INVESTING
Investors already know that the key to success is a diversified portfolio. Real estate is a critical component of a balanced investment mix. One of the best aspects of investing in real estate is that it is not a one-size-fits-all approach. I’ve worked with investors of all kinds, from the savvy house flipper to the new landlord. I use my experience to help my clients understand the best investment for their needs and lifestyle, then craft a plan to achieve their goals.
The first step is to understand what kind of investment makes the most sense for them.
- Buy & Hold – The buy and hold strategy is the first thing most people think about when they think about real estate investments. This is exactly as it sounds, the investor buys a property and then holds it for a certain length of time to allow the asset to appreciate. During this time, most of these properties become rental homes and this strategy applies to everything from a simple single-family condo to multi-family apartment buildings.
- Fix & Flip – Flipping houses have become very popular over the past couple of decades. Popular TV shows make it look easy, showing young couples knocking down walls over the weekend and flipping the home for big profits. The truth is that these kinds of investments can be highly profitable with the right property and a professional crew of tradespeople to help.
- BRRRR – BRRRR stands for Buy, Rehab, Rent, Refinance, and Repeat. This approach borrows from both the previous methods and is designed to allow investors to accumulate large rental portfolios. Investors purchase distressed properties at discount prices; after renovations and rentals, the owner can then obtain a cash-out refinance and use the proceeds for their next project – Repeat.
- Vacation Rental Properties – Vacation rentals have become big business and a popular real estate investment. Not only do these rentals net more annual income than a traditional full-time rental, but they also appreciate at a greater rate than other rental properties. The reason is simple. These properties are valued as businesses when sold; often homes in the same neighborhood will sell for tens of thousands of dollars more than their single-family counterparts because the seller can show historical income as a vacation home.
- REIT – A REIT or real estate investment trust is an investment tool where the investor buys shares of a real estate fund or trust. The trust invests in hard-asset properties such as office buildings, shopping malls, hotels, and warehouses, among others. Functioning in much the same way as a Wall Street mutual fund, the shares increase or decrease in value based on the rental income of the properties held.
As you can see, there is a wide variety of options for investing in real estate. My job is to help my clients understand how real estate can fit into their financial portfolio and what kind suits them best. For example, a busy family might not have the time to spend on all the activities required to manage a rental property. On the other hand, someone with a DIY background might enjoy flipping homes part or even full-time.
The first step is to give me a call and let’s talk. We’ll discuss your goals, your budget, and your lifestyle. Then we can build a plan to help you add or increase the real estate element of your investment portfolio and how it can provide wealth-building value.
ANY QUESTIONS?
Call or Text Ashley
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