Archives: real estate investment tips
Wow! Has the real estate market changed in the past few months – and for the better! One of our favorite real estate markets in the country is the Georgia market, and more specifcally, the Metro Atlanta area.
The real estate market in Atlanta Georgia will always be a good investment because of a couple reasons, people will always need a place to live, and businesses will need property in which to conduct their business, or manufacture their products. In this short article we will discuss different ways of investing in properties for rental income.
Real estate in Georgia, and especially around the Atlanta area, can be purchased solely for the purpose of using it as an investment property, or more commonly known as a rental property. First of all you will get some tax deductions due to the fact that it is a business, but you will also be building equity since the property will probably appreciate in value over time.
Once the mortgage is paid, then the rental income is pure profit. This can be a long haul, and the real estate investor really has to have some cash set aside for repairs over the years.
Another way to accomplish much the same thing is to join a real estate investment group, This model works well for investors who don’t want the day to day management of dealing with broken toilets and fixing faucets. The group itself owns several rental properties and the group pools their money for repairs and such. The group has a chance to discuss new acquisitions, and there is some power and safety in a group effort like this. These can be hard to locate, and also one “flake” in the group can really mess thinigs up, so just make sure you know what you are getting into, and with whom.
Also, if you don’t want all the headaches of dealing with tenants at 3 in the morning because their toilet is backed up, you can also employ a management company that can take care of all the important repairs, and some of these companies can even keep the property rented for you.
A real estate investment trust, or a REIT is when investors invest in the trust which owns and manages income producing properties. Shares are issued in the REIT just like a mutual fund, and these shares can be bought and sold just like the shares in a mutual fund. The values of the shares will determine the value of the investment that a person makes in accordance with the amount of money invested.
The leverage in a real estate transaction is much greater than any other type of investment, as in a stock situation, even if you are buying on margin you still have to come up with the purchase money much sooner and for more money than you would with a real estate transaction.
Most mortgages that are conventional in nature require only 25% down and some mortgages only require 5% down, which gives a tremendous amount of leverage to an investor for purchasing investment properties.
These are just a few of the various ways that people can and do invest in Georgia real estate and acquire portfolios with a vast array of investment properties. As in all investments, the investor should plan carefully and assess all risks in light of his or her ability to withstand difficult economic times.
When purchasing real estate in and around the Atlanta area, or any area for that matter, you should always assess the means of getting out of the real estate and doing so with the smallest possible loss. While that is not always possible, one should consider what it will take to liquidate and start over.
That is a serious concern for most real estate investors and it should be considered before investing in any Atlanta real estate investment. Of course if you don’t sell the property, you are not out any money, except for the expenses you will incur in property upkeep, taxes and insurance.
The best advice is to get to know your market and your property both backwards and forwards, and be willing to hold on to your property until conditions are very favorable to sell.
If you are looking for great, off-market wholesale investment properties in Georgia and all around the Atlanta area, you need to check out this company – This Great House L.L.C. They have some tremendous wholesale deals on investment properties at deeply discounted prices for either investment properties as rentals and also properties for fix and flip from Central Georgia to North Georgia with an emphasis on the Metro Atlanta area.
Here is a video that tells you how to get in touch with them –
We have also found another great company that wholesales properties in Metro Atlanta, and here is a short video about them.
Posted in Real Estate Investment