Wilson Wolfe Real Estate


Posted by Wilson Wolfe Real Estate on 8/9/2020

Image by 3D Animation Production Company from Pixabay

You may hear someone say that you should get into real estate, but truthfully, it isn’t for everyone. While real estate investing can be a lucrative opportunity, if you don’t know what you’re facing, things can quickly get out of hand.

Why Real Estate Investing?

Ultimately, the goal is to invest in something that will give you a return, or profit. In order to be successful, you must understand the logistics and the risk. It’s sort of like Monopoly – you buy properties, improve the land to collect rent, avoid bankruptcy and buy more properties. Just because the concept is simple doesn’t mean that’s how things will flow. The consequences of making bad decisions can be brutal, so being properly prepared is key.

Here are a few tips to get started:

  • Consider real estate investment trusts (REITs)
  • This helps get your feet wet without the physical property. Consider these like mutual funds, but they are companies that own commercial real estate. A common investment in retirement, these usually pay high dividends. If you’re new at this, it’s best sticking to publicly traded REITs, which you purchase through a brokerage firm.

  • Rental property
  • Consider buying properties and leasing them. You may also want to consider occupying your property and renting out rooms or units in a multi-unit building. By house hacking, you can purchase a property with up to four units and still qualify for a residential loan.

  • Online platform
  • An online real estate investing platform connects real estate developers to investors who want to finance projects through debt or equity. These usually have monthly or quarterly distributions, but you pay a fee and have a large amount of risk. You may also have to be an accredited investor, but there are alternatives, like RealtyMogul and Fundrise.

  • Flipping properties
  • You’ve heard and seen it on TV. Purchase a property that needs repairs, fix it up and resell it for a profit. Although HGTV and DIY Network may make it look easy, it’s a lot harder than it looks. You don’t know how much the repairs will be, and you’re initially on the hook for paying a mortgage. If you live in the home while fixing it up, that could save some money.

  • Renting rooms
  • Consider this the alternate version of Airbnb. You rent certain parts of your home (a room) and reap the benefits. This way, you don’t have to commit to someone long term and you can control how things work.

    It’s important to go into this with a clear head and complete understanding of your finances and the risk it may take. Having a conversation with a real estate broker and other professionals in the industry can help point you in the right direction. The location of your investments will also play a role in how much money you will have to spend. Take your time and find out everything you need to know to make an informed decision. Good luck!





    Posted by Wilson Wolfe Real Estate on 7/26/2020

    Image by ???????? ?????????? from Pixabay

    Build-to-rent is a major term right now for investors. The industry has seen a serious leap in interest in just the past year, making nearly everyone in the real estate space sit up and take notice. We'll look at the special nature of these properties and which attributes make a property more valuable than another. 

    The Hot Spots 

    Build-to-rent generally refers to a single-family property built to be used by renters rather than owners. It's popular because it's difficult to profit off of a new build, especially when you take into account the price of the land, materials, and permit costs. The areas that are exploding with these properties tend to be affordable cities with plenty of available infrastructure.

    Atlanta, Houston, Charlotte: these hot spots are attracting young renters who may not have a sizable down payment saved for a new house, but they're still willing to pay for the right amenities. It's making it relatively easy for investors to recoup their money (and then some). 

    The History of Build-to-Rent 

    This trend got its start after the recession churned out countless foreclosures and short sales, but has since morphed into its own asset class. Once home prices started to creep back up, investors saw that there was plenty of money to be made in renting even after the economy returned. Today, the build-to-rent industry is largely driven by new homes. Developers may build several dozen homes in a single area, making it easier for property managers to respond to renter requests and perform regular maintenance.  

    What's Behind the Success

    The most successful build-to-rent properties are those in highly popular areas that would otherwise be too expensive to the everyday renter. Less than half of all millennials have any kind of substantial savings to put toward homeownership, and even the Baby Boomers are starting to turn toward renting (whether they need to or not). In addition, home appreciation has slowed over the past few years and new tax rules don't exactly make it an open-and-shut case that owning is the best choice available. 

    Investors who have the opportunity to get involved in build-to-rent will likely be happy they did. The key is to look for properties that are sensible in nature. Avoid those in areas that make it difficult to build (either through expensive permits or restrictive building codes). Opt for properties in nice areas made with affordable, durable materials. This will cut back on maintenance and increase your profits in the long run. 







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