3 real estate investing secrets explained
I hear many people that are new to the investing of real estate ascpect, and think they know everything there is to know. Well yes, it can be somewhat easy if you know what to buy and how to make a profit off of these properties. Here are 3 investing secrets explained.
I work with a lot of real estate investors. One person, who has been exteremly successful, has shared with me his
3 real estate investing secrets explained.
1) Make sure that your primary residence is not an investment; it is primarily a place for your family to live. A home offers tax benefits. If financed correctly, it is a hedge against inflation (more on this another day soon) and can provide some long term capital appreciation; but an investment last. Thus you are less affected to short term fluctuations in the market.
2) A rental property must be rented or it can be a very expensive, thus not very profitable investment. He teaches people to own rental properties in places where there are young professionals, a college town, or in an apartment community where there is an on-site leasing and management office with a excellent "low vacancy" record. Some communities are even offering some form of rent guarantee. Don't buy a large home, with a big mortgage, to rent to families. These can be difficult to rent, and costly if vacant.
3) Speculative real estate Investing has to be done prudently, with a different type of real estate than completed single family homes in your "backyard". Commercial real estate (you don't have to be rich) with tenants in a great place to start that will keep you diversified and offers income to pay for your monthly mortgage.
Real Estate can be enriching in more ways than one; but it must be done in a diversified manner and must be financed correctly or what goes up can come down much faster.
For real estate investments in Phoenix , Scottsdale, Tempe, Fountain Hills, and its surrounding Communities like Desert Ridge, and Desert Mountain please call me today at 480.200.9097
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