Wealth building in real estate is based on a simple philosophy: BUY AND HOLD. The goal is to grow equity and cash flow over time. It’s the difference between marginal real etate profits and building solid real estate wealth. The basis for this game plan will be what you determine is your target marketplace and going back to the basics of staying with the type of real estate that meets your criteria. Your investment criteria will be unique to you–your goals, budget and investment model.
You want to study your target marketplace and determine the current trends going on in your buy and hold marketplace. Is this market appreciating and at what rate? What makes you believe the trend will continue over time? What forces are affecting this market such as economic and demographic influences? Rental rates must be researched and followed of properties that meet your criteria. What have rents been doing over time and what makes a property desirable for renters in this neighborhood?
If you are starting out, you’ll be buying a home for your residence with the anticipation of having it become an investment for future equity and cash flow. That way in the future you can move to another residence and hold it for equity buildup. And so on. In time you will be able to use cash flow from your first home to defray your living expenses. Buying and selling real estate can become both your job as well as a way to earn cash for future investment. This is where true financial wealth is built.
REAL ESTATE MODELS TO GUIDE YOU IN REAL ESTATE INVESTMENTS
Generally speaking, your best bet for the buy and hold strategy is single family homes and townhomes because they tend to bring the most dependable demand and price appreciation. Multifamily property can deliver the best opportunities for cash flow. In general, that’s why most multifamily properties are purchased by investors that reflect the value of the rents they produce. Rents increase over time at the same rate as the property value appreciates. If property values are declining, monthly rent rates tend to decline. If you invest in areas where rents are in demand due to the demographics and high employment availability, you’ll be protected somewhat by rental market fluctuations. You have to determine whether your goal is for property appreciation and relative stabilty, or you want to build cash flow to increase your monthly income stream. You may decide you are interested in a minimum 3 bedroom, 2 bath, fee simple ownership townhome or duplex in Fairfax County, close to public transportation and commuter routes, priced between $190,000-$250,000, that would bring a monthly rental income of at least $2,400. Typically you want the property to be in updated condition if an older home, or you may decide to invest in newer properties so making repairs to the home will be minimal or not necessary.
Just starting out as a real estate investor you’ll probably not be in a position to pay for your investment in cash. Once you’ve been investing for a period of time, and earned enough equity to pay in cash, you’ll have the ability to act on buying quickly. Also able to purchase at a good discount, when your purchase is not contingent upon obtaining financing. Whether you’re starting out or have been doing this for awhile you’ll want to select the right type of properties where you won’t have an undue amount of competition. Once you’ve been investing you’ll soon be one of those investors you were competing with before! Just remember, as a new investor you’ll want to start small and keep within your comfort zone until you build up equity so you can reinvest in more income property and build up your portfolio.
Your Investment Real Estate Investor Properties (in Fairfax County) and your investment real estate investor profile are determined by your individual goals and budget that determined your preferred individual market criteria. Successful real estate investors select their niche, or specific set of real estate criteria, they want to invest in for maximum monthly income and equity.
Investment Real Estate Investor Properties (in Loudoun County) are found in every price range and can be single family, multifamily, new homes, rehabs, foreclosures or REOs (bank owned real estate). REO foreclosures are listed on the bank’s profit and loss sheets.
Investment Real Estate Investor Properties (in Arlington County). After studying the market with the expert guidance of Gene Mock, Associate Broker, Premier Team, Keller Williams Realty 703-342-8100, you’ll determine your ideal real estate investment property for your individual needs and budget.
UNDERSTAND YOUR TARGET REAL ESTATE MARKET
Knowledge is key in your selected market area. That’s where Gene Mock, your personal real estate investment adviser, comes in. He’s help you stay on top of all market activity, sales and rentals. You can depend on Gene Mock to get you all the latest data on your targeted real estate market, both in sales and rental rates. He’ll guide you through determining your individual economic investing model for buy and hold strategy, so you can be confident about your investment decisions. Smart investors are looking out for excellent investment opportunities all the time, so it’s essential you have an expert looking out for you! You will be educated by Gene to know your parameters for investing in real estate for profit, such as price range, amount of discount to purchase, cash flow you can expect and future appreciation you anticipate. Knowing these ahead of time will ensure your success as an informed real estate investor!
CALL OR TEXT GENE FOR NO OBLIGATION REAL ESTATE INVESTMENT ADVICE AND CONSULTATION
BUY AND HOLD FOR BUILDING REAL ESTATE WEALTH
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