Building Wealth through Real Estate Investments

Real Estate

Most people mainly think about real estate as buying their own home, but have you ever considered acquiring properties other than the home you live in as an investment? Think about it ... an investment in the stock market goes up and down, and so does real estate to some degree.  What real estate won't do, however, is “go away.”

The glossary section of my Real Estate textbook notes this as the definition of real estate:

 “Land; a portion of the earth’s surface extending downward to the center of the earth and upward infinitely into space, including all things permanently attached to it, whether naturally or artificially.”

 A powerful statement isn’t it?  Yes, things can happen to whatever is attached to the land, but you carry insurance to protect that. The land is always there. It doesn’t go away. Purchasing income property is a great way to build wealth, and it can do that in two ways: by the value of the property appreciating, and by generating an income stream through rentals. You can even combine buying a home to live in as a primary residence with real estate investing by buying a multiple family home and occupying one of the units. The rents can help you to qualify for a larger mortgage, which can be a huge boost when buying your first home. 

 The following article talks about acquiring real estate as an investment, but any article you read on the subject will mention that having a knowledgeable and trusted real estate agent should be one of your first steps when considering this lucrative way to invest in YOURSELF.

Call me anytime and I will tell you stories of how I personally, and also many of my clients, have successfully gained wealth through real estate investments.    ~ Jeanne


Why an Investment Property Should Be Your First Real Estate Purchase

 Not ready to buy a home for yourself but want to take advantage of great market conditions? Consider buying an investment property! It's a trend that's taking over real estate, as savvy investors look to put their money in an appreciating asset. Here are five reasons to consider it.

1. Rates are crazy low. Lower rates mean more affordable lending, or more for your money if you choose to reach higher.

2. Because it will appreciate. According to CoreLogic, "The overall home price index (HPI) has increased on a year-over-year basis every month for seven years." The long-term price appreciation of real estate can provide one of the safest investments out there.

3. Because passive income is good. Yes, it's nice to know there will likely be appreciation over time, but the real key to success with investment properties is passive income.

"The best part about rental properties is that they provide a stable income," said Mashvisor. "What would be better than having a check sent to you every month? In order to have positive cash flow, you have to make sure you invest in a profitable rental property."

4. To turn it into a short-term rental. The short-term rental market has opened up a new world of opportunity for investors. By buying in the right location—by the beach, near a ski resort, or in close proximity to a popular annual event like Coachella, you have the potential of making a significant return in a short period of time. Just be sure to check the local laws, as lots of cities have been cracking down on Airbnb and other services.

5. Because it can help you buy the home of your dreams down the line. "Buying an investment property before your first home does not imply that you won't have the funds to purchase your actual home at some point," said Mashvisor. "In fact, investment properties that have been purchased wisely and have grown in value can offer you a sizeable amount of wealth and equity."