Investing

There are endless ways to invest, so knowing your intention is critical to forming an effective strategy.  Do you want to generate extra monthly income?  Are you trying to secure your retirement plan?  Are you hoping to build generational wealth?  We will work with you to find properties that match your purpose.

Talk to a financial advisor and a lender to discuss your options.  Learn how much you can comfortably invest, the different options for financing, and what those scenarios would look like in your situation.  For example, if you are looking to sell one investment property and buy another, a 1031 exchange may allow you to defer capital gains tax.  

Learn how to analyze cash flow and familiarize yourself with the different expenses associated with owning property, including property taxes, insurance, utilities, maintenance & repairs, vacancy rate, advertising, legal and professional fees, including hiring a property manager and any business licenses you may need in order to rent out a given property.  Make sure to factor these expenses into the income you expect to generate in order to determine if an investment will achieve your goals.

Use a rental property calculator to analyze various property types (single-family homes, duplexes, 4plexes, etc.) in different neighborhoods to identify properties with positive cash flow.  Although investing close to home offers convenience, you may find that investing at a distance improves your net returns.  Consider consulting with an experienced investor about what markets they are investing in.

Consider working with an experienced Realtor® to pinpoint properties that most closely match your goals.  Not only are they familiar with the local market, they often hear of properties before they hit the market, giving you an upper hand in finding the perfect investment property.

Now that you have a clearer picture of the type of property you are searching for, consider whether you would like to hire a professional property management company to handle day-to-day operations such as advertising, screening and selecting tenants, collecting rent, handling maintenance and repairs, responding to tenant complaints, and handling evictions.

Congratulations!  You have found the perfect property.  Your Realtor® will help you navigate the transaction process, from writing offers and counter offers, negotiating inspections, and working through all the contingencies of the contract to arrive at a successful closing.

Now that you are familiar with how to invest in real estate, you are likely aware of its many benefits.  We are here to help you expand your portfolio - let's talk about your next adventure!