Category Archives: Uncategorized

THERE’S NO INVESTMENT LIKE REAL ESTATE INVESTMENTS!

screenshot-2016-12-27-11-49-12

The rules of real estate investing

Investing in real estate, either directly or through funds or real estate investment trusts – or all of the above – can add much-needed diversification to your investment portfolio. However, real estate is a unique investment, so you can’t apply the same rules as you do to investing in stocks or bonds. Here, U.S. News contributors and SMARTER INVESTOR bloggers share their best advice for becoming a successful real estate investor.
Have an exit strategy.
REAL ESTATE STRATEGIES include buying rental properties and becoming a landlord as well as flipping properties, then hopefully earning a substantial profit upon their sale, writes Joel Cone, a business and real estate writer. “Like any investment, real estate investing requires an action plan,” he writes. Some real estate investors have found success with three-year lease options, for example. Think carefully about the characteristics unique to each investment that will make your strategy successful.

Join a local investment club, but don’t attend ‘boot camps.’

Real estate investors often become successful with guidance from other investors. That’s one reason it can be smart for novices to get involved in investment clubs. But be careful not to waste money on unnecessary boot camps or training courses, Cone writes. Browse a local bookstore for information on real estate investing, and avoid getting sucked into expensive seminars and camps.

Figure out what type of real estate investing interests you.

If investing directly in real estate, investors should “choose a specific target market and study it intensely,” Cone writes. “Next, set a goal, form a business plan and establish systems to achieve the desired goal. Lastly, investors should take small, common-sense steps daily toward achieving that goal, such as talking with sellers, owners and local real estate professionals.”

Insulate your portfolio against potential losses.

Investors should set money aside to act as a buffer in case the unexpected occurs. Once an investor has scaled out to a large portfolio of properties, it’s important to have enough CASH ON HAND to rehabilitate 10 to 15 percent of those properties every year. “Be prepared. Plan for the best, but prepare for the worst,” Cone writes. “Insurance is true asset protection. Investors should insure themselves as if the world is coming to destroy them, and insurance is their only defense.”

Investing directly is very different from investing in a REIT.

If you are debating between investing in real estate directly or buying into a REIT or real estate fund, consider the tax consequences. “For many investors, tax deductions and capital gains taxes are integral to their expected return on real estate investments. Those factors are different from those you’d face investing in a real estate ETF,” writes Joanne Cleaver, a U.S. News contributor.

However, funds are a lower-maintenance approach.

Mutual funds and exchange-traded funds can offer a lower-cost way to invest in real estate, writes Barbara Friedberg, portfolio manager and consultant. She points to VANGUARD REIT INDEX ETF as an example of an inexpensive strategy for investing in real estate. “In one fund, the investor accesses a range of property types, including commercial malls, hotels and apartments … If you’re looking for income, REITs are required by law to pay out all earnings,” Friedberg writes.

Your house doesn’t really count.

It’s tempting to look at your own HOME AS AN INVESTMENT. However, property taxes, homeowners association fees, maintenance, insurance and other costs offset appreciation in property values, Cleaver writes. You won’t earn income from your home as you would from other investments. “A real estate investment produces income or appreciates in value after all costs are calculated. Not so with your house,” Cleaver writes.

Look at where millennials are moving.
Millennials are the future of the real estate market, so it may be smart to track where they’re moving and where they’re buying homes. Many members of this generation are renting now, but that doesn’t mean their habits won’t change as they get older. Real estate experts say investors can make money by renting to millennials and then selling to them as they decide to become homeowners, Cone writes. Austin, Texas, Nashville, New Orleans and Denver are just a few of the cities where GENERATION Y IS BUYING HOMES.
Source: CBRealtyCorp
Advertisements

Leave a comment

Filed under Before Buying a House, Credit Scores, Dallas Real Estate, Dallas Texas REALTOR, Flower Mound, Flower Mound Homes For Sale, Fort Worth Texas, Grapevine, Grapevine Texas REALTOR, Real Estate, Texas, Texas Real Estate, Uncategorized

Is Waiting For A Bigger Down Payment The Best Option?

Down payment

Should I Wait to Put Down a Bigger Down Payment?

Some experts are advising that first time and move-up buyers wait until they save up 20% before they move forward with their decision to purchase a home. One of the main reasons they suggest waiting is that a buyer must purchase private mortgage insurance if they have less than the 20%. That increases the monthly payment the buyer will be responsible for.

In a recent article, Freddie Mac explained what this would mean for a $200,000 house:

Read more here: http://buff.ly/1O2bwSQ

Leave a comment

Filed under Uncategorized

Ready To Move In Home For Sale in Flower Mound, Texas

Leave a comment

Filed under Uncategorized

Clearing Clutter Before You Move…

Clearing Clutter Before the Move – What not to Move..

Each year around this time some of us engage in a ritual known as spring cleaning. It isn’t the most popular chore for everyone, but it’s a way of sorting through things to clear out the clutter. If you’re planning a spring or summer move, then now’s the time to get organized, and a good thorough house cleaning is a great place to start, allowing you the chance to get rid of stuff you don’t want to pack. There are items that you really would not want to be moving.

Read more here from what items can be toxic to move!:http://moving.about.com/…/packingtipsand…/a/not__to_pack.htm7629049667c32579494ba65db9892301

Leave a comment

Filed under Uncategorized

How To Attract Affluent Home Buyers…

Interesting information on the image from what Buyers are looking for and would sacrifice! Read more from my March Newsletter here: http://buff.ly/1DJDUoPScreen Shot 2015-03-02 at 7.09.34 AM

Leave a comment

Filed under Allen Texas Homes For Sale, Bartonville Real Estate, Before Buying a House, Coppell Texas Homes For Sale, Dallas Real Estate, Dallas Texas REALTOR, Double Oak, Flower Mound, Flower Mound Homes For Sale, Fort Worth Texas, Grapevine, Grapevine Texas REALTOR, Highland Village, Interest Rates, Mortgages, Real Estate, Southlake Texas Homes For Sale, Texas Homes For Sale, Texas Real Estate, Uncategorized

Jim Striegel Team November Newsletter

http://jimstriegel.housingtrendsenewsletter.com?Newsletter_ID=319

Leave a comment

Filed under Uncategorized

Great Starter/Investment Home For Sale In Keller, Texas!

Leave a comment

Filed under Dallas Real Estate, Dallas Texas REALTOR, Flower Mound, Flower Mound Homes For Sale, Grapevine, Grapevine Texas REALTOR, Highland Village, Lewisville, Mortgages, Real Estate, Rentals, Southlake Texas Homes For Sale, Texas, Texas Homes For Sale, Texas Real Estate, Uncategorized