The Basics of Investment Property Ownership
 |
Most real estate experts say there is no such thing as getting rich quick in real estate. But there are no end of get-rich-quick programs presented to the public as alternative methods of buying real estate. This information is intended to be part of a long term wealth building strategy. |
| The Power of leverage: | |
| Stocks - Is you
own $100,000 of a stock and it increases 25% in value - you have gained
$25,000 and now have a portfolio worth $125,000.
Real Estate - If you purchase a $500,000 investment property with the same $100,000 invested and a $400,000 mortgage, and your property increases 25% in value - you now have a home worth $625,000 and your investment/equity has increases to $225,000. It's the power of leverage that makes real estate so attractive. To look at it another way, with a 20% down payment you can control five time that amount in real estate ($20,000 down payment on a $100,000 home). Any annual appreciation/depreciation is amplified five time! A small 5% increase in home values can translate into a 25% increase in your amount invested. |
|
| The professionals to assist you: | |
| Mortgage
Consultant - A Mortgage Consultant with experience in analyzing
investment properties and advise you on: - How much and what type of properties you can afford. - Down payment requirements. - Advise different loan options based on your goals and objectives. - Prospective cash flow analysis. Realtor - After understanding your financing options the Realtor will assist you in location prospective properties including assisting your with potential rental amount per property. Property Management - The Property Manager will work to find tenants for your property, collect the rents, coordinate repairs and maintenance, and handle all communication with the tenant. |
|