As an investor, you can put your money to work in a variety of ways. However, real estate is the most profitable low-risk investment vehicle easily accessible to the majority of investors.
Your return on real estate investments benefits from the power of leverage like no other investment. Small out-of-pocket costs to acquire real estate produce a much greater return on your invested money and allow you to purchase more investment property.
The Power of Leverage Magnifies These Substantial Investment ROI Components:
- Appreciation. We use our extensive experience in the market to carefully select the best investment properties that will maximize long-term appreciation.
- Cash Flow. We coach lease/purchase agreements between investors and tenants. This tactic attracts more potential tenants, produces higher up front income, provides a more stable investor/tenant relationship, lowers ongoing expenses and enhances your cash flow.
- Tax Benefits. Taxes are your single biggest expense. You can make the tax law work for you. For example, appreciation occurs tax free until the property is sold and then you pay taxes at a reduced capital gains rate. But why sell? You can refinance your property to remove equity TAX FREE! You can reduce your current taxable income at normal tax rates with depreciation and expenses. You can also use a 1031 exchange to shift investments from one property to ore or more other properties tax deferred.
- Debt Reduction. Your tenant makes your mortgage payment! This is a significant component of your real estate investment ROI.
Most people believe real estate investing is more complicated than other investment alternatives. At New South Realtors, we simplify the process for you and make it turn-key. We don’t help you buy it and then leave you to fend for yourself. You can count on us to get it rented and keep it maintained. We manage every aspect for our clients from start to finish.
Our goal is to help our investor clients create wealth by developing a viable plan to meet their specific success goal. We specialize in developing well-balanced, low-risk, low-maintenance real estate portfolios. By using the power of leverage, it’s not unrealistic to expect five-year returns in the triple digits. Let New South Realtors direct you to the right properties and help you buy ahead of the curve.
Frequently Asked Questions
How can I earn great returns when my rent barely covers the mortgage payment?
Rent is only one component of figuring the return on your real estate investment (and it may not even be the most important). You must also consider the appreciation, cash flow, tax benefits, and debt reduction.
How does leverage help my investment?
Your return on real estate investments benefits from the power of leverage like no other investment. Small out-of-pocket costs to acquire real estate produce a much greater return on your invested money and allow you to purchase more investment property. Real estate may be the only investment where you can borrow most of its value. In a rising market this leverage will multiply your returns.
Can New South Realtors help me locate and purchase investment property?
Yes. The most important step in a successful real estate investment is selecting the right property. Not even the best property manager can overcome a poor purchase decision. Over the years, New South Realtors has helped our clients purchase thousands of homes and we know what to look for in an investment property. We have individual neighborhood experts to help pin-point the best candidates.
Can you also manage my property?
Yes. New South Realtors has a comprehensive property management program. Since we manage our own properties, you benefit from first-hand knowledge and experience for your properties. Visit the Property Management section of our website.
What qualifies a mentor as an expert?
To evaluate a potential mentor, make sure you get satisfactory answers to the following questions:
- How many investment properties so you own?
- How long have you been an investor?
- How much of your time is spent developing and executing high net worth portfolio plans?
- What results have you had in your own portfolio?
- How much experience do you have with property management, tenants, and maintenance?
Where can I get money to invest?
If you’re just getting started and don’t have equity in your seasoned real estate investments, you can look at these options:
- Refinance the home you live in.
- Get a second mortgage.
- Take out a Home Equity Line of Credit.
- Look at your existing retirement plans- 401k, 403b, IRA.