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6 REASONS for Investing in Florida Real Estate Investment Property NOW
I invite you to take the next few minutes to learn the truth about the real estate market, how it compares to other methods of building assets and why it is such a lucrative form of investing. Many potential investors will say, 'I need to get into the Florida Investment Property market', especially taking into account current stock market fluctuations and the HOT market for investment properties, but simply don't know the facts about Orlando property investing and how to use sale and leaseback method of property management. When is the last time your financial advisor or stockbroker tried to convince you that moving a portion of your assets into the Florida Investment Property market might be a good idea? Never Right? The 'why' is simple. They don't earn commissions when you buy Florida Investment Property. It is also likely that you have probably never had an 'apples to apples' comparison of stocks versus Florida Investment Property quite like the one you will see here. Reason 1: Let's assume that you have $10,000 to put into some type of investment. If you choose to buy $10,000 worth of stocks, you will own exactly $10,000 worth of stocks. Pretty straight-forward. However, suppose you choose to invest that $10,000 into Florida Investment Property using a 90% mortgage (which in many cases can go up to 95-100% mortgages in today's market), you will own $100,000 worth of Florida Investment Property. If both of your investments were to appreciate by 10%, your actual gain with your stocks would be $1000 where your actual gain with Florida Investment Property would be $10,000. That equates to an actual 10% return on investment vs. a 100% return on investment. That's what we call leverage. Leverage: Florida Real Estate vs. Stocks If you take the above statement to be true and compare the REAL numbers, the stock investment gained 10% of the initial $10,000 value (or $1000) and the Orlando Investment Property investment gained 6% of the initial $100,000 value (or $6000). That is still an actual return of 10% versus 60%. It is not hard to see which investment provides a greater immediate return on investment. Additionally. these numbers do not take into account any income from your property during the course of the year, or the substantial tax advantages to owning property, which we will discuss later. Reason 2: What if you purchased a $100,000 property that happened to be worth $110,000 the day you bought it? Does it happen? The answer is yes, all the time. If you have your eyes open and are willing to 'go through the numbers' to find good deals, they are all around you. You may be asking yourself, why would anybody sell a $110,000 property for $100,000? Value: Making money when you buy. You have added $10,000 to your asset column in the form of equity. You have created additional LEVERAGE for yourself as the value of your property increases (a 6-10% gain on $110,000 is better than a 6-10% gain on $100,000!) Remember, you make money in Orlando Investment Property when you buy, not when you sell. Reason 3: It is amazing what a cleanup, a little landscaping and a paint job can do to increase the value of a property. Only a few hundred dollars well spent can result in huge value gains in Orlando Investment Property. Your $110,000 property with a little effort could easily be worth $115,000, $120,000 or more virtually overnight! Do you have to do any of this work yourself? Absolutely not! If you like to do that sort of thing then have at it, but if not, simply hire it done and accept a little lower net gain. Reason 4: Continuing with the above example, let's say that you have completed your 'deal' with the $10,000 invested with a 90% mortgage to purchase the $100,000 property that appraised for $110,000 (because you 'found a good deal'), which you improved to say, $115,000 by spending another $1000 on cleanup etc. Assume that one year passes and the Orlando Investment Property market grew by 6%, your property would now be worth $122,000. So far, so good right? If you are like most people, you may want to spend some of your hard earned money. Let's do the numbers. You have a mortgage at current rates that started at $90,000 and after a year worth of payments (the majority of which are tax deductible) you still owe approximately $89,000. However, your property is now worth approximately $122,000. If you were to refinance at 90% once again, you would take out a new mortgage of approximately $110,000. This will leave you with approximately $21,000 in cash in your pocket. Now, the BIG question; do you have to pay tax on that money? Absolutely Not! You have not sold the property or realized a 'capital gain'. You have simply borrowed money from yourself. You are able to do what you wish with that money, free from any tax whatsoever. Obviously, a good strategy might be to purchase two more properties just like your first deal! Also, we have not taken into account the fact that ALL of your interest payments on this property are tax deductible. In addition, you are also able to depreciate the property itself and all of its contents for additional tax advantages if you choose to do so. Let's be fair and compare the Orlando Investment Property tax position with the stock scenario. Assume that the $10,000 initial stock investment grew by 10% in the first year, creating a gain of $1000 and you wish to access it. If you draw it out, you will pay from 20-28% (or higher) in capital gains tax in order to have access to this money. This reduces your net gain to $800 (actual 8%) or less, depending on your tax situation. Compare that to Orlando Investment Property and you are beginning to get the picture. Reason 5: This is all not to say that Orlando Investment Property markets don't go down from time to time, however the dips are much less dramatic than that which can take place in the stock market, proven out by the banks' willingness to loan money on property. Reason 6: Lisa Carson
MORE RESOURCES: Celebrity real estate agent Mauricio Umansky explains when housing prices will come down Fox Business CRE Broker Magazine: a New Beacon for Commercial Real Estate Professionals Announced by Massimo Group Markets Insider Seth Samowitz Takes Helm as COO of Bob Knakal's Innovative AI Infused BK Real Estate Advisors in NYC Markets Insider Prologis Warns of Slowing Industrial Real-Estate Market The Wall Street Journal Downtime: Pairing wine and real estate RichmondBizSense Blackstone Earnings Rise as Investment Giant Projects Commercial Real Estate Recovery - CoStar Group 21 Largest Real Estate Companies in the World Yahoo Finance Welcome to Real Estate Friday! theberkshireedge.com Big Tech Is Downsizing Workspace in Another Blow to Office Real Estate The Wall Street Journal 'It was surprising.' Metro Detroit man caught up in real estate scam; here's how to protect yourself WXYZ 7 Action News Detroit Banks' Commercial Real Estate Risks Are Uneven Federal Reserve Bank of Kansas City Office market collapse: Commercial foreclosures spike 117% in a year Business Insider Real Estate Briefs | April 19 | News, Sports, Jobs Cape Coral Breeze Inked: Recent LI real estate deals Long Island Business News EquityMultiple Bullish on Industrial Real Estate Sector, Brings Opportunity to Individual Investors AccessWire WHO?! This Southern Utah Town Is A Real Estate Hot Spot! Cat Country 107.3 and 94.9 Seattle DJC.com local business news and data - Real Estate - Newmark puts Coliseum building up for auction Seattle Daily Journal of Commerce TikTok’s Origin Story: Court Files Show Role of GOP Megadonor Jeff Yass The New York Times Real Estate Minute – 04-18-2024 KFDX - Texomashomepage.com Motley Fool: Investors could trust real estate The Spokesman Review Mike Wyatt honored with Lifetime Achievement Award for brokerage career, community support - Dallas Business Journal The Business Journals Real Estate: Q1 2024 - Coronado Real Estate Market Update Coronado Times Newspaper Real Estate Transactions: April 19, 2024 The Recorder Inside PROFILEconnect 'A Night at The Museum' Real Estate Impact Conference at the Coral Gables Museum PROFILE Miami Bronx real estate sales drop across the board, though spring market may be more active: report – Bronx Times Bronx Times Google's Strategic Job Cuts Reflect Ongoing Cost-Cutting Measures, Affecting Real Estate and Finance Departments Yahoo Finance Legacy Hills neighborhood in Celina wins award at DBJ Best Real Estate Deals - Dallas Business Journal The Business Journals 'A Man in Full,' starring Jeff Daniels as an Atlanta real estate mogul, dropping May 2 FOX 5 Atlanta Tom Thumb southern Dallas named one of Dallas' Best Real Estate Deals - Dallas The Business Journals Blackstone Real Estate Earnings up 15% in First Quarter The Real Deal Mixing real estate & renewable energy to help build greener world NoCamels - Israeli Innovation News Why you might not need a real-estate agent when buying a home Business Insider Will It Be a Pricier Housing Market in Spring 2024? Norada Real Estate Investments S.F. housing market: Still very few homes, selling even faster San Francisco Chronicle The Real Estate Top Performers share tips for buying or selling a house in today's market! WUSA9.com Real estate mogul concerned how Americans will deal with squatters: ‘Something really bad is going to happen’ Fox Business AI in real estate discussed during virtual forum Westfair Online China home prices slumped in March as property crisis drags on Business Insider A new real estate trend? Shopping malls converted into residential units in South Florida NBC 6 South Florida Fannie Mae, Freddie Mac clarify real estate commission rules National Mortgage News Documentary shows roots of segregation were planted in Chicago Tribune High Country Real Estate: First Quarter 2024 High Country Press Millennials Are Coming for Your Golf Communities The Wall Street Journal Boise Real Estate Market Steady Amidst California's All-Time Low KIDO Talk Radio ‘It doesn’t smell right.’ Michigan councilman linked to $69,000 marijuana real estate sale MLive.com Will Hilton Head real estate pricing rules change this summer? Here’s what’s in play Hilton Head Island Packet REAL ESTATE | The Lofts at Cedar Lake include access to a 245-acre wooded campus washingtoncountyinsider.com Real estate: Buyer’s agents’ role in today’s real estate market Main Street Media of Tennessee Tiny California home the size of a hotel room will sell for 'considerably' more than its $1.7M asking price New York Post Arizona Coyotes owner cares more about real estate than hockey The Arizona Republic Retirees: Is it time to downsize, even in this real estate market? Effingham Daily News |
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