Investing in Real Estate can be a fun and fulfilling way to achieving financial freedom. Although lucrative, jumping into the world of investing can be rather daunting. Having personally been in this position, it has become our goal to educate and help others succeed on their investment journey. Included within this page is a brief overview of some important concepts to understand, if you wish to seek further clarification or just want to learn more please reach out to us at any time and we would be glad to talk.
Methods of Making Money Investing in Real Estate
Cash Flow
-When renting out an investment property you are creating a revenue stream. These funds collected can be applied toward covering expenses such as utility bills, mortgage payments, and general maintenance. Typically if careful research has been conducted when purchasing you will be able to find a property that will not only cover its costs but will generate excess funds, these excess funds being called cash flow.
Equity Buildup
-In simple terms equity buildup occurs when a property is leased out to generate an income stream. Using this income stream payments toward your mortgage balance can be made increasing the equity you have in the property. Although not instantly realized, profits from this method will be received upon sale of a property.
Appreciation
-Appreciation occurs when a property increases in value over time. If for example, you purchase a property for $300,000 and over the year values within the area increase by 5%, your property value on paper has there for increased to $315,000. Much like Equity Buildup, this profit will not be realized until you sell or refinance of the property.
Considerations when looking to invest
-What are your objectives?
-Where to buy?
-What type of property to buy?
-Do you want to flip, rent on Air BnB or do long term leasing?
-Financing options?
-Budget?
-Management?
Investing can be hard, when working with our team we will show you how to make it easy.
Real Estate Websites by Web4Realty
https://web4realty.com/