| Investing in Real Estate |
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Real estate has proven to be one of the greatest wealth creation tools for centuries.
The simple fact that every person needs a home means that throughout history there has been strong demand for property.
What makes real estate a very powerful investment tool is the concept of leverage. Real estate is one of the few investments where a bank will allow you to buy a large asset with minimal money down. This allows property owners to capture capital gains on the entire property while limiting their personal investment
Rental Properties
Although small investment properties can be purchased with virtually no money down, it is much safer to bring some money to the transaction. With a reasonable down payment it is possible to find investment properties that carry themselves, where rental income will meet the maintenance, mortgage and other costs.
Flip that Property
Everyone has seen the television shows where people make a million dollars having a lot of fun and successfully flipping a property in only a 30 minute episode.
Although we have helped individuals make significant amounts of money flipping properties it is not nearly as easy as on TV. First, these shows were shot in the US before the subprime meltdown which means that buyers could likely get 110% financing on virtually any property if they had a pulse and could sign their name. There are also numerous carrying costs to consider that these shows almost never take into account.
Helpful Articles
Rental Mortgage Insurance Product Sheets
AIG Rental Advantage
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