Yourgo-tocomprehensiveguidetolearn moreaboutthedifferenttypesofReal Estateinvestments. WhichTypeofReal EstateInvestmentis
CARRIEFREEMAN CARRIEFREEMAN@JOHNLSCOTTCOM 206-355-6230
RightforYou?
Tableofcontents
AboutUs
Weknowthatlearningaboutinvestingcanbe overwhelming therearesomanydifferent conceptsandtermstowrapyourhead around.
Whichiswhywe,theCarrieFreemanReal EstateGroup,arehere:wewanttohelpyou breakdowntheprocessintomanageable piecessoit'seasytolearnhowtoinvestin otherassets.
WEHELPYOUNGINVESTORS
Webelievethatknowledgeispower,whichis whywe'vecreatedaseriesofarticlesdesigned specificallyforyoungpeoplelookingto improvetheirfinancialliteracy
We'llstartatthebeginningandthentakeyou througheachstepoftheprocessuntilfinally showingyouhowtogetstartedinvestingon yourown.
REACHOUTTODAY
Inadditiontoourarticles,wearealso availableatanytimetotalkmoreindepth aboutyourinvestinggoals.
Beingintheindustryforover20years,wecan bringvaluableinsightsandknowledgetothis field Reachoutwithanyquestionsandwe wouldbehappytotalkmoreaboutthis!
108UnionAve,Snohomish,WA,98290
www.carriefreeman.johnlscott.com
carriefreeman@johnlscott.com
206-355-6230
WHICHTYPEOFREALESTATE INVESTMENTISRIGHTFORYOU?
1 Gettingstartedwith RealEstateInvesting WWW.CARRIEFREEMAN.JOHNLSCOTT.COM
TypesofRealEstate Investments
Ashort-termpropertycanbeprofitable undertherightmanagement Butdon’t thinkthatitwillgeneratepassiveincome withoutmucheffort Beforeyouinvest yourmoney,youhavetotakealookat severalcomponentsthatdetermine whetheryourpropertywillcreateaprofit ornot
Basicrulesofagoodmarketingplan includecrispimagesandpossiblyvideos, detailedpropertydescriptions,andgood communicationwithyourguests Youcan alsolistalloftheamenitiesintheareasuch asstoresandrestaurants,alongwith culturalandhistoriclandmarksthatcould beofinteresttoyourguests
Ashort-termpropertymarketcan becompetitiveifitisinapopular vacationspotsaturatedwith offers.
Youneedtospendtimeandeffortto makesureyourpropertycreates steadycashflow.Letushelpyoufind theperfectpropertytoinvestin
Long-termrentalpropertiesare,astheir namesuggests,propertiesthatyourent outforlongerthanafewmonths.Thiscan includehouses,apartmentsandeven mobilehomes.
Theterm“long-term”canvaryfromone realestateagenttoanother;someagents mayclassifyapropertyaslong-termifitis rentedoutforayearormorewhileothers mayconsideranythinglessthanthree yearsasshort-term.Thespecificsofwhat makesarentalpropertylong-termvary fromtowntotown.
bookstomaintaining andmarketing,running yourpropertyisareal
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Fromkeepingyour
jobthatrequiresthe rightapproachanda fairamountof experience. 01|SHORT-TERMRENTALS 02| LONG-TERMRENTALS
ProsandCons ofRealEstateInvestment
Advantages of Real Estate Investing
REAL ESTATE INCOME GRADUALLY INCREASES
Realestateinvestmentsoften appreciateovertime.Thisgradual increaseinpropertyvaluecanbea valuableassetforinvestorslookingto buildequityovertheyears.
REAL ESTATE GENERATES STEADY CASH INFLOWS
Rentalincomefromrealestate propertiescanprovideareliablesource ofmonthlycashflow Thiscanbe especiallyadvantageousforinvestors seekingconsistentreturnsandincome stability
REAL ESTATE PROVIDES A DEPRECIATION TAX SHIELD
Propertydepreciationcanoffertax benefitsbyreducingtaxableincome andincreasingpotentialdeductions. Thistaxshieldcanloweryouroverall taxliabilityandenhancethefinancial advantagesofrealestateinvestments.
TalktoaCPAformoreinformation
Disadvantages of Real Estate Investing
REAL ESTATE IS IMPACTED BY RENT CONTROL
Rentcontrollawsmaylimityourability toincreaserentalincome,affecting potentialprofitmargins Investors shouldbeawareoflocalrentcontrol regulationsandtheirpotentialimpact onrentalpropertyprofitability
REAL ESTATE REQUIRES MAINTENANCE
Propertyupkeepandmaintenancecosts canbearecurringexpenseforreal estateinvestors Theseexpensesare essentialtopreservepropertyvalueand tenantsatisfaction,makingregular maintenanceacriticalconsideration.
REAL ESTATE INCOME IS SUBJECT TO TAXATION
Rentalincomeandcapitalgainsfrom realestateinvestmentsaretypically subjecttovarioustaxes,including incomeandcapitalgainstaxes
Understandingthetaximplicationsof realestateinvestingiscrucialfor effectivefinancialplanningand investmentstrategy.
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THECOSTOFAVACATION RENTALISJUSTTHECOSTOF THEMORTGAGE
Avacationrentalcostsmoreup-frontbecause you 'repayingforbothanapartmentorhouse toliveinandasecondapartmentorhouseasa vacationrental However,thiscanbeoffsetby takingadvantageofopportunitiesshort-stay programs(whichcoversupto$1000peryear towardyourhostingfees) Oryoucan“house hack”yourprimaryhouse,askformoreinfo!
IT'SNOTASEASYASITLOOKSTO MAKEMONEYINTHESHORTTERMRENTALMARKET
Althoughshort-termrentalsmightseemlikean easywaytomakemoney,theyrequirean investmentstrategy,amongothersteps,toturn aprofit.Ashort-termpropertymarketcanbe competitiveifitisinapopularvacationspot saturatedwithoffers.
ACCOUNTINGFORLONGTERM REALESTATERENTALS
Whatisaccounting?Accountingistheprocess ofkeepingtrackofwhatmoneycomesinand whereitgoes Ifyoudon’tkeepgoodrecords,it couldbehardtofigureouthowmuchincome yougotfromyourrentalseachmonthoryear Whatiftherewerenorecordsofwhopaidhow much?Keepingdiligentrecordsiskey,whether youdoit yourselforhireapropertymanager.
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TheBestWayto ManageYourFinances
REALESTATEACCOUNTING
Areyourrealestategoalsgettingaffected becauseoftheaccountinginvolvedinthe process?
Havingbeenaroundthepropertiesand dealingwithahostofclientseachday,it couldundoubtedlybeexcruciatingtolook aftertheaccounts,too Well,theprimary reasonforthiscouldbethelackofsupport orknowledgeaboutaccountingand accountingcycles
Itisactuallynotthatdifficulttofigureout howtokeeptrackofyourcashflowor maintainyourbooks Infact,youcandoso withouthiringanaccountantoreven gettingyourselfabookkeeperbyfollowing somesimplesteps.
Thefirststepwouldbetounderstandwhat makesupanaccountingsystem Itisa processusedtorecordfinancial transactionsandpreparefinancial statementsforbusinessesandother organizations Tosimplifythingsfurther, let'sbreakitdownintotwocategories: financialtransactions(ordebit-credit transactions)andbalancesheetitems (assets,liabilitiesandequity)
Nowthatyouknowwhateverythingmeans, let'smoveaheadwithhowyoucansetup yourownaccountingsystemfromscratch Thefirstthingthatyouneedtodoiscreate accountsforallpartiesinvolvedinyour businessdealingssuchaslandlords, tenantsetcetera Thenassignnamesunder theseaccountssuchasrentcollectedper month
Weunderstandthatthiswholeprocesscan beoverwhelmingattimeswhenyouhave noideaaboutwhatexactlyneedstobe doneorhowitshouldbedone.Reachoutat anytimesothatwecanhelpyouwithyour individualneedsanduniquegoals.Let’s moveforwardwiththisexcitingnew chapter!
Alwaysstoreyourpropertytaxes, maintenancebills,insurance, permitsinaseparateaccount
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WRITTENBYCARRIEFREEMAN WWW.CARRIEFREEMAN.JOHNLSCOTT.COM Callustodayformore informationaboutReal EstateInvesting (206)355-6230