Sean Tarpenning Gives Vital Tips on Real Estate Investment
Sean is unique because of his "Whatever It Takes" mentality. The motto he lives by as a father, coach, and business leader is "Help People be in a Better Position Today than they Were Yesterday." He puts his time to good use by taking care of his enterprises and volunteering in the communities where he lives.
Sean Tarpenning gives his reasons for thinking now is a good time to invest in real estate in today's column. Searching "real estate investment benefits" on Google will get around 180,000,000 results. As more people consider entering the real estate investment industry, who can blame them? Given current events, it stands to reason that many people are considering investing in real estate instead of the volatile stock market. In his article "The Finest Financial Decision Available,"Sean Tarpenning outlines several of the main reasons why many individuals today consider real estate to be the best financial choice available.
Gains in Revenue and Financial Success
When amassing a portfolio of rental properties, many investors pick a low loan-to-value (LTV) of 75% (25% down payment plus 75% financing). With the help of leverage or "other people's money," you can multiply your earnings and your cash flow, so expanding your net worth. Payments are made regularly, much like dividends from equities. Investing in a turnkey rental property means having a local property manager take care of all the day-to-day operations so all you have to do is meet once a month to discuss the property's performance and maybe deposit your rent checks.
Manage the Markets and the Money Supply
When you invest in the stock market, your money is managed by people you don't know. You have complete control over when and how your money is invested in real estate. A new article published on MarketWatch claims that when the economy is weak, there is a lower correlation between real estate and stocks. Real estate is commonly recommended as a hedge against stock market volatility due to the illiquidity and low correlation of real estate's growth and decline.
Expenses
Investing in real estate allows you to write off every single expense you incur while managing the property. A suitable rental property can be acquired through careful borrowing if the tenant's monthly cash flow is sufficient to cover these operational expenses, with any excess being viewed as net income.
Invest When It's Convenient for You
Real estate investing is a quantitative activity. The likelihood of finding a seller willing to accept an offer increases as the number of bids increases. The higher your belief in the property's potential profit, the more carefully you will examine any bids.
When you have a goal in mind and a strategy in place to bring you there, making decisions and selecting investments becomes easier. Avoid "analytical paralysis," but don't miss out on good opportunities because you jumped at the first one. It's better to wait for a favorable opening to show itself before trying to clinch the deal.
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