If you’re like many people, you’ve toyed with the idea of investing in real estate – but where do you even begin?
Real Estate Investing: The Basics
For some people, real estate investing makes sense. You can buy a property and make money from it.
But it’s not quite that easy.
How Real Estate Investors Make Money
Typically, real estate investors make money through:
- Appreciation in value
- Cash-flow income
Appreciation in Value
When you buy a property, whether it’s a piece of timberland for sale in North Florida or a cattle ranch near Lake City, you expect its value to increase. Real estate doesn’t always appreciate, but the odds are good enough that many investors are willing to take that chance.
Cash-Flow Income
If you have tenants on a property, whether you bought a land-home combo or a $100,000 to $200,000 home for sale in Lake City, you’ll charge them rent. As long as what they pay you exceeds your operating costs (including your mortgage and property manager’s fees), you’ll be making money. However, you’ll be responsible for making repairs to the property and for maintaining it, which also cost money.
Do You Need to Talk to a Realtor® About Investing in Real Estate?
Successful real estate investors know that they need to work with a skilled Realtor to find the right properties and the most advantageous arrangements.
If you’re thinking about investing in real estate, talk to a Lake City Realtor right away by calling 386-243-0124 or by sending us a message. We’d love to help you dive into the often-profitable world of real estate investing!
