Do you ever watch TV shows like Income Property and Flip or Flop and think about getting into Real Estate investing yourself? An investment property can be a great way to diversify your investment portfolio. Real Estate is the I.D.E.A.L investment because it offers Income, Depreciation, Equity, Appreciation and Leverage. If you’re considering investing in Real Estate there are a few key necessities to keep in mind:
Don’t go it alone…
Real Estate investing is not something to venture into alone. To succeed, you’ll need a team of specialists on your side including:
- a Real Estate Agent
- a Home Inspector
- a Contractor/Handyman
- an Accountant
- an Attorney
- an Insurance Agent
Since investing in Real Estate is all about making a profit, either in the short or long term, you’ll need a Real Estate agent with expertise on the market . Local Realtor, Adam Hubley of The Ruggeri Team at Century 21 Alliance, can search for properties that have potential for profitability by conducting Comparative Market Analyses. Adam can also help recommend methods to reduce costs and maximize profit on your investments. He can connect you with key specialists like home inspectors, contractors and accountants who can steer you in the right direction.
Not every home is suitable for rental, and some properties can turn into money pits rather than a cash cows if there are too many critical repairs to be made before renting. A good Home Inspector will help you identify underlying issues that could hurt your investment.
If you’re not handy yourself, you’ll also want to hire a good Contractor or Handyman. Renovations such as updating appliances and improving kitchens and bathrooms will allow you to increase your rental income and add equity to the home. Sometimes, what begins as a simple remodeling project can take an unexpected turn and become a major renovation. Adam can help you estimate the cost associated with renovations and how it will affect your profit.
A good Accountant will help educate you on the many tax benefits of real estate investment. If you are leveraging your capital (i.e. using funds from a lender to purchase the property) your cashflow growth can be tax free because of mortgage interest payment deductions and depreciation. You can also take deductions for personal expenses related to managing the property.
As you can see, there are numerous benefits to Real Estate investing, but it is not a venture you want to take on alone. Give Adam a call at 856.994.2894 or email firstname.lastname@example.org to get started down the path to the I.D.E.A.L investment.