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Showing posts from April, 2020

Investing in Real Estate Part 2 - Expenses Associated with owning Rental Properties

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In the first segment we went over the importance of getting clear on your investment goals and discussed three possible scenarios for real estate investment. The first is the fix and flip scenario – this type of investment can yield a quick return, but it is risky and hard to find in today’s market conditions. The second is an investment for cash flow.   While the property may increase in value over time, the main objective here is to generate a passive cash flow.   To achieve this, an investor will typically put a lot down and look for a property with low monthly expenses. The third is a buy and hold scenario.   Here the investor is looking for long term gain and the appreciation over time.   Typically, the plans on holding the property at least 7 – 10 years and may put as little as 20- 25% down.   The rent should cover expenses initially, but over time the investor will see some passive income (in addition to the appreciation in value) as rents increase. So,

Investing in Real Estate - Getting Clear on Your Goals

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INVESTING IN REAL ESTATE - GETTING CLEAR ON YOUR GOALS Did you know that investment in real estate has out preformed most other types of investments in the last 100 years?   If you’re like me you get it, you realize that real estate is a solid investment and a way to growth wealth, but you don’t quite know where to start. Most assume that the place to start is with the money needed to invest, but I would suggest that the best place to start is with clarity.   Know what you want to gain from your investment. Thanks to HGTV and other DIY networks, a lot of folks think of a “fix and flip” when they think of a real estate investment.   In this scenario, you find a distressed property, buy it for considerably below market value, renovate it and sell it for a profit.   This type of investment can yield a quick profit, but it is risky.   People underestimate what kind of problems they’ll find in the home and how much it will cost to repair them.   It has also been challeng