Investing can be a wise financial decision. It’s a practice that’s hundreds of years old, and can result in cash flow, tax benefits, and appreciation over time.
Purchasing a real estate investment may seem like a daunting task, but the Glazers Realty Team has tools and resources to help.
Why Invest?
A real estate investment often yields financial benefits in the form of rental payments, decreased taxes on rental properties, and a hedge against inflation. Owning a home with a fixed-rate mortgage means that your payments won’t increase when the market inflates.
It’s similar to having a savings account that you don’t have to put money into. While you might have a mortgage payment, you aren’t actually paying it; the people you’re renting to are.
Additionally, many investors experience a psychological benefit as a result of owning real estate. Unlike the stock market, which is invisible, you can see and touch a real estate investment.
Types of Investments
Investing in real estate is a tale as old as time. The typical investment is a home owned by a landlord who rents it out to tenants, but there are a number of other types of real estate to invest in as well.
Single-Family Homes
You buy a home and rent it out to tenants. As the landlord, you’re in charge of paying the mortgage and expenses (such as home repairs) while the tenant pays you rent monthly.
You can then use that rent money to pay for the mortgage of the property, or if you already own it, for your own expenses.
Multi-Family Homes
Purchasing an apartment complex, duplex, or condominium is another excellent investment opportunity. Although your mortgage will likely be greater, you’re renting to more people so your cashflow is increased as well.
Flip That House
You’ve probably seen or heard about home flippers. House flipping is when you purchase a home, typically one that has been foreclosed on, and “flip it” by performing necessary home repairs to increase its value.
Foreclosed and short-sale properties are often undervalues, so you can get them for a better deal. Exercise caution when purchasing foreclosed properties, as they may be in disrepair.
Real Estate Investment Groups
Another investment option is the real estate investment group. A team of investors can take ownership of a property, and then split the profits amongst one another. The maintenance and rental of the property is handled by a third party company for additional convenience.
Eager to Explore Investment Opportunities in Dallas?
Now is an excellent time to invest! People are flocking to the Dallas-Fort Worth area because it’s such a great place to live.
As your Dallas-Fort Worth area experts, we have the resources and tools you need to make a wise investment decision. Contact us today to chat about your real estate goals or to get started today.