What are the three ways that real estate investing can make you money? I’ll explain today.
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Today, let’s talk about the three ways you can make money by investing in real estate:
1. Cash flow. This is the money over and above your mortgage, your taxes, your insurance, and other expenses associated with the property. When we find a property that you’re interested in, we can run a quick budget with you to make sure that you’re including all the things that you need to understand happen on a monthly basis—in order to pay X, you have to make Y amount. The point is that we want to get you on the positive side of that number.
2. Appreciation. Appreciation occurs when you buy a home for a certain price and, each year, you see a certain percentage of increase in that property’s value. This can happen through the improvements that you make or just though the normal market appreciation.
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It’s always a great time to invest in real estate because there are always deals out there that can make you money.
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3. Depreciation. Each year the property depreciates, it’ll save you money on your taxes.
At the end of the day, we’re looking to take your money and make it work for you. We can help you find that property that can make you money.
If you have any questions about real estate investing, please feel free to reach out and give me a call. I’d be glad to guide or help you as I can.
