Dc Fawcett – Tips on 5 things every real estate pro knows – the 5 star

There are 5 necessary strategies that all real estate investors should learn as reviewed by DC Fawcett

Introduction

Real estate investors should know the ins and outs of the business which they usually do. They can employ many ways to do this. He can hire a real estate agent, research books, browse the internet, read articles related to real estate, converse with similar people, attend real estate conferences and so on. For initial investors it can be difficult but as time goes by it will become easier.

Tips-on-5-things-every-real-estate-pro-knows

DC Fawcett’s review on the 5 tricks that every real estate investor should know is simply great and will provide substantial guidelines for real estate investors.

Analyze local prices

A real estate investor should compare average home prices and current price patterns in his area with the neighboring localities. This will help him to understand where the best market is.  Also over the time this helps him to comprehend which is a bad price, a good price and an over price. He can source out these price trends from the local newspaper, the internet or the town hall. Or even better he can hire a real estate agent.

Look for rapidly developing areas

Real estate investors should look for areas which are developing fast.  Developing areas generally show some clear signs such as construction of new buildings and schools, development of new infrastructure such as roads, railway stations and bus stops, widening of lanes which are main roads, the erection of new traffic lights and so on. Also information on developing areas – both local and state can be obtained by talking with some local municipality officials. This way they can find out about developing areas and invest in them.

 Invest in areas with low property taxes.

A real estate investor should look for low-tax areas. This way he can save a lot on property taxes. Communities which are overcrowded usually impose high property taxes. Indicators are full schools, bad roads etc which means the town has to be refurbished.  An investor can consult a local tax assessor who will show him a list of low-tax areas and tell him how much tax the town imposes per $100 of house.  A real estate agent will also help.

Look for places with quality education

Often areas with quality education are those with good school rankings. Homes in these areas are usually targeted by parents. Real estate investors have to look out for such areas. They can check the  state’s board of education website, check PSK12.com or visit the school itself to find out the ranking and the standard of education.

Outskirts of a developed area are good for investing

If an area becomes overpriced, then real estate investors can invest in outer boundaries of the area. Areas which are in proximity to major rail and bus transportations are even more desirable.  Real estate investors can consult the local rail road or bus company and check if they are planning to develop service in that area.

Conclusion

Every real estate pro must know these 5 tricks laid down by DC Fawcett

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DC Fawcett-Profit Earning Methods in Real Estate

There are numerous ways to make money in real estate business. They are fixing and flips, long-term rentals, vacation rentals, REIT’s, short-term rentals, wholesaling and non-performing loans are the ways to invest in real estate. The returns in real estate depend on how much money you invest. All types of investment have different levels of risk. DC Fawcett suggests different ways earn the profit in real estate.

Methods to earn profit in Real Estate

  1. Cash Flow – it is the extra profit earned after meeting all the expenses on the property. Say if you rent a house for $2500 and if my expenses are $2000, you make a profit of $500. If you own 10 units like this, the cash flow will be $5000 and so on.
  2. Property value appreciation – If you purchase worth $3, 00,000 and sell it for $4, 00,000 after one year, you earn a profit of $1, 00,000. It means you have become richer by that amount. However, it is combined with the wealth generation team members.
  3. Low pay down – when you mortgage your property, you pay the mortgage amount every month as per the agreement you have made with your lender. The payment consists of principal and interest. The latter is the profit for the lender, but it is the principal amount you pay every month. When the property value goes up every year, your equity increases, which separates property worth and the mortgage amount you pay monthly.
  4. REIT Investment – Stands for Real Estate Investment Trusts. They are purchased in stocks and mutual funds. It is the easiest way to invest in real estate as the trust takes care about the investment amount and handles the market.
  5. Tax Benefits – The real estate investors get tax benefits from the US government. There are many benefits you can get in real estate investment. They are:
    • Whatever cash or appreciation you get into real estate is not considered as a business income.
    • The income tax that is due is considered as an offset is treated as depreciation.
    • When you sell rental properties, whatever profit you earn is taxable on long-term capital gains if there are any.
    • The government offers you 1031 exchange which can be used as tax exemption in order to trade up with bigger and better properties.
  6. Vacation Rentals – If you have purchased a house at the tourist location, you can hire a property manager to help you to rent the house. You can take advantage of vacation rentals during the peak seasons.
  7. Short term rentals – You can go for short term rental properties out of your need or necessity. Many people invest in this and sell it when the value appreciates so as to make profits.

Conclusion

There are several methods to earn profits in real estate. Whatever way you want to choose in this business depends on your requirements. Fix and flip give you huge profits, provided you keep high volume deals and quickly convert it to money