Hit me: Investments 101

Just starting out as an investor?  Have no fear, it is simple.

Why choose real estate as your investment? Here are a couple reasons:

  • -It is inflation protected, and grows in value as the inflation rate increases.
  • -Once a loan is paid off, you enjoy ongoing cash flow for years to come.
  • -Costs to operate and own the real estate are all deductible.
  • -‘Passive Income’ from investments are subject to less tax.

9 Meadow_01

So you are ready to go find a property? Here a a few things to know first:

  • -Loans will require a 25-30% down payment, plus closing costs, and funds needed to fix the home up when needed. If you have cash, a discount can be expected.

 

  • -It is a wise idea to have your property in an LLC, so plan ahead. They are easy to create, but it will take a little time.

 

  • -Consider your strategy first: will you manage it yourself? Hire a property manager? If you will manage yourself, being close by makes it much easier.

 

  • -Research what rental rates are, so you know how much you will make on your investment.

 

  • -Learn to figure a CAP rate. This is a simple calculation where the money made after expenses is divided by the sale price. The ratio is your CAP rate. Rates vary in this area from 6-12%.

Make THIS YEAR the time you take action to ensure your future financial freedom.

Call or text with questions and get started making money!

 

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