3 Ways to Become a Smart Real Estate Investor
With real estate prices on the rise it's a hot topic right now and investing in this growing market is a smart idea. Real estate investing might immediately sound intimidating and make you feel overwhelmed and like you don't know where to begin. Rest assured you actually don't have to be a real estate guru to be a successful real estate investor. With any investment there is inevitably risk, but also great reward. Take a breath and get excited because with Balboa Realty's real estate expertise you will get a piece of it too and can start growing your portfolio. It's not too late for you to join the real estate party! Here are 3 ideas for how you can invest in real estate.
Are you interested in investing in orange county real estate? Call Balboa Realty today: 949-386-8310
Flipping Houses
This investment idea is all intensive, hands on way to make money. This idea is super intriguing and exciting for some people because you get to completely transform a property any way that you wish. Turn on your creative gene and get the juices flowing. Beforehand you must do all of your research and be committed to putting in a lot of effort, sweat, and hopefully not tears. There is a finish line in site and it will be well worth it if you do it right every step of the way. After carefully selecting a property to redo, inspect it inside and out and outline exactly what needs to be done. Then, calculate how much the renovation will cost including time and money and if you need expert advice, contact a contractor or Balboa Realty! You then want to compare the "after repair value" to the value of other houses in the neighborhood to make sure you have an appropriate selling price. You'll also want to compare the original purchase price of the home to the new "after repair price" and that margin is how much money you will make by flipping.
Rent Your Property Out
The rental market will always have demand and can be extremely lucrative. Investing in a rental property will earn you a steady paycheck from tenants over time as opposed to flipping a house will give one large lump sum. Many people choose this route of real estate investment instead because it's much less intensive and it will pay for itself over time. Rental property owners can also claim tax deductions and are entitled to many tax benefits. Want to be completely stress free? Contact Balboa Realty and use their Orange County property management services to manage your property.
A Real Estate Investment Trust
A real estate investment trust also known more simply as REIT, sounds much more formal and complex than it actually is. When you choose this method, you are signing up to increase the amount of real estate in your financial portfolio by purchasing stock in large scale properties. Similar to mutual funds, REITs are made up of extremely diverse stocks ranging from commericial to residential and can be properties located all over the world. These trusts allow you to own a share of real estate without having to maintain, flip, collect rent, or be responsible for the property itself. More advantages of REITs are that they cost less, have lower risk, and yield high returns. Count us in!
Published on Monday, May 22, 2017