Invest In Your Future!!
NOW IS THE TIME TO BUY. These words resound repeatedly throughout the real estate market, and for investing, that is especially true. But when it comes down to it, the key question is where can sufficient funding be found??? Investing sounds interesting, but what are the logistics?
If you (or maybe a relative looking for investment opportunity) own your home and there is accumulated equity, you may be sitting on a gold mine! Applying for an equity line of credit or a home equity loan, may be all that stands between you and your dream investment/vacation home. Do you have great credit and are continually inundated with credit card checks in the mail offering your cash for 0% interest??? That's an amazing downpayment source.
In 2009 I had a lump sum of money that I decided to use for investment purposes and I bought three condos in New Jersey. The first was purchased for cash, one was financed via a private investor's mortgage and the third purchased with a traditional HSBC mortgage. Four years later, I rent the HSBC property, which covers all the expenses and is building equite for the future. Number two I recently decided to facilitate purchasing a new car with no loan, and #3 is my "cash cow" which helps me supplement my income.
Recently I had the opportunity to buy a bank owned, one bedroom in my building allowing me to upgrade from a studio to a one bedroom. But in order to insure that I would get the bid, it needed to be a cash offer. I took a credit card 0% cash advance for half and a hard money loan (a source of revenue available to investors on a short-term basis at a higher interest rate) using my "cash cow" property. Six months later, the deal was finally closed and I currently live in a co-op three times larger than my studio with $200 less a month in expenses.
Running the numbers and creative financing is the key to smart investing. Find properties in excellent rental areas and chances are the rent will cover all your expenses as you build equity for the future. If the rental income doesn't add up to at least even loan and expense figures walk away. Possibly occupy that amazing vacation home for two months and rent it out the remainder of the time to pay expenses.
Concerned about the rising cost of education for your kids??? Try buying a "condo for a kid" (a slogan borrowed from another investor) Rent it out for 18 - 20 years and then cash it in for college money. The state of the housing market is immaterial as long as the price is fully covered by rental income.
Is there risk??? There's ALWAYS risk - bad tenants, unforeseen maintenance, a disastrous market. But when investment is done cautiously, running the numbers, the return can far exceed that of a traditional bank account or risky stock investment.
I was terrified at the closing of my first condo, asked myself, "what am I doing" at the second closing, didn't bat an eye at my third, subsequently, bought a co-op in Queens and even took on the expense and sale of my parent's home. Two years later I sold the Queens studio and bought a one bedroom bank owned property.
Each year when I go to my accountant he tells me - "try not to buy anything else this year" but so far I haven't listened. My one remaining goal - a vacation condo in Myrtle Beach or Florida.
So why not take advantage of a "buyers market" to build a better future for yourself and your family. Look into investment opportunities today - and I'd be delighted to help!!