Skip to main content
#
The Trentini Team
my account
site map
contact
cart
our twitterour facebook page
Evansville  Real Estate - Homes For Sale | Indiana Realtors - Agents
Search Evansville & Newburgh, Indiana Properties
Featured Listings
Evansville Real Estate - Homes for Sale | Indiana REALTOR®
Newburgh Real Estate - Homes for Sale | Indiana REALTOR®
Relocating to Southwest Indiana?
Buying and Selling Southwest Indiana Homes
About The Trentini Team - F.C. Tucker Emge REALTORS® - Southwest Indiana REALTOR®

Real Estate Blog
Latest Posts
Categories

 Real Estate Blog 
Monday, May 21 2012

With property prices currently sagging, more and more investors are looking towards real estate as a smart addition to an investment portfolio. Certainly there is money to be made in property, but there is also a great deal of risk involved. Education and experience are the keys to navigating the often-hazardous property market. Here's a quick guide to help you build up the right property portfolio.

Why should you invest?

Property investment carries with it numerous advantages for investors. According to broker and President of Equity First Realty, Ben Yonge, the current down market is the perfect time to capitalize in the property market.

"Real estate prices are so extremely low. Buying an undervalued or distressed piece of property usually means that it can be 'cash flowed' with a nice annual yield if the right tenants are placed," he explains. "Prices are already on the rise so holding cash-flowing properties for the next three to five years should mean substantial gains in appreciation."

Preparing your finances

Gaining the correct financing is often the key to building a great property portfolio. It's always wise to arrange financing before looking at your first property, to avoid losing out to other buyers who may have already secured financing. Many lenders will demand an up-front sum of up to 30 percent as a down payment on the loan, so ensure that you've got the money prepared before proceeding.

Know your market

Buying property is a major investment, so it's important to analyze all the facts before taking the plunge. If you plan on renting the property, Yonge says that the current rental market and total cash required are the two most important factors to consider.

"Buyers need to know where they're buying and should verify that the property can be tenanted quickly," he says. "In addition to purchase costs, buyers must also factor in the costs to bring the property to rental ready condition.

Similarly, if you plan on renovating the property in order to resell it, you should speak with a real estate agent or financial planner to ensure that the investment will be worthwhile.

Taxes

Even the brightest prospects can be sunk by a heavy tax burden. That's why it's always wise to consult a real estate attorney about the relevant taxes before closing a property deal, to identify any loopholes or money-saving measures. For example, investors may be able to sidestep capital gains taxes on an investment property if they have lived in the home for at least two of the last five years, according to the IRS.

Growing your portfolio

Once you've successfully purchased your first property, you can begin growing your investment portfolio. To help expedite the process, Yonge recommends hiring a professional. "Working with a good real estate agent, and preferably a good wholesale brokerage can save a ton of time and greatly increase the number of deals a buyer is able to analyze," he notes. It may be wise to invest in several different types of property to reduce risk in the face of market fluctuations.



Read more: http://www.foxbusiness.com/investing/2012/05/10/how-to-build-real-estate-portfolio/#ixzz1uZXbw9OO
Posted by: Rolando Trentini AT 08:00 am   |  Permalink   |  0 Comments  |  Email
Email
Twitter
Facebook
Digg
LinkedIn
Delicious
StumbleUpon
Add to favorites

The Trentini Team
F.C. Tucker EMGE REALTORS®
7820 Eagle Crest Bvd., Suite 200
Evansville, IN 47715
Office: (812) 479-0801
Cell: (812) 499-9234
Email: Rolando@RolandoTrentini.com


Accredited Buyer Representative

Equal Housing Opportunity

Multiple Listing Service?

REALTOR®

 

Pro Step Marketing

PRIVACY POLICY
The Trentini Team is the sole owner of the information collected on this site. Neither The Trentini Team nor the team associates will sell, share, or rent this confidential information to others. Your privacy is the primary issue for The Trentini Team. 

CONTACT POLICY
By submitting personal information such as name, address, phone number, email address and/or additional data, the real estate client/prospect consents that The Trentini Team or their authorized representative may contact client/prospect by phone, U.S. Postal System, or e-mail whether or not client/prospect is participating in a state, federal or other "do not contact" program of any type.
 
 
Copyright© 2007 The Trentini Team, REALTOR®, All Rights Reserved.