Welcome to our new blog about real estate investing and related topics, we will be back to update this introductory post and to add more information about investing in real estate!
Real estate investing is one of the best ways to build wealth over a 10 to 20 year period. Hey, you are going to be working, saving, and setting yourself up for retirement in one shape or form anyway, so it is smart to add this to your investment vehicles and plan. My friend Michael over at Plumber Roswell, GA has gotten started over the last 5 years and has built up a nice portfolio of cash flowing homes. There is no better way to invest your idle cash that is just sitting in the bank whether that be a CD, savings, money market, or what have you. Now, make sure to keep a rainy day fund for the bills and your monthly expenses, but any excess cash is great to invest into a property with rental income coming back to you monthly. It is very common if you find the right deals, to receive a double digit and sometimes triple digit ROI (return on investment) with real estate. Try getting that at the bank, not going to happen. In today’s economy you are lucky to get half of one percent on your deposits.
Hence the reason for this blog, to educate you on the returns that can be expected on real property holdings, or flips depending on how you are able to purchase a house. Sometimes buying a fixer up with your cash is a good way to make 20% to 30% profit on your invested cash into the deal. So maybe you buy for $60,000 and put $15,000 into the house in repairs, and then turn around and sell it for $100,000. After closing costs and expenses, you may have generated a profit of $20,000 so you would have realized a 20% profit on your cash invested. Another good way to put your cash to work is to buy income generating properties that produce monthly income checks to the owner once purchased. You may be able to buy a property for $60,000 that needs no work and rent it out immediately for $900/month. You have just generated an income property for as long as you own it. It will take some maintenance, repairs, and vacancies that inevitably come with property ownership, but much better return than that money sitting in the bank. Do you have any interest bearing accounts where you can earn 15% on your money sitting there? Didn’t think so, which is why real estate investing is superior over other forms of investing. You can control the repairs, the types of customers you allow to live there and much more. Plus the government gives you incentives to own rental property such as depreciation and a nice tax write off.
These are some of the types of topics that we will go into more detail on and discuss on this website blog. I hope you our posts and that you get some real value out of it!
Meanwhile, check out this real estate investing video.