If you’re longing to become CEO of your own business and life, passive income is the way to go and there are few better ways to upgrade you tax bracket than real estate investing.
First thing is not to listen to your frat brother/cousin/neighbor down the street that bought in the real estate boom and got burned. The housing bubble has burst and investors are setting up their financial futures in Central Florida every day by scooping up steals on real estate investment properties.
Here are some quick pointers on how to make your money work for you in the Central Florida real estate market:
1) CASH IS KING. Don’t have enough of your own? Pair up with a partner and join forces. If you’ve got your own financial resource, even better. Banks and private sellers alike prefer cash in most cases as you can close quickly and take the property off their hands.
2) DON’T JUDGE AN INVESTMENT PROPERTY BY ITS COVER. This is pretty much the opposite of the dating advice you’d give a friend. Don’t be turned off by cosmetic flaws and landscaping issues, and look for the diamonds in the rough. Flooring, paint, appliances and lawn care are all more affordable than you’d think and can turn an ugly house into beauty queen in no time.
3) THINK BIG PICTURE. Right now the rental market is a perfect storm for would-be investors. According to Lawrence Yun, chief economist of the National Association of Realtors, not only did we see a rental fee increase of 3 percent overall in the third quarter of 2011, the growth trend is set to continue. Think about it, with all the homes being foreclosed on, many buyers will need to rent for at least the next few years. Rents will likely continue to grow at the annualized rate of 3.5 percent and double in the next 20 years with home prices following suit. (Realtor magazine, Lawrence Yun).
The moral of the story is there is big money to be made in real estate investing and many are already making a killing right now. Don’t wait till the market prices go up again, remember, buy low, sell high. Get out there and become your own Donald Trump, comb-over not required!
Christina Rordam is a local Realtor. Contact her at 407-928-8294 or www.ChristinaSellsOrlando.com