Are You New to Real Estate Investing? Everyone in real estate investing was a beginner at some point and most experience trepidation.
Here are some Fears and Facts:
Fear: Committing to the cost of a second property.
Fact: Self Directed IRA's allow an investor to use IRA funds to buy and sell property. Investment properties can also be leveraged so that the tenant actually pays off the mortgage while equity is built. There are many tax benefits to owning an income property, such as depreciation. Today's prices are down and interest rates are at historic lows.
Fear: I am not wealthy enough to purchase real estate as an investment.
Fact: Half of the real estate investors in 2015 made less than $75,000 per year. They used different strategies to invest in real estate. Be financially sound before you invest in real estate. That means that you can pay for your current lifestyle by the income that you produce. You can purchase with the right amount of leverage and your tenant pays the mortgage for you asyou build equity. If you use a self-directed IRA, you can even use your retirement funds to invest. Interest rates are at an all time low and could be saving money in the long run by investing now.
Fear: Real estate will not offer the same appreciation as stocks, bonds, or mutual funds
Fact: Real estate offers cash flow, leverage, and tax benefits such as depreciation and the 1031 tax exchange. Over time, properly leveraged equity can far outpace stock appreciation.
Stay in touch with the estimated cash flow of available homes and condos. Visit my Search Homes page where the estimated cash flow is listed with each home/condo. If you have any questions about real estate investing, feel free to call me at (702) 324-5390 or drop me an email I'll be Happy to Help!