It’s true: investing in real estate is a valuable enterprise! Owning a rental property is simultaneously an instant source of income, as well as a long-term investment. These benefits increase as you add more homes to your portfolio. However, real estate investment is not a get-rich-quick scheme. As a new investor, the task of growing your portfolio may seem daunting. While it is a complicated endeavor, there are many resources available to help you build your Texas real estate empire.
Before You Buy
Research is the next step in acquiring additional properties. Locating trustworthy resources such as blogs, websites, books, and podcasts will give you an advantage as you seek out new investments.
Another way to research real estate investment in Alamo Heights is to network. Networking with other investors online or in-person is a fantastic way to gain knowledge from peers. Professional conferences and seminars are just a few examples of tried and true methods to quickly and easily expand your circle. Conferences and seminars enable you to meet hundreds of new contacts in a matter of hours, increasing your network exponentially.
While it requires a little more planning on your part, many investors utilize travel as an opportunity to network within markets that they wouldn’t be otherwise able to explore. To make your next trip a potentially viable business endeavor, make sure that you contact industry players local to your destination before hitting the road. Setting up coffee dates and lunches with peers to talk shop can transform your travel expenses into tax deductions. Don’t leave your meetings to chance and make sure to contact your accountant for tips on how to turn your trip into cash—participating in business-related communication while abroad can make your trip tax-deductible. Other methods of networking include local meetups, professional events, and social media.
Set Your Goals
Once armed with the necessary research, create investment criteria to help you meet your personal goals as a real estate investor. It is important to understand exactly what you want your real estate investments to do for you, so be as specific as possible (what percentage rate you want as a return, what type of properties you want to specialize in). The more concise you can be in outlining your goals, the easier it will be to attain them. Also, before investing, make sure that you have a firm grasp of just how much you can afford. Most likely, you will need some help financing your investments. Make sure you know your credit score and shop around before settling on a lender!
Depending on your goals, registering as a legal entity such as an LLC will help protect you and your assets as you continue to grow your portfolio. Provided that you have structured your business properly, becoming an LLC becomes more critical as you gain real estate. This is because operating as an LLC minimizes liability from potential lawsuits that may arise from tenants or others when moving from single to multiple properties. Another benefit of registering as an LLC is that once you’ve registered as a business, you can treat your work as a business. Perks such as writing off expenditures necessary to the efficient management of your properties are just one of the significant tax benefits you gain by becoming a small business.
Tips for Finding New Real Estate
When seeking out new rentals in Alamo Heights to add to your portfolio, aim below market value. As a new investor, look for properties that will appreciate but do not require a total overhaul. Buying a flip is a risky business for a buyer that does not know all that it entails—and should be avoided for new investors. One way to do this is to contact a local property management company. They have access to many resources, including information regarding off-market tenant-owned properties and real estate agents who can help you purchase these homes. Owned primarily by small investors who cannot afford to make renovations to the properties, or who believe they cannot sell tenant-occupied homes, these landlords are usually eager to make a deal when approached by a buyer’s agent. Although some suggest that multi-property packages are the best option to super-size your portfolio in the shortest amount of time, beginning investors should focus on acquiring single properties. This method allows you time to test the waters before making any huge investments.
Lastly, consider outsourcing your workload to a professional property management company. A company like Real Property Management Campanas is a font of information that can guide you as you build your real estate empire. Working with an outside team of professionals takes away the hassle of hands-on property management so you can focus on growing your investments. with decades of experience, Real Property Management Campanas knows how to take your investment portfolio to the next level through our expert property management services. If you are interested in having your property managed by Real Property Management Campanas, then contact us online or call us directly at (210) 314-1039 today!
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