5 Reasons Why You Should Consider Investment in Real Estate

With more entrepreneurs looking into the concept real estate investments, not many understand the true value and potential that it may have. In this guide, we will discuss the benefits of rental real estate and how it helps entrepreneurs build their success.

Here are 5 reasons why you should consider investing in real estate.

Gain advantage over Investment

Real estate is one of the few sources of investments where you can use the bank’s loan to make a down payment, use your capital and increase the return.

Grow income without tax

Buying rental properties based on this value is a dangerous risk to your finances. However, you might want to consider a tax-free strategy with a charitable trust, 1031 exchange, or installment that will help lessen your tax liability in the future.

Take advantage of tax write-offs against other income

Depending on your classification as an active investor, there is a chance that you will be able to have a tax-free cash blow as well as tax deductions against other income. Just be sure to consult with your tax professional before you in invest and keep all expectations realistic.

Increased strategy for tax deduction

The rental property allows investors with plenty of opportunities to convert their personal finances to valid business deductions. As a business, this allows travel expenses to also become deductible and increase tax benefits towards the sale of the property.

Makes a great retirement plant

Today’s generation lack self-discipline that baby boomers have. However, a rental property will work to help you stay committed and maintain the property. Not only will you be thankful in the end, you will also gain a future in wealth and cash flow.

Do you currently own real estate or plan to make your investment? Comment below and let us know!

Infographic by For Sale by Owner
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3 Tips on Turning Real Estate Into Successful Income

With over 30 billionaires who’ve made their fortune from real estate, some believe that it is one of the best ways to build wealth and financial freedom. So what do they know that we don’t? in this guide, we will discuss the top 3 tips on turning real estate into successful income.

Go Ahead and Start Small

You don’t have to jump into full dive to make a successful real estate investor. If you don’t have any experience in real estate, start small and don’t use more money than you can afford. You will need experience on how to read contracts, built your network, and develop an eye for quality and potential. The advantage of real estate is that you can learn the ins and outs while starting small. Just make sure to keep your mistakes as little as possible as well.

Don’t have enough to spend on? Consider wholesale deals. You will need to learn how to put a property under contract and low costs and sell that contract to another buyer before it expires.

Think Outside the Comfort Zone

Having a lot of money doesn’t mean you have to give up on the dream of owning real estate. Focus on the deal at hand rather than your budget. When you want to think big, go big from the start. Opt for at least 16 units and get a manager. If you decide not to get a manager, you will have to dedicate your attention to the property.

Find a Mentor Who Understands the Economy

A strong economy and high consumer confidence will give retail buyers the feeling that the deal is too good to pass rather than fear in renting. The best real estate deals are the ones that look decent and easy the find. Look for a property that already has a manager and tenants in place, join a crowdfunding website, or buy a real estate investment trust. The most profitable opportunities are the new ones that no one else knows about.

Got any tips that you would like to share with us? Comment below and share your thoughts with us!

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4 Steps You Need to Take Before You Purchase Your First Home

Buying a home for the first time is a huge milestone in the journey of becoming an adult. It not only represents the signs of financial decisions and independence but also the goal that they might have been working on for years. If you’ve made the decision to buy a home, there are some vital steps to consider before you get started.

Here are 4 steps you need to take before you purchase your first home.

Consider Where You Are – Financially

The first step to knowing if you are ready to buy your first home starts at where you are, financially. This means knowing how much you earn, how much you save, and how much you spend on bills every month.

Before you start your search, you will also want to check your credit score and determine how it will affect the interest rates on your next mortgage. Having a great credit sore will lead to lower monthly payments. However, a low credit score may require some time to improve it prior to getting a house loan.

Save For a Down Payment

You don’t always have to put around 6 months-worth of your actual income. You can decide just how much you need to put down as the smaller the down payment may be, the large the mortgage loan and interest you will have to pay.

Prepare for Unexpected Costs

The down payment isn’t the only expense you should expect to pay. In fact, buying a house comes with more expenses such as insurance, property taxes, closing costs, maintenance, and moving costs. Be sure to understand the property tax where you plan to live. It is always better to prepare for the worst rather than being surprised when the bills come around.

Apply for A Mortgage

Go through the pre-approval stage and determine just how much you can borrow from your lender. After you determine the basic requirements of your new home, you will need to make a list of deal breaks and must haves to help you narrow down the search.

Got any tips that you would like to share with us? Comment below and tell us what you think!

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