There Are Many Wonderful Ways to Make Money Investing in Real Estate. Here Are Three To Start With.
1) Real estate is accessible:
Real estate is everywhere. It is on every street you drive down. Real estate can be bought, sold, rented, optioned, inherited, gifted, and willed. Access to real estate exists everywhere. Options in the asset class and product type are unlimited in any neighborhood.
2) Real estate is appreciable:
My first real estate purchase was a bank-owned property (REO). The bank foreclosed on a builder during construction. The builder defaulted on his construction loan. I purchased this property for $65,000. The bank also provided $10,000. These funds were for repairs to complete the house. During the first 18 months of ownership, I completed the necessary repairs and then some others. This increased the property value by 64%. I liquidated the house for $118,000. My first lesson was the time factor of money. Real estate appreciates in value over time.
Real estate appreciates in two ways:
● Time. Over time as markets increase so will property values. Sometimes quicker than others
● Increase value through repairs, upgrades, rent increases, and repositioning. This can at times be a forced increase in appreciation.
3) Real estate is financeable:
The greatest fear a beginning real estate investor can have is not having the money to buy a property. That is just a myth. I always teach my coaching clients I work with “when you have a good deal the money will show up.” Thinking through the exit plan reveals the financial strength of the property. Banks will finance 75% of a purchase price for a property that shows profitable income and returns. Dependent on the bank, buyer, and other metrics there are multiple ways to finance real estate.
Looking to learn more about investing in multifamily real estate? Visit my website at MikeMorawski.com