Is Real Estate investing for you?
What exactly is investing in real estate? It is the buying, selling, managing, or renting of property to earn more money. There are many different ways people invest in real estate; our team specializes in helping you with residential and commercial real estate investing.
Real estate has been considered a sound investment for a long time. One of the most common ways people invest in real estate is by owning rental properties. This means that you will become a landlord. A landlord is responsible for any mortgage payments, property taxes, repairs and maintaining the property, finding tenants, and dealing with any problems that arise. Landlords make a profit by collecting rent and typically follow the 1% rule when deciding which rental properties to invest in. How much rent that is charged is determined by the location and features of the rental.
Some real estate investors who do not want to handle the management of a property contract a property management company for a fixed fee or percentage fee. This takes some weight off a landlord’s shoulders, transforming real estate into more of a passive investment. However, this tradeoff also means that an investor loses a portion of their monthly income.
Flipping properties involves an investor that typically purchases real estate at a discounted price, improves the property, and then sells for a higher price within 6 months or less. Old homes, foreclosures, and short sales are popular properties acquired for flipping houses because of their low cost and potential to make profit.
If you watch HGTV, then you have probably watched a house get transformed in under 30 minutes and sold for a substantial profit. In these shows, house-flippers buy a home that they believe to be under priced, add value through renovations, such as replacing counter tops or flooring, or tearing down walls to change floor plans. While house-flipping makes for great TV shows, it also requires deep financial and real estate knowledge. This is to ensure you can make over a property within a preferred time frame and budget to make certain you earn a profit when the home is sold.
Commercial real estate properties typically include retail spaces, industrial, offices, warehouses, apartments, or land.
Interested in investing?
We are here to empower you and take your real estate goals to the next level. Talk with one of our experienced Realtors today!