REAL ESTATE INVESTING
Real estate can be a great way to build wealth, but it takes a completely different mindset. While buying your primary home is largely an emotional decision (does it fit the needs of your family?), investing in real estate is purely logical and numbers-driven. Some prefer this aspect, and others don’t! There are many different real estate investing strategies out there, though arguably the most common method is buy and hold investing - purchasing a property, maybe doing some small renovations,
LEVERAGE
Borrowing money (leverage) is one of the main ways to juice your returns in real estate. However, it does come at a cost. Do you want to use traditional bank financing to purchase your property? Or will you fund it with cash, HELOC, or private money?
ROI
Your return on investment is very important… otherwise, what is the point!? Does your property cash flow once you subtract all expenses from rent? Do you make a profit? How does that ROI compare to other investment vehicles you could be putting your money in?
TAX IMPLICATIONS
Owning rental properties can also be very beneficial on your taxes, as you can typically deduct property expenses from the rental income received. And if you’re a real estate professional, you could deduct those expenses against your earned income! Before taking the leap, consult with your CPA to make sure you’re aware of all the tax implications.
Contact
Interested in a real estate investing consultation? Reach ou
Alexy Realty Group, Affiliates of Fathom Realty
600 Park Offices Drive Suite 300, Durham, NC 27713 USA