3 minute read
National Veterans Chamber of Commerce
By: Joseph Molina National Veterans Chamber of Commerce
veteransccsd@gmail.com
There is no doubt that real estate is one of the most popular and profitable investments that have a great deal of potential for success when done correctly. You don’t need any luck to win money in real estate; there is no magic formula. It’s all about studying a potential investment before making any decisions. Aside from that, you should also understand the short-term and long-term benefits of real estate if you want to succeed.
You Can Generate Passive Income
You can generate nearly tax-free passive income by investing in real estate. Even when you are sleeping, your rental properties will make money for you. Instead of spending all of your time working, you can purchase several rental properties that generate enough income to cover your expenses.
You Can Help Provide a Home for Others
One overlooked benefit of real estate investing, specifically residential real estate, is the pride in helping provide a home for others. Everyone needs a roof over their head, but not everyone has the upfront resources to purchase a home, which makes renting the only other option for them. We often hear about landlords shirking their responsibilities and making living conditions downright nightmarish for their tenants. By investing in residential real estate, not only are you helping house a family, but you’re ensuring that the family is housed in safe, healthy, clean, and fair conditions.
Appreciation Planning in Real Estate
Whether you are already in real estate investment or are just starting, you understand that real estate is not a short-term investment plan. On the contrary, the benefits of investing in real estate include the appreciation of capital assets (a.k.a. land) over time. In other words, your property’s value will be worth way more 30 years from now, hence why investors are in it for the long run.
Long-Term Financial Security
Owning a rental property can afford investors a sense of security because of the property’s appreciation in value over time. This means that your property’s value is most likely going to increase because land and buildings are appreciating assets.
Invest When and Where You Want
Investing in real estate is a numbers game. It’s easier to pick and choose when you have an investing strategy to follow and an end game in mind. While you shouldn’t fall victim to ‘analysis paralysis,’ there’s also no reason to jump at the first deal that comes along. Instead, wait for an opportunity that makes sense, then seize the day by sealing the deal.
Equity Sharing Options
The equity sharing model is an increasingly popular way for investors to reap the rewards of investing even if their time or funds are limited. In such arrangements, new investors can team up with time-strapped investors who like funding smart deals. It may benefit any investor to participate in equity sharing. The ability to find excellent deals is incredibly valuable for those attempting to break into REI. There will always be dealfunders available for those who find deals.
A situation in which two or more investors work together to afford, finance, and purchase an asset may be called equity sharing. Everyone involved in sharing equity has an interest in the property. Family members sometimes use equity sharing to help transition mortgaged homes to the next generation.
Family members sometimes use equity sharing to help transition mortgaged homes to the next generation. Equity sharing may be used to: • Divide costs of property and improvements • Divide all profits/losses • Get people in on the same deal with minimal hassle • Allow one investor to live in the home (with the goal of paying off the mortgage) • Develop short or long-term plans for the asset Nominate a Hero: The National Veterans Chamber Radio Show • Would you like to Nominate a Hero? Let us know, and we will announce it on the show. • Would you like to share your story? Then, be our guest on the show - www.vccsd.org/radioshow.html • If you have any ideas or a project that you would like to develop in collaboration with the National Veterans Chamber, please send your ideas to:
