Turning A Profit
Perhaps one of the best ways to make money and build wealth is to invest in real estate. It is no surprise that a majority of the wealthiest people in the world have had their hand in real estate in one way or another. The good news is that there are many ways to make a profit when it comes to real estate investing. In fact, making money in real estate can go far beyond simply buying low and selling high. Here are just a few ways of turning a profit in real estate that are worth considering.
Build Long-Term Equity
For example, the old advice of buying and holding is one of the best ways to make money. Whether it is the real estate market or the stock market this may still be true today. In particular with regard to the buy and hold concept is rental income. It is a smart way to build long-term equity and financial security. This is especially true considering the fact that owning and maintaining a property with a 30-year mortgage as a rental property for three decades ultimately results in an investor eventually owning the asset free and clear. This is an important part of real estate investing that should never be overlooked.
Net A Substantial Profit
In addition, as discussed above another traditional way of making money in real estate is to simply buy low and sell high. Buying a property under market value and then selling it at a competitive price can net a substantial profit. Short sales, foreclosures and fixer-uppers are all perfect targets for those looking to flip a property over the short or long term. If the house is properly staged it can even be sold above market value rendering a substantial and impressive profit. Also keep in mind that returns can be increased substantially through proper leverage.
Tax Advantages And Tax Credits
For example, putting 20% down on a home ensures that you will still receive rental income based on the "full value" of the property. In other words, this assures a generous return on an original 20% investment. No discussion about profitable real estate investing is complete without talking about the tax advantages and tax credits available to real estate investors. Keep in mind that mortgage interest from rental income can be deducted and ultimately result in a tax-free profit. Talk with your Anacortes realtor today to find a great deal on Anacortes real estate as a viable investment.
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