We Should All Be Investors.
We love real estate investing and want everyone to become an investor. There are as many strategies as there are people, and at Settle Down we specialize in creative solutions to creating wealth through real estate.
You Should be a Real Estate Investor.
Yes YOU, and it is so much easier than you might think.
They say money doesn’t buy happiness, but we disagree. Everything in life is easier when you have money, and if you are working your a** off each month to pay the bills, are not sure how you will ever retire, want to lie in a hammock and read a book or want to donate more to your favorite charity, money -specifically passive income- makes it a whole lot easier.
So you, yes YOU, needs to invest in real estate.
But I Heard that it’s a Really Bad Time to Buy.
Right now, we are in a really intense seller’s market. If you own your home, you might have even considered selling because you are enticed by how much money you could get for it.
As attractive as those numbers are to have all that cash in hand, you still need a place to live. The minute you sell your house, you become a buyer, and that is not a good thing to be right about now.
Equity is a Superhero.
There is a way to take advantage of this seller’s market and parlay into investing. As the value of your property goes up so does your equity. And on paper, equity increases your net worth, but does nothing for your cash flow. Let’s talk about unlocking that equity and using it to leverage yourself into wealth.
Home equity line of credit. Lenders will typically loan you up to 80% of the value of your home, so figure out what your house is worth (we can help) and see how much equity you could borrow. That money is what you would use to buy an investment property.
Let’s take a look at Eileen. She owns a home that she purchased for $303,000 and owes $261,000 on. Because of appreciation and some improvements, she’s done over the years, this home is now worth about $465,000. She secured a HELOC for $111,000 and used this to purchase a duplex for $225,000 with monthly rents of $1900. The HELOC payment is about $300/month and the $125,000 mortgage to purchase the duplex comes out to about $700 including taxes and insurance. Add the $300 and the $700 and the total cost is $1000 per month and the cash flow is $800 a month with zero out of pocket.
Wondering What Your House is Worth?
For the love of all that’s Holy, don’t ask Zillow, because:
1.They have no idea.
2. The bank is going to get their own appraisal anyway.
Ask us, and even though the bank and the appraiser are going to have the final say, we can help you get an idea of what your current home is worth in today’s market as well as help you find the investment property that cash flows and makes sense with your unique situation.
Now, How do you Plan to Buy an Investment Property in a Seller’s Market?
Go for a stigmatized property. As an investor, you are looking for one of two objectives: cash flow or cash infusion.
If you rent and hold like Eileen did, then cash flow is the goal. This provides passive income, and this is where I want you to start your investment plan.
Look for a property that has been sitting on the market for a bit. (again, we can help) There are certain areas where the buyer demand isn’t as high as everywhere else, but it is still a renter’s market. Finding that sweet spot is the key to getting into your first (or next ) investment property in this seller’s market.
YOU Should be an Investor.
If you are sitting in a property that you own, your credit score is at least 680, and you have verifiable income, most likely, you are prepared to purchase a cash flowing investment property with no money out of pocket.
Real Estate is an Asset that Other People Buy for You.
This ain’t a get rich quick scheme, but is much easier than you probably think, so long as you have the right expert working for you.
This blog covers all kinds of investing topics and strategies and is a great starting point, but you never have to do this alone. We are always a click or call away to walk you through your current situation and show you the shortest path to investing. We consult on both long term and short-term investment plans based on your strategy and situation. We have a network of industry experts to assure that each deal is smooth from start to finish.
CONTACT US today to see how easy it is for you, yes YOU, to become a real estate investor!