Real Estate Investment: The Fun Way to Build Wealth in Eastern Massachusetts

Updated May 31, 2022.

Are you having fun yet? Real estate is a great way to build wealth for any age group and financial abilities, but if you're not enjoying the experience, you might be doing it wrong. 

It may seem like a lot of work (because it is), but that doesn't mean a real estate investor can't have a little fun along the way. If you're wondering how to create wealth investing in real estate (and enjoy it), this blog post is for you. Keep reading as our Eastern Massachusetts property management team looks at why real estate investing is a good choice, how to find amazing deals for your portfolio, and to have some fun along the way.

The Path to Financial Freedom

You've heard the rumors. Many millionaires and billionaires made a lot of money by investing in income-producing real estate. However, being an "investor" is not an exclusive club. With the right strategies, almost anyone can invest in real estate successfully! Here are a few things to keep in mind. 

Long-Term Financial Results

Keeping your focus on long-term results is critical for succession. In addition to monthly rental income, making money in real estate over the long term includes appreciation. When an investment property value goes up over time, that's called appreciation.

Real estate appreciates on average 3% to 5% each year simply by maintaining the home. However, making renovations or repairs can boost the rate of appreciation even more. Contact a professional property manager to determine which renovations will bring the most significant return on investment for your rental properties.

Tax Advantages

From deducting maintenance expenses and fees for professional services (including a property manager) and more, property owners can benefit from various tax deductions. Always check with an accountant or tax attorney before taking any deductions. Also, contact the best property management Eastern Massachusetts offers to find other ways to save on your tax bill.

Portfolio Diversification

You've probably heard that it's not wise to put all your eggs in one basket. Even if your stock investments are successful, investment diversification is a good idea. Diversification by purchasing real estate may help protect your assets from market volatility and inflation by opening new avenues to hedge against those risks.

Making Your Money Work for You

There are several different methods to generate money in the real estate market. In addition to owning rental properties, the alternatives range from buying an exchange-traded fund that invests in real estate investment trusts (or REIT) to more complicated and time-consuming investment techniques such as wholesaling. 

To determine what's appropriate for you, assess your risk tolerance, skill and knowledge levels, liquidity needs, and the amount of time you have available. Then, get help from real estate investment experts to find the best fit for your goals and make your money work for you!

Where is My Next Deal?

Finding a good investment deal is one of the biggest hurdles. However, there are many ways to find a profitable rental property that can provide years of passive income to savvy real estate investors.

Networking

No matter the business you're in, networking is important. In real estate, it's critical! Wherever you hang out, let people know you're a real estate investor. Connect with other local investors, mortgage lenders, real estate agents, and others in the industry. You never know who might have an uncle that wants to sell a house he's owned for years.

Look for Pre-Foreclosure Properties

Those that haven't paid their mortgage in the past 30, 60, or 90 days are putting their property at risk of foreclosure. You may be able to rescue them from foreclosure and save yourself a lot of money if you contact them ahead of time. However, be sure to work with a property manager to evaluate a property headed for foreclosure before risking a bad investment. 

Develop a Marketing Strategy

Develop a plan to cast a wide net to look for new properties. A marketing plan can be everything from a sign in your front yard to a blog post reaching nationwide readers. One of the services property management companies provide is putting a marketing plan in place for landlords.

Have a Little Fun Along the Way

Real estate is a business, so be sure to take it seriously. However, that doesn't mean you have to do all the work to enjoy your real estate investment income! Find ways to have fun while solving problems creatively and let a property manager handle the daily tasks that generate more income for you. Even the act of searching for a creative real estate investing deal can be fun. No two days are ever the same in real estate, so enjoy the ride.

Build Wealth (and Enjoy It) With Boston Property Management Experts

Build more wealth and have the time to enjoy it with the help of Boston property management experts! CHARLESGATE Property Management loves helping property owners find their next deal and maximize returns, so they meet long-term financial goals. Learn more about how our property management services can help when you reach out for a chat!