Building Wealth in Real Estate

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Most people try to purchase their home at least 30 years before they plan to retire. Why? So that it is paid off before they retire so they can live easier in retirement. Makes sense, except very few people stay in the same home for 30 plus years; the average is about five to ten years. It is no wonder many of our seniors are struggling with a mortgage payment. Is there a better way? You bet! The answer lies in having more than one property. Perhaps you are thinking, “What? And pay for even more mortgages now?” In reality, by putting tenants in the properties, you should have no monthly expenses whatsoever, and often will have an additional income. Have enough properties producing an income and the mortgage on your home is covered as well. Guess where this leaves you in 30 years – yep, you got it, a bunch of free-and-clear properties, STILL producing income. Imagine no longer worrying about whether the social security program will still be around. Even if you have moved a number of times … Continue reading

Helping People And Getting Rich Doing That

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Investing in low-income housing has the unique benefit of helping others while providing a nice income in the process. Available tax credits and beneficial financing options available for investors that build low-income housing can make this type of venture profitable for the investor. Giving Back to the Community One of the side effects of the housing fiasco and subsequent increase in foreclosures is that there is a large influx of people becoming apartment renters that were once homeowners, leading to a shortage of rental properties in some areas of the country. By building low-income housing, an investor can feel good knowing that they are helping the people in their community avoid becoming homeless. In most cases, those that have been foreclosed upon by their lender have had that happen because they are in financial distress due to a loss of income. This situation may qualify them for low-income housing assistance which pays the rent directly to the landlord. For this reason, rental income on such housing is not as risky for the property owner as one would imagine. In some … Continue reading

Getting More Bang for Your Buck

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Buy low and sell high – always the plan for any investment; real estate investing is no different. But, just how do you go about getting the most for your money? Here are a few tips when shopping for your next real estate investment. Motivated Sellers Learn to recognize a distressed seller. This is someone that needs to sell and sell quickly for whatever reason. They cannot wait for the highest offer and will often take not only the first offer but a far lower offer than the property is worth. They may be in the process of relocating for new employment, or moving to be closer to family in crisis, or simply just eager to “get out of Dodge.” While a savvy seller will not discuss their anxiety and concerns, others may give up the information readily if you ask them why they are selling. Fixer Upper Another way to get a bargain is to recognize a property that needs repairs. A faulty roof, old air conditioning equipment, shoddy landscaping are a few of the property conditions that may … Continue reading

Producing an Automated Income Flow with Real Estate

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With property values currently staying flat or slightly reclining, it may not be the time for purchasing property for quick “flipping.” Speculation investing would be risky at a time when prices are dropping. Income Stream However, it is the right time to consider investing in real estate as a source of automated income stream. With property values low, this means property taxes are also low. Additionally, interest rates are currently low as well. These two expenses are the bulk of the fixed expenses when it comes to rental properties. When these are low, you can expect a higher return on investment than you normally would enjoy. It is an easy matter to calculate what a property is worth when you analyze it from an income-stream standpoint. To do so, you begin by determining what the net operating income or NOI for the property will be. This is the amount you will collect less all expenses. Return on Investment You will want to include a budget for repairs and maintenance, as well as taxes, insurance, mortgage payments, association fees and any … Continue reading