
Investing in Real Estate
There are multiple ways to invest in real estate. You could physically own the property, rent, flip, or invest in REIT's. Whichever you chose, I can help
Buying Property
This is the most known form of investment in real estate, and can be extremely lucrative. Step one is to buy physical property. From here, you may chose to live in the home and sell when the market goes up, rent it out (in which you would become a land lord and possibly need a property manager), or turn the property into a B&B. All of these options have their own unique sets of rules but are effective ways to make passive income.
Flipping
This is often what you see done in those fun HGTV shows. Flippers buy undervalued real estate, fix it up, and sell for a profit. Undervalued may mean the property is in a up-coming area or the house is in bad condition and needs extensive repairs, it's been neglected, ext. In this process of investing, people make their millions by selling for more than they bought, less and repair costs.
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REIT's
REIT'S are a lesser known avenue to invest in Real Estate. Real estate investment trusts (REITs) provide real estate exposure without the need to own, operate, or finance properties. One is created when a corporation (or trust) is formed to use investors’ money to purchase, operate, and sell income-producing properties. Similar to regular dividend-paying stocks, REITs provide regular income, though they offer the opportunity for appreciation, too.
Long Term Rental Properties
If you invest in a rental property, be it a single family home, duplex, triplex ext, you become a landlord—so you need to consider if you'll be comfortable in that role. The investment from this will be in the form of rent and appreciation. How much rent you can charge will depend on the location. A common strategy is to charge enough rent to cover expenses until the mortgage has been paid, at which time the majority of the rent becomes profit. Landlords are responsible for things like paying the mortgage, property taxes, insurance, maintaining the property, finding tenants, and dealing with any problems. Being a landlord is a hands-on investment, however you can hire a property manager to alleviate most of the work. Choosing the right property and tenants will also reduce risk of major issues.
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