Is El Paso Real Estate a Good Investment?
Since property is the most limited resource on the planet, real estate investors find most property investments to be wise choices. Most of the risk involved is in making educated choices of what real estate to buy.
We have all heard the old adage, "it takes money to earn money." It's much like being turned away for a job because you don't have the experience, but you can't get the experience without first getting the job. Once you get started, however, you'll discover that over the long term, your cash flow will become more lucrative once you fix and flip or have rental properties.
Here are a few options for those early investments:
● Save up for your investment! That's easier said than done, but certainly doable.
● Sell stuff! Downgrade to a cheaper car, clean out your garage or attic or sell that jewelry you don't wear.
● Cautiously borrow, but keep it away from friends and family.
● Perhaps develop a partnership, but be cautious who you choose and put everything in writing.
How Does Someone Start Investing in El Paso Real Estate?
Now that you have cash in hand, what's next? This step takes some savvy and it is mostly built upon with experience. In other words, this will get easier as you go, and like with any endeavor, you will make mistakes along the way.
Fixer Uppers or Fix and Flip
There is considerable potential in purchasing distressed or shoddy properties, especially if you have a background in construction, electricity or other building skills. Hence, it bears repeating that in the economics supply/demand paradigm, the key is to buy low and sell high. This endeavor also requires a skillful eye to visualize what it could be with a minimal but sufficient amount of money poured into making improvements.
Short Sales and Other Foreclosures
This method of investing in real estate can be a little hard on the heart because it requires investing in others' losses or deficits. A short sale is defined by debtors agreeing to let the property go at less than what the total debt is on the property. It is much like a car that is repossessed with a negative equity. In this case, if all lien holders and/or individual investors agree to accept less than the amount owed on the debt, a sale of the property can be accomplished. In this category, there is potential for capital gains based on the losses of others.
Investments in Rental Properties
If you are a great "people person," yet a shrewd collector, investing in rental properties may be your forte. Many of today's self-made millionaires fall into that category based on ownership of massive apartment complexes and/or office buildings. Remember that rental properties are not always homes or apartments! Do not overlook the potential in different types of real estate investment.
Perhaps the best bit of advice can be surmised in these few steps:
● Learn all you can about the type of investment you're considering and the investment property itself before you begin.
● Research potential real estate properties and buy with caution and prudence.
● Pay yourself on a schedule so that you can reinvest capital gains after taxes.
Contact our team of experts at Acala Investments today to get started!