Investing in real estate is becoming a common investmen opportunity among many American’s in today’s society. As we enter a new year, take advantage of the inspiration and motivation this season brings to launch you toward achieving your goals in real estate. Whether you are a homeowner looking to buy your first investment property or are experienced with real estate investments and want to grow your portfolio, we can help.
Investing in Real Estate in 2024
Hedge Against Inflation
It’s no secret that inflation has been a major concern for many Americans in the past couple of years. Investing in real estate is one of the best ways to let inflation work in your favor. Real assets, including real estate, often serve as a hedge against inflation because they increase in value with inflation while the cost to own them remains the same.
As the cost of living rises, so does the value of tangible assets like properties. Investing in real estate can help preserve and potentially increase your wealth in times of inflation, providing a level of financial security.
Increasing Passive Income
As you read headlines and hear people around you complaining about the rising cost of just about everything, why not offset the effects of inflation by gaining a stream of passive income? By acquiring income-generating assets, such as residential or commercial properties, investors can enjoy a steady stream of rental income while building equity over time. The New Year is an opportune moment to explore properties with strong rental potential and consider which type of property is the best fit for you.
Consider whether you should invest in a property that is as close to truly passive as can be, like a commercial property that requires little maintenance, or something with a potentially higher rental revenue that might require more property management or upkeep.
Diversifying Your Portfolio
Diversifying your investment portfolio is a fundamental strategy for risk management and financial growth. Even if you already have a strong investment portfolio, consider how adding real estate might strengthen your position.
Real estate offers diversification benefits, as its performance may not always align with traditional financial markets. Adding real estate investments to your portfolio can enhance overall stability and potentially increase returns.
With tax season around the corner, are you considering how to optimize your income and assets for tax purposes? Real estate investors can benefit from various tax advantages, including deductions for mortgage interest, property taxes, and operating expenses. Additionally, depreciation allows investors to deduct a portion of the property’s value each year. Leveraging these tax incentives can significantly enhance the overall returns on your real estate investments.
Financing for Your Investment Goals in 2024
After you decide investing in real estate in 2024 is a goal of yours, the next step is finding the right financing. If you don’t have investors ready to help you pay cash, you need a loan; that’s where we come in. You might be surprised to learn about the creative strategies and solutions we can offer to make your investment goals reality. If a conventional mortgage is not the right fit for you, consider one of our non-QM loan options instead.
Bank Statement Loans
Bank statement loans are a type of Non-QM loan designed for self-employed individuals or those with irregular income streams. Instead of traditional income verification methods, these loans use bank statements to assess the borrower’s financial stability. For real estate investors with fluctuating income or non-traditional employment, a bank statement loan can be a viable option to secure financing. We understand our self-employed borrowers and those with unconventional income streams and can work with you to find a mortgage solution that works.
Cash Flow Investor Loans
Cash flow mortgages cater to real estate investors focused on the income potential of their properties. These Non-QM loans consider the property’s potential cash flow, rental income, and the investor’s ability to manage and maintain the property. Qualification for a cash flow loan is based on the cash flow potential of the property, not on your income. Cash flow mortgages offer flexibility and recognize the unique financial dynamics of real estate investments, making them a valuable tool for investors looking to expand their portfolios.
Ready to learn more about investing in real estate this year and how to finance your real estate investments in 2024? Contact us any time.