Real estate investing is an option for passive income that can either supplement your current income or it can be an intentional plan to keep it as your only source of income, so you never have to hold a traditional job again.
We all have investments we rely on for the future, for retirement, for a college fund and so on, but diversifying is key. Diversifying one’s investment portfolio is not just related to the stock market and is an important part of any type of investment. Diversification allows you to hedge your bets and essentially guard yourself from risk and loss, because if one of your investments isn’t doing well, another one can keep you in good shape, in the meantime.
As the mortgage rates hit a record low, real estate agents and realtors (www.aminvali.com) are reporting increased activity in the real estate market. Mortgage applications have increased by 18% in June 2020 (compared to June 2019) and will probably keep going up as home buyer and investor confidence continues to increase. However, relative to last year, there are 27% fewer homes available to buy now, this will lead to price increases, bidding-wars and cash offers. Potential homeowners could be reasonably worried about this; however, real estate investors still have great opportunities in front of them for investing in single-family and multi-family properties. Especially, the ones who need to be developed and are not appealing to families who are ready to move in.
A big factor to remember when investing in property is the importance of location. One choice of location is an up and coming area/neighborhood. Investing early on in an up and coming area almost guarantees a big profit since the investment property will go up in value over time with very little effort or development expenses from the property owner. Experienced investors and real estate agents (www.aminvali.com) are pretty good at finding these neighborhoods and maximizing their benefits from it. Realtors and real estate agents tend to have their finger on the pulse and recognize the trends pretty quickly.
Investing, especially at the beginning, is not a one-person ordeal. Successful real estate investors rarely work alone. They work with experienced real estate agents, and other successful investors (Amin Vali Consulting Group). They consult, organize, lay out plans, calculate finances, expenses and potential profits, they look into the potential risks and plan to work around them (Amin Vali Investing).
When buying a home for yourself you can get away with a lower down payment, however, with an investment property you will need a larger down payment. You will need 15% to 20% minimum. This will narrow down your choices of properties based on your intent, the location, and your budget. You then must sit down and do some math, it might be faster and easier to get in touch with a real estate agent who works on investment properties (www.aminvali.com) or with a real estate investment group like the Amin Vali Consulting Group.
You need to calculate the cost of the property you intend to buy, and any expenses you may have before renting the property out including maintenance costs each month or before fixing and flipping it. A common real estate rule is that a rental property should allow you to bring in 1% per month. 1% of the cost of the property after all your expenses. For a fixer upper that you want to sell, you need to determine your profit threshold and calculate the estimated costs for the repairs and the potential value of the renovated property. There are many financial factors to consider when buying an investment property, be sure to do your research and talk to a real estate professional (www.aminvali.com).
Investing in real estate, although a great opportunity, can be tricky because what, where, how much and with whom defines the level of success in a dramatic way. Real estate investment groups such as Amin Vali Consulting Group can ensure that investors invest in the right properties and the right areas at the right time.
Civil Engineer, MBA, Real Estate Agent, Multi-Unit Construction Project Manager in California,
Cell phone: +1(949) 220-1000
Phone : +1(310)925-3878
Web : www.aminvali.com
E-mail : amin@aminvali.com
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Realtor in Zutila.Inc DRE#02104474