Curt Cloyd Reveals The Different Ways Of Real Estate Investing
By: Curt Cloyd – Director
Personal Wealth Academy, LLC
It sounds like a great idea, doesn't it? Investing in real estate sounds like a great money making
opportunity. And it is, so long as you know what you're doing. There are many tips out there to help you
be successful in real estate investing. However, Curt Cloyd warns that it isn't just about know what you're
doing in terms of the financial investment, it is also about understanding the different types of
investment that are out there. Curt Cloyd is there to help people make good choices when it comes to
their financial investments. Let's take a look at the different types of real estate investments that are out
there, to help you make a better choice in terms of what is right for you.
Basic Rental Properties
When thinking about real estate investing, most people immediately think about basic rental properties.
Curt Cloyd agrees that this is often the easiest way to get into the real estate market and the practice has
existed since the first time houses were built. Basically, it means you buy a property and rent it out to
someone else. Curt Cloyd warns that understanding the process, however, is very important. You, as the
landlord, are responsible for mortgage payments, paying costs, and maintaining the property. In an ideal
world, the rent you charge is enough to cover all of those costs and still make you a profit as well.
However, the key is in the word "investment". What all landlords hope for is that the property becomes
more valuable than what they have paid for it, allowing them to sell it on again. This has been a pretty
safe investment since the 1940s, but then the global recession started in 2007, with property prices
dipping in 2008. They are now back on the rebound, but they are not up sufficiently to class investments
as ready to be sold on.
Real Estate Investment Groups
The next thing you could consider is to join a real estate investment group. As explained by Curt Cloyd, a
real estate investment group can be as little as two people, say you and your best friend, or as big as a
full national company. One very interesting way to join a real estate investment group is if you buy a
single apartment in a full apartment block, for instance, with the company remaining the manager of the
building itself. This is interesting, because it takes some of the stress away from your responsibilities as a
landlord. However, Curt Cloyd does warn of the potential pitfalls of this system. Firstly, you may need to
sign up for things that go against your own principles. Secondly, you will have to pay the investment
group, generally around 10% of your monthly rent. Also, the group will usually be responsible for finding
new tenants, which can be a good thing because it is one less thing for you to do, but it can also be a bad
thing because you won't personally vet your tenants.
Real Estate Trading
If you are a real maverick and like to live on the edge, real estate trading is for you. Curt Cloyd warns of
©2012 Personal Wealth Academy LLC
how dangerous this can be, however. Real estate traders are very, very different from the standard buy
to rent traders. In trading, you buy a property with the sole intention of selling it as quickly as possible.
Generally, a property is only held for around four months, after which the property gets sold. The
problem is, as Curt Cloyd explains, that making a profit is very difficult at the moment. Another term
used to describe this type of investing is flipping properties. The only way to really make it in this world is
if you stumble upon a property that happens to be completely undervalued or if you find yourself with a
cheap property in a market that is suddenly exploding in terms of property demand. It is very risky
business, but the potential to make money quickly is much larger than with any other type of investing.
Remember that, technically, real estate investing started in caveman times. In these days, we allocated
ourselves a cave and if a trespasser would come into it, we would chase them out with bone and stone
weapons. These were the first landlords, basically. Curt Cloyd explains that Wall Street has turned real
estate into a way to trade for the public. A REIT is a Real Estate Investment Trust. They come into
existence when companies, or trusts, use money from investors to buy and sell, or buy and let,
properties. In order to be classed as a REIT, 90% of the taxable profits must be paid out in dividends. This
way, the REIT does not have to pay any kind of corporate income tax, which is very lucrative. However,
this type of investment is a speculation at best and carries tremendous risks, because you are basically
playing with someone else's money.
The last option that is available to you if you want to invest in real estate is leverage. Basically, Curt Cloyd
explains that the main tool you have when you invest in real estate (so long as you don't invest through
an REIT) is leverage. If you compare it to the stock market, you can only buy a stock if you have the full
amount of money there as soon as you place your order. With real estate, however, you don't. In this day
and age, it is common for mortgage brokers to require a 25% deposit, but you can still get 95% LTV
mortgages, particularly in the buy-to-let market. In other words, you control a property, you control the
equity, but you only pay a fraction of the value up front. Naturally, you do have to pay your mortgage, as
well as the interest, but you are basically the owner of the property even though you haven't quite paid
for it. There is no other market in the world that allows you to do that.
Curt Cloyd has used his vast amount of knowledge to form Personal Wealth Academy. Their sole
purpose is to to guide, advise and nurture real estate investors so they can gain financial freedom and
independence faster and easier than they ever could on their own.
They accomplish this purpose by providing training on cutting edge real estate investment strategies and
mentorship through expert real estate coaching services.
©2012 Personal Wealth Academy LLC