REAL ESTATE INVESTING
If you are new to real estate investing or are considering buying your first investment property, there are a few things to consider before you jump straight in. While property can prove to be a great investment, if you don’t do your research there’s a good chance you could find yourself with a property that ends up costing you more than it makes you. To set yourself up for a successful venture into the world of property investment, we have provided some tips to help guide you through the process and come out on top.
Tips for First-Time Investors
Real estate has produced many of the world’s wealthiest people, so there are plenty of reasons to think that property is a sound investment. However, as with any investment, it’s better to be well-versed before diving in with hundreds of thousands of dollars. Arm yourself with information before starting a new career as a real estate tycoon. For more information, Click Here.
Buy and Sell (Flipping)
House flipping is when a real estate investor buys houses and then sells them for a profit. In order for a house to be considered a flip, it must be bought with the intention of quickly reselling. The time between the purchase and the sale often ranges from a couple months up to a year. To learn more about the types of flipping and how to’s, Click Here.
Buy and Hold (Long-Term Rentals)
Buy-and-hold real estate investing is the purchase of rental property with the intention of holding it for a long period. It is the most common real estate investing strategy, with investors expecting to receive monthly rental income and future appreciation. A buy-and-hold real estate strategy can be a good way for beginners to get involved in real estate investing. It’s also a solid strategy for experienced investors who want to build wealth over time from property appreciation and equity buildup. For more information, Click Here.
Short Term Rentals (Airbnb, VRBO…)
The home sharing industry has grown exponentially in recent years after the establishment of Airbnb.com in 2008. Vacation rentals offer a cheap and accommodating alternative to hotels which attracts many guests. Indeed, there is strong demand for short-term rentals in both major cities and smaller towns and villages from tourists as well as business travelers. This is a fact which real estate investors should consider when choosing the optimal rental strategy. For more information about investing in short-term rentals, Click Here.
A 1031 exchange, or tax deferred exchange is a simple strategy and method for selling one property, then proceeding with the purchase of another property (also qualified) within a specific time frame. The process of selling a property and then buying another property are practically identical to any standardized sale and buying situation. A “1031 exchange” is unique because the entire transaction is treated as an exchange and not just as a simple sale. It is this difference between “exchanging” and not simply buying and selling which allows the taxpayer(s) to qualify for a deferred gain treatment. So to say it in simple terms, sales are taxable with the IRS and 1031 exchanges are not. For more information, Click Here.
Best Investing Books, Websites, & Groups
Looking for more resources on your way to Real Estate Mogul? For a list of the best investment books, websites, and local groups (Utah), Click Here.