You too, can become one of those people that relaxes while money flow streams in. How? Real estate investing. I'm sure you've considered it before but weren't sure of where to even begin - well, we're here to break it down for you. With years in the industry, we have the experience and knowledge to lead you in the right direction.
- Buy the Property
Finding the right property will take time but once you find it (with our help) the money will begin to flow in. You'll have to choose a property that will generate income by considering factors such as maintenance costs, insurance costs, etc. We can help walk you through step by step. If you're not real estate investment world, we'd recommend finding a turn-key rental property. This way, you won't have the added costs of a flip and will have to do the least amount of hard labor. Even if you have the money, time, and reliable contractors - flipping can be too much for most first time investors.
- Hire a Property Manager
This step is, of course, optional. If you have the time and knowledge to manage your own property, you'll keep more of your residual income. If not, it is definitely worth investing in a trusted property manager. They'll handle rent collection, maintenance orders, and deal with tenants on your behalf. You'll have to decide for yourself if the cost outweighs the headache but most people go this route since it can become time consuming to do this yourself.
- Get a Partner
Relax, we're not trying to set you up like Aunt Laurie. We're talking about a real estate investment partner. Not only will it give you fresh ideas and new perspectives but you won't bear all the weight of the financial responsibility.
- Invest in Real Estate Investment Trusts
If you have the funds for large investments like, multiple homes, malls, apartment complexes, etc then you should look into REITs. They purchase large real estate investments and you have the security of knowing they are legally required to allocate 90% of its dividends to their investors every year. On the flipside, however, these dividends are taxed as ordinary income, which can be an issue if you are in a higher bracket.
- Keep Buying
Hey, the saying holds true: "It takes money to make money". If you really want to become a successful real estate investor then you'll have to continue to buy more properties. Not only will your returns increase but once you have a credible name in the industry, it will be easier to find new properties.