There are many ways you can get started investing in real estate, but there’s no single best way to invest in real estate. At Buckingham Investments we specialize in multifamily investing which can offer robust long-term returns by making money from properties in two different ways: appreciated value of the property over time (which adds to your net worth) and cash flow from rental income. Real estate brings with it multiple tax advantages.
Despite the ups and downs of the real estate market, most properties increase in value over the long term which is called appreciation. If and when you sell your investment, appreciation ensures you sell for more than what you originally paid. The biggest bonus of real estate investment is the cash flow, or the monthly income investors make from rental properties after meeting all their expenses. Ideally your cash flow increases over time, since rents rise with inflation. How much cash you collect depends on many factors (local market, property type, whether you’re paying a management company or contractors, etc.). Real estate is also a good way for a savvy investor to diversify their portfolio. Once you’ve secured renters, owning and renting out property is a great way to make additional income without a lot of effort.
If you’re wondering whether or not real estate investing has a place in your wealth-building plan, sit down and have a conversation with a Buckingham Investments real estate professional. Even if you’re still just weighing the pros and cons of real estate investing, you should talk to a Buckingham Investments real estate agent. We can help guide you into what areas you should look and what potential hurdles you may face as a real estate investor. And when it comes time to purchase a property, Buckingham Investments will make sure you’re getting a great deal that aligns with your goals. For many, the objective of investing in real estate is for future wealth and security; others utilize it for tax benefits and investment portfolio diversification; whatever your objectives, it is imperative that you have a proper plan before getting started so let’s work together on building your strategy.