appropriate for many outdoor activities, as it will help the children grow without fear and develop, learn and experience a new world altogether.
. Real estate-a great investment: Investment in overseas real estate is considered one of the best options. By combining the ownership of a house overseas, along with the long-term financial plan, you can make an investment in asset that can even set you up for retirement. Besides, if your retirement age is near, you can buy a vacation real estate abroad in a country blessed with beautiful climate and an affordable cost of living.
. Business opportunities: A range of business opportunities in the foreign country can also be one of the main reasons for buying real estate properties. You could easily stay and explore a number of business options that may not be available to you in your own country. Good business options will mean better growth in terms of profit, as well as skills.
. Less Stringent laws: Many countries are popular for less stringent laws to be followed by the non-residents of the country. For instance, in Canada you need not be a citizen of the country to buy a property there. Moreover, they have less stringent laws for people who wish to migrate to Canada.
. Cost of living: Many people wish to migrate to Europe, but owing to their financial constraints they are not able to do so. It is mainly because Europe has a very high cost of living. Generally, people prefer buying real estate properties where they can have a high standard of living, but a low cost of living.
. Property markets: A number of countries in the world are popular for having very attractive markets, where the real estate is completely undervalued.
Flu and Recessions: Fear and Reality Catalysts That Affect Commercial Real Estate
Posted on 08. Jan, 2010 by admin in general
As I wrote in “Technology’s Effect on Commercial Real Estate in a Recession”, the recession becomes a possible catalyst for more telecommuting and less use of office space. The point of that article was not just that technology is the enabler of a telecommuting trend, but also that it sometimes takes a catalyst to bring on the complete consequences of an impending trend. In the last couple of days, many around the world woke up to headlines about the possibility of a Swine Flu Pandemic, and we found ourselves with yet another possible catalyst. With the fear, be it an overreaction or not, of a full pandemic looming, the thought of going into an office with several hundred or even thousands of people does not seem very appealing, let alone taking public transportation to get there. One would guess that anyone with telecommuting capabilities may have chosen to stay home within the last few days.
My position still stands on technology’s effect on certain commercial property types placed in that original article; and to extrapolate further, it is important to understand what would happen if this does develop into a full pandemic. Not only would office space be affected as well as the retail spaces that are associated with them, but it may reach further into the consumer supply chain. For example, in some areas of North America, online grocery shopping has taken off but not as much as many have expected. However, to use Malcolm Gladwell’s terminology from his now famous book, “The Tipping Point”, it has not tipped into a fully fledged consumer trend or epidemic like say a Netflix or iTunes. However, if the thought of going to the grocery store and catching a flu sounds too risky all of a sudden, it may get new people to try out online grocery shopping for the first time. Once shoppers start ordering their groceries online, would it then create the possibility of them continuing to do their shopping online even after the fear has passed? Also, by shopping online and telling their friends and family they are doing so because of the fear of catching the flu, would it also convince others into grocery shopping online as well?
Grocery stores are just one example, but overall, any place that is going to have a lot of people together in a closed off area is probably going to be avoided during a flu pandemic (or the fear of one). That being said, the mall would also be a place you would avoid, and that could lead to new online shoppers. The point of all of this is that catalysts help make natural trends happen faster. I, like many, believe that the natural order of things will lead to more and more movement into cyberspace by both businesses and consumers. What makes a flu pandemic interesting is that it could start to hit the large retail properties. We are not talking about 2,000 sq ft Blockbuster stores anymore; in this situation it would start to hit your 10,000+ sq ft superstores. That becomes extremely concerning, not only for the superstores themselves, but for all of the additional retailers that surround superstores and feed off of their business.
Before you go and start selling all of your commercial real estate, realize that we are talking about extreme scenarios and not something that would happen overnight. Adjusting investments solely based on the probability of a full blown flu pandemic is about as strategic as hitting on 19 in blackjack. It does however force us to contemplate the fragility of current business models that depend on physical space. These stubborn models based on bricks and mortar attributes are being threatened by new models utilizing technologies that are cheaper, faster, and in this hypothetical case, safer for the consumer. One example of new technology models taking over an old industry is the online company BasicFunerals.com. It looks to be the first fully online funeral and cremation service that doesn’t own a physical property. Without the large overhead, they offer all the services of a funeral home at close to half the price. This is one example of an old model that nobody thought would change. This is not to say that all commercial real estate will suffer from a move to cyberspace; other types of commercial real estate could either thrive or see no effect. For instance, a retail superstore like Costco, depending on location, could be more of a centrally located warehousing type facility to deliver products to consumer’s homes. In my opinion, property types like multi-family and small mixed-use should also not be affected by this as people need a place to live, and corner stores compared to malls are more practical for an increasingly home bound world. Also, as discussed in the previous article, “Technology’s Effect on Commercial Real Estate in a Recession”, I spoke about office space in general being affected negatively by more telecommuting. However, I do believe that medical office space could do very well, especially with an aging population.
What is significant to consider, is that it may just take the fear of something like a flu pandemic to be the catalyst without the actual event taking place. When the markets have fear, selling off equities and a flight to alternative investments like gold and other precious metals is a common theme, so fear based investing or divesting is not anything new. For that matter, I believe, like many others, that we are likely headed for a double dip recession where inflation created out of government “over-stimulus” would crush a fledgling recovery and start a much longer, painful recession. Either way, the businesses that have moved to telecommuting out of the need to cut costs while trying to maintain productivity, will not be leasing new office space anytime soon. For that matter, retail outfits that are in fear of a drawn out recession won’t be looking for new retail space either. The fear of a flu or the reality of a recession results in changing business models whether we like it or not. For more close minded individuals that feel a physical space for business is essential, ask yourself and your friends if they have ever gone to a record store after downloading songs onto their iPods, or the last time they went to a video store after using ON Demand or Netflix, or if they still have a newspaper subscription. Change is only feared when one is not willing to adapt. Are you?
Copyright: Dominic Mazzone, Regent Global Funds, 2009
This article was written by Dominic Mazzone, Managing Partner and Fund Manager of Regent Global Funds.
This article and other like it can be viewed at www.investingsymposium.com which is part of the Regent Global Funds Network.
Regent Global Funds, is an alternative investment fund that offers its participating investors and asset backed investment through asset based lending.
The Fund Managers of Regent Global Funds have an expertise in commercial real estate lending and have created a successful alternative investment vehicle that is diversified through this structure. They separate themselves from other fund mangers by personally investing their own money side-by-side with their investors in the fund, creating an absolute structure of accountability. Dominic Mazzone has written about the need for this type of accountability in an article titled “Fund Managers Need to be Accessible and Personally Invested.”
Real Estate Investing Seminars: Providing a Clear Insight into the Industry
Posted on 03. Jan, 2010 by admin in general
Real estate investing seminars give a clear insight into the business proceedings of the sector. These seminars are targeted to those who wish to pursue a career in real estate investments. Though it is easy to make money in the field, it is also highly risky. This is because cash flows cannot be determined at the primary stage. If that sounds like Greek to you, you need to attend a seminar or two.
As a substantial investment is required at the primary stage of realty, beginners find it difficult to get started in their careers.
Aim of real estate investing seminars
Successful investors conduct these discussions and share their experiences with the participants. The seminars are organized in schools and colleges in order to help beginners pursue their dreams. Speakers try to strengthen the willpower of the participants. The strategies suggested in these discussions often help the candidates to get rid of their fear and get started. Free discussions are held in order to reach out to a greater number of aspirants.
Topics that are generally discussed in these seminars
Terms related to investments in the real estate sector
Issues related to property management and development
Marketing strategies that are generally used in this field
How to locate proper agents for selling contracts
How to identify target markets in order to make good investments
Analyzing and deciding the price of the property to be invested in
How to get credit at a low cost or free of charge
How to apply for special loan programs
Understanding the financing aspects
How to acquire new clients and maintain good business relationships with the stakeholders
How to acquire strategies of creating fresh leads from the market
The seminars also help the candidates to understand the risks involved in investing in the business. Beginners should have some idea of the above mentioned topics before they get start their careers. This will ensure that they do not fall prey to the unscrupulous dealers who often dupe new agents. Apart from attending the real estate investing discussions, beginners may also do a bit research on the net.
The advantage of attending these discussions is that beginners can get in touch with experienced and established professionals of the sector. Not only can they learn about the trade, they may also use these meetings to network with others in the field.
Things to remember when investing in real estate
Posted on 03. Jan, 2010 by admin in general
In the last couple of years real estate investment has taken a huge beating. With the markets crashing in most parts of the US and in some parts of the UK, the general mood is grim, as far as real estate is concerned. In almost all parts of the world, home sales have slowed to a snail’s pace and value of properties has plunged like never before. The cause is not helped by climbing mortgage rates either.
A good majority of investors are therefore staying away from investing in real estate. Understandable, but a tad overcautious?
It would seem so.
The financial downturn has its benefits. For instance, if you are a buyer in this market, chances are you will make a handsome profit because it is a buyer’s market out there. For one thing, rates have crashed. So, anyone making a buy today can be assured that they are buying when rates have bottomed out. Secondly, most sellers have come down from their high horses and are willing to sell if they get a genuine buyer with a reasonably good offer. Some are even ready to sell if they break even. So, if you have the money, there’s no reason to hold yourself back.
But there are a number of things you need to remember before investing in real estate.
Real estate is not the stock market. You cannot expect to play it for short term profits. In the past, people have invested in property and flipped it for handsome profits. But that bubble has popped and it is anybody’s guess when things will be as they were before. So, play in real estate only if you are in it for the long run.
The second rule in real estate investing is to always, always be prepared for the deal. Many people buy as a direct result of knee jerk reactions to all the bad news they hear. That’s the natural thing to do when sources around you are pushing nothing but volatile pieces of news. But a wise investor needs to be objective and dispassionate in their decision.
The best way to achieve objectivity is to collect as much information as possible. Every investor needs a systematic and disciplined approach to the investment process and must act in keeping with a grand plan of events.
Another important thing to remember in real estate investing is to keep your risks proportionate to your ability to absorb these risks. Make an investment only when you are financially capable of it. For instance, a person who is accumulating assets can take higher risks than, say, a retiree.
For someone looking for an opportunity to invest in real estate, the sky is really the limit. As the economy picks up and growth begins to make itself felt once again, the wise can make huge profits. However, the bottom line is that investing in real estate is a huge risk. You can win only if you utilize and take advantage of superior research, planning and high quality financial planning
Real estate investment â?? doâ??s and donâ??ts
Posted on 02. Jan, 2010 by admin in general
Real estate investment does not exactly happen when you are desperately in need of a home. Many people who buy homes do it because they expect their investment to grow in the years to come. As you can see, thereâ??s a clear investment angle to the whole thing. So, if your interest in real estate investment is profits and returns rather than a place to stay, you need to be clear in your mind of certain things.
First, be perfectly clear about your reason for investment. Are you investing in a home because you have no other place to stay or are you looking for a way to diversify your investment portfolio? If you are a home buyer who desperately needs a place of your own, then, your focus has to be on getting a house that is livable and suitable for YOUR particular needs. On the other hand, if you want to make profits from your investment in real estate, you must take particular care in selecting prime property. Premium location, high quality construction, good neighbors and useful facilities drive up the price value of your real estate investment.
Every investor wants to buy low and sell high. However, this dream seldom translates into reality. In a good majority of cases, people often miscalculate the timing when they buy or sell. But, if you are a buyer in this market, you have a lot going for you because rates have bottomed out in most places. So, you ARE realizing one end of the transaction. To make your real estate investment even more price effective, choose a structure that needs minimal repair and maintenance. Any expense on the house adds to your cost. If you keep your investment low and are successful in selling high, you can make a good profit.
Since the housing market went up like a pot of firecrackers, investors have been somewhat wary of real estate investment. This is only natural. Many fingers have been badly burnt. To keep yourself from making this mistake, make inquiries into the state of the housing market in your area. If the sale value has been beaten to a pulp by the economy, it makes sense to buy as soon as you can. But, if you buy in an area with a poor sale value (due to reasons like crime, poor sanitation, slums etc), then you cannot expect high returns.
Real estate is a huge investment and the volume of money going out is substantial. Buying a home and paying a high monthly mortgage does not make financial sense because you end up paying much more than the market value of the house. Make your investment only when you have the finance to back you up. Remember that you may have to hang on to your investment until the market bounces back. And no one can say when that will happen.
From the outside, real estate investment may seem to be the easiest way of making money. You buy a rundown house, renovate it and sell it at a profit of 20-25%. What could be easier? Real estate investment can give you huge returns provided you play the game with a complete awareness of the risks involved and make informed decisions regarding your purchase.