Building Wealth With Real Estate Investment
10 August 2022

Building Wealth With Real Estate Investment

Real estate is nearly always a great investment option. It can generate ongoing passive income and makes for an excellent long-term investment if the value increases over time. It’s a faster way of building wealth than the stock market and is also more stable.

Where to Invest

Nearly any growing area where people are moving to or vacationing can be a smart place to invest. The location of the property is the number one factor that affects its performance and determines the success rate of your investment. Understanding how many renters, both long and short term you can expect, will give you a good idea of the amount of time your property may stay vacant.

Can You Afford It?

Most financial experts warn against borrowing money to purchase an investment property. If you can’t afford to pay cash for the home. Or, if you will use the equity in your primary home, not to max that out in order to obtain the necessary cash. And you should be able to afford the mortgage payments, even when you’re not receiving income from your rental.

Another consideration you need to plan for is the cost of taxes, utilities, upkeep, and repairs. You’ll want to price your rental property to cover those. And if you’re wondering, “Is getting a home warranty worth it?” keep in mind it gives you coverage in case home systems or appliances break down.

Before deciding whether to get a home warranty, check the home inspection report for any red flags and check if there are any existing warranties on appliances and what they cover. If you can, take the net proceeds from the first few months and set it aside for upcoming repairs that will inevitably be needed.

When you’re ready to start looking for a property in Las Vegas, be sure to team up with the professionals at Triumph Property Management.

Buying an As-Is Property for a First Investment

It’s possible to find a property in a desirable rental area at a lower cost if you look for one being sold “as-is.” These properties need repairs that the seller is unwilling or unable to make. As-is may simply mean it’s in need of paint, landscaping, new carpets, or replacing appliances.

Many homes sell as is because the seller needs a quick cash sale because of divorce, or because the property was inherited, or they find themselves in need of fast cash. It’s more than advisable to get an independent inspection to make sure that the repairs needed are not the major structural type, like roofs, foundations, or major electrical or plumbing re-dos.

Protecting Your Personal Assets

Rental ownership is an investment, not a business if you do it to earn a profit, but don’t work at it regularly and continuously, either by yourself or with the help of others.

However, you may want to protect yourself and your assets from litigation by establishing a limited liability company for your investment property business. In order to form an LLC, you can hire a lawyer or use a formation service which is considerably less expensive.

Finding Help for Your Investments

Investing in real estate requires a lot of hard work. And sometimes, you may feel a little overwhelmed with all of the tasks you need to accomplish on any given day. If you’re getting in a little over your head, hiring pros to lend a hand can make all the difference.

This can range from accounting freelancers to individuals who help design websites and manage your social media accounts to promote your properties. Work with a staffing agency in Las Vegas to ensure you’re getting quality candidates for these positions. Staffing agencies can help you find people who are right for the job.

Whether you start out by renting rooms in your primary home, buy a small family home for long-term renters, or even if you choose to invest in a multi-family unit on the beach, it’s a good bet your investment will be one you’re glad you made. Just remember to do plenty of research beforehand regarding your finances, find people who can help you succeed, and consider forming an LLC to protect your assets.

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