Did you know that since the 1960s, real estate investment has proven to be the primary generator of wealth? This proven investment strategy has been used for generations to diversify real estate portfolios, increase monthly cash flow, retire more easily and comfortably and achieve financial goals. One of the reasons why investing in real estate is such an effective wealth generator is because of inflation rates. For example, if you bought a home 20 to 30 years ago, during that time you would have paid off the property, its value would have tripled and you could generate positive cash flow every year. To achieve lucrative real estate investment goals, it is necessary to know all the tricks before making such a large investment.
Plan deliberately
You should all try to be more strategic in your investments this year. For example, you need to know your exits before you invest. Perhaps you might consider buying your first owner-occupied home with the intention of keeping it as a future rental. As my friend Jeff Brown always says, "You should have a goal in life, have as much passive income as you can, as soon as you can, no later than retirement, and have as much of it tax-free as possible. »
Order Inspections Before You Buy
Home inspections will alert you to any "red flag" problems. These problems are usually associated with repairs or renovations that may be more expensive than expected. For example, a home inspection could show that the roof needs to be replaced or that there is mould in the basement that needs to be removed before a tenant can move in. These types of "red flags" are good indicators of a good investment versus a high-risk investment. If the problems found during the inspection are not enough to keep you away, consider making a lower offer to purchase.
Get a homeowner's policy
A proprietary policy is an insurance policy that can protect you throughout your tenure as an owner of an investment property and/or property manager. Get a quote for a homeowner's policy before closing a home. By obtaining a quote and/or the actual insurance policy in advance, you can accurately budget monthly expenses and set the rent at a price that will produce positive cash flow.