INVESTOR RESOURCES
FINANCING
Back to Basics in 2021
Content provided by Express Capital Financing
late March of 2020, the real estate industry collectively
In
inventory means that there will be healthy competition amongst those looking to buy; however, the simul - taneously lowered interest rates will offer them with plenty of incentive to be on the lookout for attrac - tive properties offering in-demand amenities and features. These two counteracting forces will ensure that the industry as a whole will remain active—the perfect scenario for real estate investors looking to resell fix and flip properties. First and foremost, generating cash flow is a priority—it is what makes rentals an attractive option to the majority of investors. Pas - sive income enables the associat - ed benefits related to real estate investing by paying all the expenses in addition to generating a consis - tent profit in the form of return on investment. This positive cash flow allows investors to cover mort - gage payments while realizing the advantages of appreciation. It fur - ther pays for taxes, insurance, and maintenance costs. Your role as an investor is to comprehend all the ownership costs and ensure that the investment property will continue to generate positive cash flow. Thus, the name of the game is the same in 2021 as it has always been: make sure you uncover all hidden expens -
es to determine an accurate return on investment target to keep your bottom line happy. When it comes to passive income, you can opt to do all the work of property management and main- tenance tasks yourself or hire a third-party property management company. Rental properties offer you several options—the most popular of which is doing all the work yourself in your youthful age and then transi- tioning your real estate portfolio into a truly passive income by brining on external help during the retirement phase of your life. Keep in mind that while maintenance expenditures may increase as properties become old - er, the rental income will also rise to account for them while additional expenditures including mortgage payments decrease in proportion to the generated income. Also note that as the property owner, you are entitled to tax write-offs that include mortgage interest, maintenance, depreciation, legal costs, insurance, and similar costs. Keep all these in mind in 2021 and you will be well on your way to success—regardless of how much things have appeared to change the basics still apply and Express Capital Financing is here to help you succeed. •
appeared to be heading straight off a deep cliff of Grand Canyon pro - portions as the widespread fallout connected with the rapid spread of the coronavirus threw the market into a downward spiral. The real estate market has proven surpris - ingly resilient and has weathered the turbulent economy consider - ably well thus far. The close of 2020 saw unexpected yet welcome price increases in most of the country. Heading into a new year, projec - tions are that the pandemic will soon begin to subside with the antic - ipated increase in immunizations and along with that will hopefully be a jumpstart in the global economy. Taking all of this into account, now is an ideal time to start solidifying your plans for investment moves during the next 11+ months. 2021 is a time where real estate investors get back to basics. Here are some pointers to keep in mind over the course of the coming year to set yourself up for success and profitability. Two of the tried-and-true basic principles of the real estate industry that will remain especially pertinent in 2021 is that inventory will still be tight and interest rates will stick to their near-historic lows. A lowered
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