March 02, 2011

What to Know about Real Estate Investing

In the current real estate market there are plenty of opportunities to invest. Investing in real estate has proven to be a powerful method of accumulating wealth over time. Investors have been able to get a good return on investment in three different ways: cash flow, return on taxes and appreciation. Owning rental properties can provide a regular source of income, while allowing for tax benefits on your investment property. There are several things to keep in mind if you are interested in having rentals. Being a landlord can be a profitable venture, but you want to make sure you are aware of the laws. Fair housing, eviction and collection procedures are all regulated by the government and must be abided by. As the owner of a rental property, you might be able to self manage your properties. However, it might be wise for you to outsource some of the responsibilities to a local experienced and qualified property manager.

Something else to keep in mind when beginning your search for an investment property is your financing of the purchase. The better your credit, the more likely you are to get the most favorable terms. Lenders are aware that people are more likely to default on an investment property than a primary residence. This has led to tighter guidelines for financing. Most investment loans require a bigger down payment and a higher interest rate. Also, keep in mind it is very wise to have a cash reserve after the purchase, to protect your cash flow from unexpected vacancies, maintenance and repairs.

If you are interested in becoming a real estate investor in the local Indianapolis area give me a call or text at 317-413-5311 or email me at . I specialize in Boone, Hamilton, Hendricks and Marion Counties here in Central Indiana.

Posted by: Jeremy Page