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Investing In Real Estate

Multiple streams of income is a goal for many people, and with this comes the stress of learning what avenues are the best. Real estate investing is one of the best forms of secondary income, and when done correctly can launch you into financial security. Mindy Peterson, Realtor with Custom Fit Real Estate Group, is here to tell you the What, When, Why, and How of real estate investing.

Mindy Peterson is a real estate investment expert with Custom Fit Real Estate of Las Vegas, Nevada.

What is Real Estate Investing?

To put it simply, real estate investing is when you purchase real estate to make money. With anything that involves high stakes, you should be prepared for the work that needs to go in to it. You want to know if the juice is worth the squeeze. There are a few real estate investing strategies but Mindy covers to main ways:

  1. Purchasing a rental property
  2. Flipping a house

Purchasing a Rental Property

Investing with rental properties mean purchasing a house, condo, or duplex to rent out. According to Forbes, rental properties will come with more demand and upkeep than most people anticipate. The money that you can make from rental properties also isn’t instantaneous. With time and management your properties will pay for themselves and could help support you for the rest of your life. The cons of rental properties are the responsibilities of finding a reliable and respectful tenet, rental prices fluctuating, and managing the property if you choose to not get a property manager.

Going the route of rental property is a lot of work, so the main question is this the option and right choice for you. If you feel like you are able to handle the responsibilities, this will be an excellent source of income.

Flipping a House

Investing in a home to flip is buying a real estate, putting money into remodeling and upgrading it and putting it back on the market for a higher price that you purchased the home. This can be tricky because you need money for your renovations, and you don’t already have the capital to get the ball rolling you could break even or lose money in renovations.

Home flipping isn’t just about financial investment either, it’s a time investment as well. According to Rocket Mortgage, this whole process could take several months. The pros are it is less risky than other real estate investing, and you could make a huge profit! The cons are there is a potential to lose money, you have to coordinate with third parties like contractors for support, and there can be unexpected costs. Just knowing what you’re getting in to is important to take the plunge in to flipping, so be sure to do your homework.

Why Should You Invest in Real Estate?

There are several reasons why you should invest in real estate, the biggest one being an increase to you cash flow. Instead of letting your money sit in a bank, you can build value on your money over time with real estate. According to Investopedia, investing in real estate builds your wealth and your real estate knowledge. We’re barely scratching the surface of benefits that come from real estate investing.

When Should You Invest in Real Estate?

If you are able to do so, you want to invest in real estate immediately! The longer you wait the more money you could be missing out on, those who bought property 3-6 years ago are already seeing double their investments with the equity growth in the Las Vegas Market.

If you’re unsure if you’re prepared to invest in real estate you should assess your financial standing. Forbes recommends that you make sure your emergency fund is enough to cover six months of expenses. You need to assess your loans, do you have enough for retirement, do you have enough money saved up for extra expenses like maintenance, insurance, fees, etc. without worrying about it putting you in to debt. If you can answer these with confidence and feel as though you are ready to invest in real estate, do it as soon as possible.

How Can You Invest in Real Estate?

There are so many different investing strategies, and which strategy you choose to do depends on your goals and situation. If you need help deciding which option is the best for you, we recommend talking to one of our real estate agents to give you insight on how to move forward with real estate investing.

We love providing you with pro-tips and helpful information so that you feel prepared when buying or selling your home! Be sure to read our other blogs and visit our YouTube channel! Thanks for reading!

Custom Fit Real Estate
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