HOW SMALL REAL ESTATE INVESTORS CAN THRIVE IN THE AGE OF WALL STREET REAL ESTATE
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THE BENEFITS OF INVESTING IN REAL ESTATE
If you’re like most people, you probably think of Real Estate as a place to live for work, vacation, or family, or as a location for your retirement. But what about using real estate to make money? There are many benefits to investing in properties. Educating yourself about the benefits and best ways to go about buying a property for investment or leveraging your current home for profit, is the first step to creating additional cash flow and growing wealth. At MY SMART COUSIN, we specialize in helping new property investors conceptualize, fund, and build their real estate empire, penetrate the lucrative market of buying a house for the price of a car, and develop a Real Estate asset plan that will grow with you over time. As seasoned Real Estate Investment Coaches we work hand-in-hand with our clients, with a special focus on Black and Brown folks and women, to implement their strategy and position them for success in today’s ever-changing market. Are you interested in investing in real estate, but at a loss on how to move from idea to action? If so, read on to learn the first steps you should take, no matter if you’re a first-time homebuyer or an experienced investor! THE ABC OF REAL ESTATE INVESTING Real estate investing is the process of acquiring, owning, managing, and typically improving real property (real estate) to generate income from rents, sell it for a profit, or use it as collateral to secure a loan. Real estate is an evergreen asset, meaning that it always has value. It can be a physical space like a house or office, or it can be something full of potential like an undeveloped lot or piece of land. One attribute that all real estate has in common is that the underlying land is a finite resource— as the old saying goes, they’re not making any more land! There are many different ways to make money through real estate investing. The most common way is by buying properties and either renting them out or selling them for a profit. Buying a house for the price of a car is both a low-cost and high-return option for entering the market Another avenue for investment is through real estate development projects. In these projects, your investment takes place through lending money to developers who are building new properties or flipping houses. Real estate development can involve buying properties cheaply and selling them after making improvements, or developing properties to hold for a rental. Real estate can also be used as collateral for personal or business loans. The key to this strategy is to ensure that you have a solid business plan that will generate cashflow near term so that you can service the loan. THE TOP BENEFITS OF INVESTING IN REAL ESTATE · STABILITY AND SECURITY Real estate has always been considered a safe haven and for good reason. Unlike crypto, high-risk stocks, and similar investments that can fluctuate wildly in value and even result in no underlying value, real estate is much more stable and always hold some residual value through the building or land. Even during times of economic recession, the value of land generally tends to remain flat or increase slightly. This stability makes real estate a great long-term investment, particularly for those who are incorporating real estate into a retirement plan. In addition to its stability, real estate offers a high degree of security. Once you own a piece of property outright, the only avenues for losing it are through unpaid and ongoing obligations such as property taxes and municipal services (water, sewer services, and the like). This makes real estate an ideal investment for those who are risk-averse. If you are looking for a safe and secure investment with long-term potential, real estate is a great option. · TAX BENEFITS There are several reasons why investing in real estate can be a smart move, but one of the most compelling is the potential for tax benefits. When you own a property, you can deduct a variety of expenses including mortgage interest, property insurance, repairs, and more. This can significantly reduce the amount of money you owe in taxes each year. Additionally, if you sell your property for a profit, you may be able to avoid paying capital gains tax on the sale by reinvesting the funds into another property— consult with a tax pro before proceeding with this. In short, investing in real estate can be a great way to save money on your taxes. And who doesn’t love being able to keep more of their hard-earned cash? · APPRECIATION POTENTIAL Real estate also offers the potential for appreciation of the asset— perhaps because of a growth in the economy increasing the price of the property, or an increase in rents, making the property more valuable. And while there’s no guarantee that your investment will appreciate, historical data shows that real estate values have increased at a rate of four percent to six percent annually over the long term. When it comes to appreciation potential, there are a few things to keep in mind. First, the location of the property is key. Properties in desirable areas tend to appreciate at a higher rate than those in less desirable areas. Second, the condition of the property is also important. Investing in a fixer-upper may offer the opportunity to add value through renovations, resulting in greater appreciation potential down the road. Finally, the type of property you invest in an impact appreciation potential. For instance, single-family homes tend to appreciate at a higher rate than condominiums or townhomes. So if you’re thinking about investing in real estate, be sure to keep these factors in mind. With a little research and careful planning, you can maximize your chances of seeing significant returns over time. · OPPORTUNITY TO LIVE IN THE PROPERTY YOU ARE INVESTING IN There are many benefits associated with investing in Real Estate, including the opportunity to live in
HOW TO FIND SHORT-SALE HOMES IN 5 STEPS
Real Estate is a great way to build up your net worth, particularly if you buy a house for the price of a car. We at MY SMART COUSIN specialize in helping investors, particularly Black and Brown folks and women, with this process so that you can get started on your investing journey, experience homeownership, and begin building real wealth! If you’re looking to buy a house, one of the first channels you may want to consider is short-sale homes. Short sales, as well as foreclosures, can be a great way to get a good deal on properties that are usually below the radar of most buyers. But finding them can be tricky—especially if you’re not familiar with the process. That’s why we’ve put together this guide on how to find short-sale homes and foreclosures in 5 simple steps. So read on and start shopping! WHAT ARE SHORT-SALE HOMES AND HOW DOES THE PROCESS WORK? A short sale is when a homeowner sells their house for less than what is owed on the mortgage. These homes are sometimes referred to as underwater or upside down. The reason is that the value of the house has dropped to a level that is below the amount of the remaining mortgage amount, meaning you’re essentially paying more to the bank than the house is worth. To be approved to get out of your mortgage and sell your home through a short sale, the homeowner must prove that they are experiencing financial hardship and that selling the home is in the best interest of all parties involved. Once the homeowner is approved to sell the home through a short sale, they will work with a real estate agent to find a buyer for the property. The proceeds from the sale will go towards paying off the outstanding mortgage balance, and any remaining debt will be forgiven. While a short sale can be a stressful and time-consuming process for homeowners, it can be an excellent way for them to avoid the foreclosure process and get out from under an upside-down mortgage. THE BENEFITS OF BUYING A SHORT-SALE HOME A short sale is when a homeowner sells their home for less than the outstanding balance on their mortgage. While this may seem like a lose-lose situation for both the bank and the homeowner, there are a few benefits to buying a short-sale home from the point of view of a buyer. · One advantage is that you can often get a large discount on the purchase price. Both the homeowner and the bank holding the mortgage are anxious to get the house off their books. As such, the sales price is usually much lower than the price for comparable properties. · Second is that short sales have fewer interested buyers because the process can stretch out over months before a sale is approved. The pool of buyers who are able and willing to tie up their time and investment capital on a property that may or may not sell is usually quite small. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort · Finally, because the homeowner continues to live in the house until the short sale is finalized, you essentially have a live-in property manager who is providing some level of minor maintenance and upkeep on the property. So, if you’re looking for a deal on investment property, keep an eye out for short sales in your area. THE RISKS ASSOCIATED WITH BUYING A SHORT-SALE HOME In a short sale, the lender agrees to accept less than the full amount owed to avoid foreclosing on the property. While a short sale can be a great way to get a good deal on a home, there are also some risks to be aware of. · One risk is that the approval process for a short sale is entirely up to the lender. The seller may say that the sale is approved, only to have the lender later deny the request. This can lead to lengthy delays, and in some cases, the deal may fall through entirely. · Another risk is that repairs may not be covered by the seller. With a traditional sale, the seller is typically responsible for making any necessary repairs before closing. However, with a short sale, the repairs are often the responsibility of the buyer. This can add considerable costs to the purchase price of the home. As such, it is important to be aware of these risks before buying a short-sale property. HOW TO FIND SHORT-SALE HOMES IN YOUR AREA It’s no secret that the real estate market has been hot and a seller’s market in recent years. However, there are still plenty of great deals to be had if you know where to look. Here are a few tips on how to find short sale and foreclosure properties: · Look for a real estate agent who specializes in short sales. This person will have access to a list of properties that are currently in the process of being sold for less than what is owed to them. · Pay attention to off-book listings through Facebook groups. These are often used to advertise short-sale homes and foreclosures. You can also ask your real estate agent to keep you updated on any new listings that come onto the market. · Drive around neighborhoods that you’re interested in and look for homes that appear to be in disrepair. These may be short-sale or foreclosure properties. · Once you have found a few potential properties that you are interested in, it is important to do your research. This includes finding out as much as you can about the property itself, as well as the surrounding neighborhood. In addition, it is important to research the stage of the foreclosure or short sale process that each property is in. · Attend local foreclosure auctions. This