How Real Estate investing Can Generate Wealth

It’s no longer possible to fully depend on savings alone to generate your wealth overtime. The market is always changing and it can be to your advantage! This is where Real Estate comes into mind. It might seem scary to go all in on an investment property but that isn’t the only way to invest! Before we dive into what can really work to build wealth in your life I want to remind you we are not here to tell you what you’ve already heard from gurus. We are here to give you true insight on how wealth develops within your life and people’s lives who are willing to work towards their goals and create something more for themselves. 

Investing in real estate is far more important than buying a forever home right away. Having passive income from past investments in real estate can set you up for life even after you get your retirement funds. Most of the U.S believe that investing in a property means finding one fixing it up and selling it but that is only one way of doing it! Which is known as wholesaling, but there are plenty more options than the reality TV fixer uppers show you. 

Real Estate Career and Education investment

This investment can be described as the inexpensive yet most valuable one. It’s about the least inexpensive investment yet it has a huge reward if you invest yourself in it first. Investthereal has partnered with an outstanding and stress free Real Estate Education Company Colibri Real Estate so that if you are truly interested in having more Knowledge and creating your own personal brand through Real Estate the education for you is a tap away! Having knowledge in real estate allows you to become trustworthy and better capable to make investment and property decisions whether it be commercial properties, Construction, land logistics, REITS, and so much more. Education is the first step to truly understanding the question so many people ask “How’s the Market?”

Investing in a REIT

A REIT is a Real Estate Investment Trust that you can invest in with a company or business partner. This investment needs around $1,000 to $25,000 according to NAREIT .  This is the second to least expensive investment and with this there doesn’t truly have to be money coming out your pocket right away. Overall a REIT is when a company, business, corporation, franchise, or inital investor owns real estate that is profitable and income producing. When investing in a REIT you become a partner or your investment becomes an organized trust directly through real estate by purchasing a percentage of the property or buying up mortgages. This type of investment is or can be publicly done or privatly done, and it helps grow your portfolio, strengthens your potential wealth growth, creates a foundation of networking, allows you access to high-quality real estate and organizations, and it gives you a steady source of income. If this investment seems like the way to go look into our in depth blog on how to invest in one today! 

Rental Investing

This investment can be made in any area that is deemed valuable and in demand soon or in the present. You can make this investment in the mountains, near coastal regions, on the coast, or highly active towns like Nashville, Nantucket, Bar Harbor, Monterey etc. The reason for this type of decision making is because your investment needs to actually be one that is profitable. Although some rentals do well in unfrequented places you want a good start and a good start might not mean a big one so starting small would be good for those who already have enough on their plate. When investing in an unfrequented area you will most likely recieve what is called a “forever tenant” that will stay for most of their life if not all. Expectingly this tenant might come with payment issues and upgraded needs overtime due to comfortable circumstances. 

 

Let’s get back to the in demand rental investment plans…

Investing in a rental within a valuable area might mean you will get off season’s and high season’s of revenue this is why we recommend not going BIG right away. You won’t get your money back right away from these investments but you will sooner than later. For example of you choose a coastal area your main revenue will come from spring, or summer then your revenue will die down a bit as the months grow into fall and winter. However this is not including marketing.

 

 

What is needed to be lawful when making this investment: Consider your income and the income you will make with this property for insurance, tax, and regulation requirments. Insurance is generally a requirment when the person owns the investment depending on location and localized laws. A big factor with this invetment regarding the law is patience, you are required to wait a year before renting out your home if you bought it as a primary residence however this is also a good thing!

Learn more about rental investing in our upcoming blog about rentals and Air BnB’s !

 

Want more info on what can build your success? Click below for related blogs!

Share:

Facebook
Twitter
Pinterest
LinkedIn

Related Posts