5 Steps to Real Estate Investing
- Real Estate appreciates over time so the same investment that is giving you cash flow monthly will also increase in value over time. That gain can be realized when you sell the property or refinance it to purchase your next investment.
- Understand cash flow. Know how to analyze an investment with CAP rate and Cash on Cash return in order to determine the ROI (rate of return) on your investment. Your real estate professional can help you with this. (Include formulas on the page- create in canvas)
- Location, location, location! Development and improvements of a property and an area that is growing will help your residential or commercial property not only appreciate over time but give you a greater rental return in the short term as well.
- REITS (real estate investment trusts) and REIGs (real estate investment groups) are a good way to get started and a great alternative to purchasing single investments. They are managed by professionals and are likely to give you a stable return on investment with minimal work.
- Buy & Hold, Annual Rentals, Airbnb and Vacation Rentals- are all great ways to obtain rental income to pay for your lifestyle and create future wealth. Connect with your trusted real estate professional to see what opportunities are available in the area you are interested in. What’s your lifestyle like- how much time do you have to dedicate to managing the process and what professionals like property management companies are available to help if you have minimal time.