Real Estate Investment

Step two of building wealth in real estate is looking outside of your primary residence and buying investment properties, to flip or to rent. Let’s take a peek into potential value of investing in real estate. A client’s mother owns 42 homes in DC that are now paid off, still generating around $80,000 of rental income per month. That’s the kind of passive income that translates into real wealth, whether she continues to hold the properties or sells them!

In my last blog, I shared the fundamentals of buying a home, which is many people’s first foray into real estate. But to build real wealth, you’ve got to expand your reach.

Real estate investing is the purchase of a property for the purposes of future income (rental, or sale). Why is real estate investing such a great way to build wealth? Will King of Ntime Capital Investment shares shares his expertise on real estate investing and provides significant reasons why you should consider building wealth using this vehicle. Here are his thoughts.

  1. Limited land and a growing population

  2. Portfolio diversification: land continues to appreciate, making it a safer investment than stock and bonds which can be influenced by many factors including poor investment choices made by stock brokers or fund managers

  3. Tax breaks

  4. Immediate cash flow opportunities (passive income through rentals)

  5. High tangible asset value

There are many types of real estate to invest in: land, residential, multi-family, and commercial. The type of investments you make will be driven by your budget (including available cash), risk tolerance, and other factors.

On top of that, you must become familiar with various types of real estate transactions: wholesale, fix-and-flip, short-term lending, hard money lending, private mortgage lending, short-term rentals, long-term rentals/leases, rent-to-own, foreclosures, and seller financing.

Is real estate investing complicated? Somewhat, and it can be filled with decisions that are often made based upon incomplete information or emotions. Familiarize yourself with the “landscape” of real estate investing before diving in. Done right, real estate investing is a viable way to grow your portfolio quickly and efficiently!

For a much more detailed look into Ntime Capital and the fundamentals of investing in real estate, check out my latest Financial Fed Friday video