HOUSING NEWS REPORT
ATTOM DATA SOLUTIONS
MY TAKE ARTICLE FROM HOUSING NEWS REPORT BY ATTOM DATA SOLUTIONS. AnAttorney’s Guide to Real Estate Investing
by Kevin Kim, ESQ., Corporate & Securities Partner, Geraci, LLP
eal estate investments have become an attractive alternative to investing in traditional investments such as stocks, bonds and mutual funds. In fact, it has become a significant method to build wealth for generations. While purchasing a home is a worth- while investment, adding real estate investments to a portfolio can add a powerful hedge and strong founda- tion as compared to the volatile stock market. In this article, we will explore several of the opportunities that real estate investment provides, along with the pitfalls to expect while investing. R
there may not be enough in rental income to provide much profit until after the mortgage is paid off. Once the mortgage is paid off, however, most of the rent collected will become profit. This result is known as a “cash-flow- ing” property. There is another benefit to owning rental property: appreciation. Owners receive all of the financial benefit that comes with the property’s appreciation in value, including any improvements to the property. On top of cash flow, this is the most significant benefit of owning a rental property. Based on the
OWNING RENTAL PROPERTY Rental properties have been around since the nation’s founding and have been a popular wealth generation tool for generations. With a rental proper- ty, the owner is usually responsible for paying the mortgage, taxes, insurance, and maintenance costs for the property. Typically, the investor will purchase a rental property with the hope that the amount of rent received will cover most, if not all, of the costs associated with owning the property. This strategy requires patience, as
44 | think realty magazine :: september 2018
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