When you think of real estate investing, what pops into your mind?
For most people just discovering the space, it’s buying a single family home similar to theirs then renting it out. The rent covers any mortgage and repairs plus a bit more to provide some emergency funds and income to cover your time/effort. Over time your home value goes up (equity), get some tax advantages (depreciation) and a bit of cash flow each month.
Equity, depreciation and cash flow are also the main drivers of income on larger properties and combine to make real estate one of the most common places for high income earners to place their money. Real estate is an appreciating asset – it tends to go up in value over time so your money works to make more money.
What’s fun about RE is that you don’t have to own it alone. In fact it’s a real team sport!
- Don’t want to be the one screening tenants or dealing with maintenance issues? Then invest as a limited partner (LP) with a team you know, like and trust to operate the property for you.
- Don’t have a lot to buy the whole thing yourself yet? Team up to buy a property (also called a syndication or joint venture)
- Looking to be part of the decisions to learn about running larger properties and a RE business? Join a general partner (GP) team to get hands-on experience alongside other team members.
Other team members can include brokers, property managers, maintenance vendors, tax accountant (CPA), lawyer, bookkeeper, the list keeps going. The stronger your network, the more robust the business plan is and the faster your investment can grow.
Real estate has a strong track record of building long-term wealth through leveraging equity, depreciation and cash flow. It’s not a get-rich quick scheme, it is a way to invest in the community that is strongly supported by government tax policies and the basic need for housing. It’s a team sport where no matter your goals, you can get started relatively simply and grow from there.
Interested in learning more? Contact us and we’d be happy to help you on the path to building your own luck.