Real estate is a powerful investment tool for anyone looking to gain financial freedom and independence. It’s profitable and stable investment choice capable of generating high profit returns. But many investors shy away from real estate investment opportunities because they are under the impression that they need deep pockets to fund properties. Most real estate investors do not fund their investment properties out of their pockets. They get help from trusted financial partners who provide real estate finance sources.
This means that if you find a good real estate investment opportunity, you can also invest even if you don’t have the financial means personally. You’ll need to find a credible financial partner/sponsor and team up with them to get the funds need for the equity portion of the transaction.
Once you start investing, here are some of the benefits you can look forward to enjoying.
# Access to Monthly Stable Income
Investing in real estate opens a reliable source of monthly income. Whether you invest in commercial or residential property, you can rent it out to tenants who will pay monthly rents either in the form of cash or check. If you take the precaution to avoid renting your investment property to a tenant with a history of troubled relationships with landlords or negligent rent payments, your investment property will serve as a source of steady monthly income.
# Long Term Financial Security
If you choose the right investment property, with a prime location and excellent infrastructure, the value of the property will increase over time. This ability to generate steady and usable cash, while appreciating in value simultaneously is a unique feature that is not possessed by many other assets. Before you make a real estate investment, do your due diligence of thorough inspection, and research of both the property and its location, and you’ll end up having an investment property that increases in value over time.
# Enjoy Tax Advantages
One of the major advantages of real estate investment is the tax benefits property owners enjoy. Expenses associated with owning an investment property such as property taxes, mortgage interest, property insurance, management and repair costs, as well as costs for marketing the property to find suitable tenants can be deducted as part of tax benefits.
Additionally, if you sell your investment property for an amount that exceeds the original price, the capital gains will not be taxed if you reinvest through 1031 exchange. If you invest in a real estate property located in an opportunity zone (neighborhoods in need of investment), you will be charged even lesser in capital gains on the sale of your property.
# Cover Mortgage Payments
If your investment property is in a prime area with demands from multiple potential tenants, you can take advantage of the high-demand and rent it to a tenant willing to pay the most amount in monthly rent. With this you can easily cover your monthly mortgage payment and keep the remaining amount as savings or spendable cash. This will help to solidify your finances even with your ongoing mortgage payments.
With the right investment property, real estate investment can be a great way to diversify your investment portfolio and get access to a monthly income much more than dividends from stocks and bonds. All you need to do to get started is find a financial partner who can provide you with the right real estate finance source Nationally.
If you’re looking for real estate development financing in Nationally, Black Collie Capital can help you with all your financing needs to kick start your investment career. Visit their website to learn more about their services.