WHAT IS A DUPLEX AND SHOULD YOU INVEST IN ONE?
Are you thinking of investing in real estate but aren’t sure where to start? A duplex might be a good option for you. But what is a duplex, exactly? And is it the right investment for you? A duplex is a type of property that is becoming increasingly popular with real estate investors. At MY SMART COUSIN, we want you to get into property ownership! We can help by providing expertise and resources for budding Real Estate Investors, and homebuyers of all stripes–especially those looking to buy a house for the price of a car! As Real Estate Investment Coaches, we work closely with aspiring real estate investors, focusing especially on Black and Brown folks and women, to position you for success in developing and executing your plan for investment and building generational wealth. In this blog post, we’ll answer questions on how to purchase a real investment property and the pros and cons of duplexes. So keep reading to learn more about duplexes and whether they are a good investment for you. WHAT IS A DUPLEX HOUSE AND WHAT ARE THE BENEFITS OF OWNING ONE? A duplex is a two-family property that has two units, typically side-by-side or one on top of the other. Duplexes can be owner-occupied, with one unit rented out to generate income, or they can be purchased as investment properties, with both units leased to tenants. There are several benefits to owning a duplex. · First, duplexes offer an affordable way to enter the real estate market, since they typically cost less than the price of two single-family homes. · Second, they offer the opportunity to generate rental income, which can help offset the cost of ownership. · Finally, duplexes offer flexibility in terms of living arrangements: owners can choose to live in one unit and rent out the other, or they can rent out both units and live elsewhere. Ultimately, owning a duplex can be a smart financial decision for those looking to invest in real estate. HOW DO YOU KNOW IF A DUPLEX IS A RIGHT INVESTMENT FOR YOU AND YOUR FAMILY? When it comes to investing in Real Estate, there are many different options to choose from. For those who are looking for a solid investment that will provide income and appreciation over time, a duplex can be a great option. But how do you know if a duplex is a right choice for you? There are a few things to consider before making this important decision. · First, take a look at your financial situation. Do you have enough saved up for a down payment? Are you comfortable with the amount of debt you would be taking on? Be sure to consult with a financial advisor to get a clear picture of what you can afford. · Next, consider your goals for the property. Are you looking for an investment that will generate a rental income? Or are you hoping to live in one unit and rent out the other? Make sure that your goals align with the type of property you’re considering. · Finally, think about the location and condition of the duplex. Is it close to public transportation and other amenities? Is it in need of any major repairs or updates? These are all important factors to consider when making your decision. By taking the time to think about these things, you can be sure that you’re making the right choice for your needs and goals. A duplex can be an excellent investment, but it’s not right for everyone. Be sure to do your research before making any decisions. WHAT ARE THE RISKS AND CONSIDERATIONS ASSOCIATED WITH INVESTING IN A DUPLEX, AND HOW CAN YOU MITIGATE THEM? One of the biggest considerations associated with investing in a duplex is determining whether you prefer to live far away from your renters, or a door knocks away. In many ways, renting out a duplex is like having a roommate upstairs or next door. If you prefer privacy or even anonymity when it comes to renting to a tenant, then a duplex may not be a great option. A related consideration when investing in a duplex is the potential for tenant turnover. If you rely on rental income to make your mortgage payment for the property, you could find yourself in a difficult situation if your tenant moves out unexpectedly. To mitigate this risk, it’s important to have a good relationship with your tenant and to keep your property well-maintained. Also on the list of risks is the possibility of damage to your property. While this is a risk for any investment property, it hits especially close to home if the damage affects the unit you live in as well, causing both a major financial setback and disruption to your family life. To protect yourself, it’s important to vet your potential tenant and purchase an adequate amount of home insurance. Finally, it’s important to be aware of the potential for increased maintenance costs. A duplex is essentially two homes wrapped in one, which means that there are twice as many potential problems that can arise. By budgeting for unexpected repairs and setting aside money each month, you can help cushion the blow if something goes wrong. While there are some risks associated with investing in a duplex property, there are also ways to mitigate those risks. By being prepared financially and maintaining a good relationship with your tenants, you can help protect yourself from potential pitfalls. ARE THERE ANY OTHER COSTS ASSOCIATED WITH OWNING A DUPLEX THAT INVESTORS SHOULD BE AWARE OF BEFORE MAKING THEIR DECISION? When it comes to duplexes, there are a few things that potential investors should keep in mind. · First, duplexes typically require a higher down payment than a single-family home. This is because lenders view them as more risky investments. · Additionally, duplexes also come with higher monthly carrying costs, such as property taxes and insurance premiums. · And finally, if you’re planning on living
HOW TO BUY INVESTMENT PROPERTY IN SEVEN SIMPLE STEPS
Are you thinking of buying an investment property? If so, you’re in good company. Investment property is a great way to grow your wealth, and there are plenty of opportunities out there for savvy investors. But buying an investment property can be a daunting prospect, especially if you’re not familiar with the process. One little-known but very valuable real estate investment strategy is to target the low end of the market. At MY SMART COUSIN, we specialize in helping new property investors conceptualize, fund, and build their Real Estate empire. As seasoned Real Estate Investment coaches, we work with clients to penetrate the lucrative market of buying a house for the price of a car, or buying at a higher price point if preferred. Our expert team works with aspiring homeowners and investors, with a special focus on Black and Brown folks and women, and customizes a tailored strategy and roadmap to gain entry into the real estate industry and thrive. Are you looking for ways to invest your money and see a good return? If so, buying an investment property may be the right choice for you. But, investing in Real Estate can be tricky – especially if you’re new to it. That’s why we’ve put together this guide on how to buy an investment property. Keep reading for steps that will help make the process smoother and more successful. WHY BUY AN INVESTMENT PROPERTY? When it comes to investing in real estate, there are many different options to choose from. However, one of the smartest choices you can make is to invest in an investment property. Here are three reasons why an investment property is a wise choice: · First, an investment property will provide you with a steady stream of income. Unlike other investments, such as crypto, precious metals, stocks, and bonds, an investment property will generate rental income that you can almost set your watch by every month. This rental income can help offset the costs of the mortgage and other expenses associated with owning the property. · Second, an investment property can appreciate over time. While housing prices have cooled some since the Spring-time highs earlier in the year, prices remain robust throughout most of the U.S. due to high demand among renters for affordable housing. This underlying foundation will likely support the value of investment properties for many years to come, providing solid annual returns when you eventually sell the property. · Finally, an investment property can offer significant tax advantages. The IRS allows owners of investment properties to deduct a portion of the mortgage interest paid on their taxes. This deduction can save you thousands of dollars each year, making it easier to afford your monthly mortgage payments. Buying an investment property is one of the smartest choices you can make when it comes to real estate investing. With a steady stream of rental income and potential for appreciation, an investment property can offer significant financial rewards. And with tax advantages that can save you money each year, owning an investment property is a wise choice for any investor. SEVEN STEPS ON HOW TO BUY AN INVESTMENT PROPERTY 1. FIGURE OUT JUST HOW MUCH YOU CAN AFFORD Just because a property is a good deal doesn’t mean it’s a good deal for you. If you can’t afford it, then it likely will be a terrible and painful investment. Be realistic about your budget and make sure to factor in all of the associated costs, such as repairs, preventative maintenance, property insurance, and property taxes. Once you’ve done this, add a contingency factor of ten percent, or more, to account for any expenses that were under-estimated, or never estimated at all. As the old saying goes, you don’t know what you don’t know. Thus the reason for a contingency: is to add a fudge factor that helps absorb these expenses. 2. RESEARCH THE MARKET Not all investment properties are created equally. It’s important to do your homework and understand the market conditions in the area where you’re looking. Look through news articles and property valuations to see what the trends have been over time. Likewise, read forward-looking city plans and local economic reports to see what’s on the horizon for your target market. If an environmental hazard has recently occurred in the area with the little political will or economic focus on fixing it— think Flint, Michigan’s water crisis in the early days— view these as red flags. 3. GET PRE-APPROVED FOR A LOAN Once you know how much you can afford to spend, it’s time to start talking to lenders. Getting pre-approved for a loan will give you a better idea of what kind of interest rate you can expect to pay, and will help streamline the property-investment buying process. You want to ensure that when you make a purchase offer, you can actually follow through on it if it is accepted. Lining up financing in advance will lend credibility to your offer. 4. HIRE A QUALIFIED REAL ESTATE AGENT A good real estate agent will have experience with investment properties and will be able to guide you through the process of purchasing an investment property, which can differ from purchasing a primary residence. An investor-focused real estate agent can also offer helpful advice on negotiating prices and finding contractors. 5. MAKE AN OFFER ON THE PROPERTY When you find a property that you want to buy, your real estate agent will help you make an offer that takes into account the current market value of the property as well as any repairs or upgrades that may need to be made. 6. HAVE THE PROPERTY INSPECTED Hard money and other non-conventional lenders may not require a property inspection. That said, a property inspection can still play an important role, especially for new investors. An inspection shines a light on what needs to be fixed or replaced, and how urgently. This information is vital in helping to determine the fair market value of
THE BEST SHORT-TERM INVESTMENTS AND STRATEGIES
Making investments can be a great way to supplement your income and grow your wealth. But what are the best strategies for earning a good return on your money if you’re targeting a relatively short period of time? Applying the right strategy at the right time always creates a win-win situation for you. At MY SMART COUSIN, we’re here to help you get into the property ownership game and do what few others do— buy a house for the price of a car. Whether you are limited by lack of funds for a down payment, high housing prices, or lack of real estate opportunities in your area, don’t let that stand in your way, come talk with us. As Real Estate Investment coaches we specialize in working with aspiring investors and homeowners, especially Black and Brown folks and women. Our objective is to help you reach your home or property ownership goals quickly, effectively, and at a low cost, by teaching you everything you need to know before purchasing a property, from evaluating the dwelling condition to structuring the deal, to shaking loose free and low-cost financing. If your focus is directed at the here-and-now horizon and how to find investment opportunities that can be executed quickly and yield cash flow for immediate goals, we’ve got you covered on that front too. This blog post will dig into a few short-term investment and strategy ideas for anyone seeking to generate returns in a short time period, specifically: · High-yield accounts and certificates of deposit. · Dividend-bearing assets such as REITs, or real estate investment trusts · Inflation-indexed bonds, also called I-bonds. · Gold, silver, and other commodities, as a hedge against inflation · Peer-to-peer lending opportunities HIGH-YIELD SAVINGS ACCOUNTS AND CERTIFICATES OF DEPOSIT When it comes to short-term investments, one tried-and-true vehicle is high-yield savings accounts. These accounts typically offer higher interest rates than traditional savings accounts, meaning your money can grow faster. Average high yield rates for the month of July 2022 range from 1.2% to 1.9%. Since these funds are FDIC-insured, you don’t have to worry about losing your hard-earned principal and interest. Another option is a certificate of deposit or CD. These are typically offered by banks and credit unions, and also offer higher interest rates versus standard savings accounts. One downside of CDs is that you typically have to keep your money in the account for a set period of time or you’ll be charged a penalty. However, if you’re looking for a safe place to park your cash, a CD can be a good option. CD rates have climbed out of the decimal-dust territory, as inflation and interest rates have risen. July 2022 rates for deposit terms ranging from one year to five years are in the low to mid two percent neighborhood, at 2.3% to 2.9%. If you currently have a certificate of deposit that will mature soon and you are interested in rolling it over, check with your bank first to ensure that it will renew at today’s higher rate. Likewise, discuss with your bank if you would like a CD that is the same duration as your current CD (as, for instance, five years), or if you would like to change the duration to something longer or shorter (generally, the longer the term, the higher the interest rate). REIT INVESTMENTS REITs, or real estate investment trusts, are mutual funds of sorts that invest in a collection of real estate assets. The assets can be grouped by property specialties, such as hotels and lodges, or grouped more broadly by type, such as residential properties. REITs are required by the Securities and Exchange Commission (SEC) to dividend at least 90% of their earnings to the REIT shareholders. As a consequence, the dividend payout levels for REITs can be hefty relative to other mutual fund baskets. REITs, like stock investments, can be risky, so do your homework and research the property class and asset management team before investing. INFLATION BONDS Bonds are another option and work particularly well for investors who prize stability and low risk over returns. When you invest in bonds, you’re essentially lending money to a government or corporation. In exchange for your loan, the entity that issues the bond agrees to pay you interest payments at regular intervals and return your principal investment when the bond matures. The downside of bonds is that they typically don’t offer as much upside potential as other investments. A particular bond type that is gaining new fans in today’s inflationary market is inflation-indexed bonds, also referred to as I-Bonds. I-bonds are issued by the U.S. Treasury and sold through their website, TreasuryDirect.gov. The interest rate on I-Bonds being offered through October 2022 is 9.62%. The bond has a 30-year maturity term although you may cash it before then. GOLD OR SILVER AS A HEDGE AGAINST INFLATION When it comes to protecting your finances against inflation, gold and silver have long been considered the go-to options. And for good reason: both precious metals have a long history of maintaining their purchasing power, even in periods of high inflation. Gold and silver can also be easily bought and sold, making them ideal for short-term investors. Other inflation-resilient commodities include oil, lumber, and agriculture. These commodities tend to pass on higher prices— witness the higher prices at the gas pump— when inflation rises. Opportunities for investing in these commodities include index funds and mutual funds PEER-TO-PEER LENDING Peer-to-peer lending is a great way to earn some extra income without having to put up a lot of money upfront. And with the advent of peer-to-peer lending platforms, your potential lending circle as a short-term investor is greatly expanded. Peer-to-peer lending sites post potential lending opportunities and act as middlemen handling payments and associated paperwork. FINAL THOUGHTS So there you have it, a few short-term asset, bond, and savings fund-based investment options to consider for generating cash flow. If you want to make your
A BEGINNER’S GUIDE TO A LEASE OPTION AGREEMENT
Are you thinking about buying a home but don’t want to commit to a mortgage just yet? With the average cost of a house peaking just north of $400,000 in May 2022, it’s no wonder that you’re on the fence. But what if I told you that there are still deals aplenty to buy a house for the price of a car, even in this sizzling housing market? At MY SMART COUSIN, we help aspiring property investors, and particularly Black and Brown folks and women, get into the home ownership and real estate investment game. As seasoned Real Estate Investment coaches, we help you find the right property, analyze and structure the deal, obtain free money as well as lender financing, and close on the transaction. We also help you discover the many channels where you can find a quality, low-priced homes, and invest as a homeowner, a buy and flip investor, or a buy and hold property owner. One vehicle for financing properties is through a lease. I have never heard of a lease option agreement, also sometimes referred to as a rent-to-own agreement, don’t worry – you’re not alone. A lot of people don’t know about this powerful tool for acquiring and selling properties, but it can be a great way to get started in building a portfolio. In this post, we’ll explain what a lease option agreement is and how it works. Read on to learn more! WHAT IS A LEASE OPTION AGREEMENT AND WHY SHOULD YOU USE IT? A lease option agreement is a contract in which the renter has the option, but not the obligation, to purchase their rented property, either during or at the end of their lease term. There are many benefits to using a lease option agreement, especially for those looking to eventually purchase their own home, or as an alternative to the method of selling a property, you already own. By entering into a lease option agreement, the renter can lock in the purchase price for the home and thus mitigate the risk that upon the purchase several years later, the future price is significantly higher. Additionally, a renter can qualify for a mortgage-type loan from the landlord in ways that their FICO score or financials might not allow them to. Lastly, lease option agreements often come with built-in flexibility, allowing the renter to choose a custom lease term length, typically ranging from two to five years. As a result, lease option agreements can be a great way to secure a future home purchase, buying into a neighborhood and home that you’re already familiar with and like. HOW TO CREATE A LEASE OPTION AGREEMENT A lease option agreement is a contract between a renter and a landlord that gives the tenant the right to purchase the property during or at the end of the lease term. The key terms of a lease option agreement include a non-refundable upfront payment which serves as an option fee giving the renter the right to purchase the home ahead of any other offers that the landlord might consider, and rental payments which often include an adder of $100 or more that is credited to the purchase price of the home should the renter choose to exercise their option to buy, the duration of the lease, property maintenance requirements— sometimes the renter pays some or all of the maintenance costs during the lease, and whether the tenant has the exclusive right to purchase the property. beylikdüzü escort bayan, gaziantep escort, ataköy escort, esenyurt escort, seks hikayesi, kayseri escort, şişli escort, beylikdüzü escort, beylikdüzü escort – If the lease contract includes an added payment that can be credited towards the down payment to purchase the home, the renter should ensure that this payment is placed in an escrow account. Doing so can facilitate the refund of these funds, should the renter not purchase the home. – If the purchase of the home at the end of the lease will occur through a balloon payment, the renter will need to ensure that they use the intervening lease period to get their credit score and finances in order so that they may qualify for a mortgage. – The term of a lease option is typically two to five years. This time period provides comfort to both parties. It is long enough for many tenants to begin the process of qualifying for a mortgage, and short enough for property owners to feel secure in fixing the purchase price 2 – 5 years into the future without risking a substantial and unforecasted run-up in prices, leaving them with unearned profits THE BENEFITS OF A LEASE OPTION AGREEMENT Importantly, a lease option agreement is an arrangement between a landlord and tenant that gives the tenant the flexibility to purchase the property at a later date, usually at a pre-determined price. There are several benefits to this type of arrangement. · First, the tenant may be able to pay, little by little, towards the eventual purchase price of their home while still renting it, through the added payment to the rent. This additional payment provides the tenant with a running start towards building equity in the home and can be used towards the down payment that a mortgage lender will look for when financing the purchase. Depending on how the contract language is written, the added payment may or may not be refundable if the tenant does not exercise their purchase option— renters will want to pay special attention to this section of the lease agreement, including hiring a lawyer or property investment advisor to assist. · Second, the lease option agreement may give the tenant additional time to qualify for a mortgage. This can be beneficial for tenants who are self-employed, have poor credit, or face other challenges that make it difficult to obtain financing. · Finally, the lease option agreement may give the lessee greater flexibility in terms of making changes to the property,