5 Reasons You Should Invest In Real Estate

Dated: June 3 2020

Views: 438

5 Reasons You Should Invest In Real Estate

 

When it comes to having money one thing for sure is, we all like to spend it. For some people it is Starbucks and Chipotle; for others, it is real estate and stocks. However, you do not have to be one or the other. You can have your real estate and eat chipotle too. The only difference with this combo is that real estate will end up paying for your Chipotle. Here are 5 reasons you should invest in real estate:

1.    Real Estate Offers A Better Return on Investment

    James Harris on Entrepreneur.com says “Historically in real estate, your risk of loss is minimized by the length of time you hold on to your property. When the market improves, so does the value of your home, and as a result, you build equity. The risk never changes in the stock market and there are numerous factors beyond your control that can negatively impact your investment. Real estate gives you more control of your investment because your property is a tangible asset that you can leverage to capitalize on numerous revenue streams while enjoying capital appreciation.

2.    Easier To Get A Mortgage

    It took a while for the dust to settle from the subprime meltdown, but once it did, the industry has a lot more clarity on risk and what types of loans they could begin to offer to the public outside of the traditional programs (Conventional, FHA, VA, USDA).  There are now loan options for self-employed borrowers using bank statements and cash flow, programs for borrowers with large assets but not enough income on paper to qualify traditionally, and multiple programs for investors that are completely asset-based and have no income verification.  Also, most loan programs have reduced the amount of documentation we need to provide for final loan approval, making the documentation portion of the process much easier on the borrower.

 

3.     Tax Benefits

    When tax time comes, you wish you would have bought a house! If you do have a house then you wish you had two, one to live in and one to rent out. “. Investors owning a rental property can write off the interest rate charged on the mortgage as well as write off depreciation, expenses, and maintenance repairs associated with the investment property. “ Victoria Daibes with Mashvisor.com

4.    Cash Flow

    When you purchase a house to rent out, you are earning on average $700+ a month. Let’s say your mortgage is $525. That means you are pocketing $175 a month of positive cash flow. In a year you could have a property that not only pays for itself but also generates cash flow.

   

5.    Investment In Real Estate Can Diversify Your Portfolio

    Brandon, Vice President of Sales from Concierge Mortgage gave us insight. “Compared to other investment strategies, real estate generally and historically has a much lower level of risk.  Additionally, there are multiple strategies that investors can utilize to gain short term cash flow, long term income or even both!  I have found that most people I work with, find it much easier to become an expert in real estate compared to becoming an expert in other investment strategies, especially nontangible ones like stocks.  With real estate, once you learn your target market both geographically and demographically, you are able to, mostly, scale on your own and duplicate your process over and over.  This allows for an even lower level of risk, a higher return on investment and much greater peace of mind!”

Contact us @  Sales@THTHomes.com

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The Haghgoo Team

We understand that buying or selling a home is more than just a transaction: it’s a life-changing experience. That’s why our team of highly-seasoned real estate professionals is dedicated to provi....

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