Real estate in Memphis, Tennessee is booming. Now is a great time to get your piece of the pie. But how do you get started? There are a number of things that are crucial to know before you begin your journey in real estate investing. At Memphis CashFlow, we will walk you through the process from beginning to end.
What Is Real Estate Investing?
Those who have been investing in real estate for a period of time will tell you that it is a reliable way to generate long-term income. This is a true statement, however, you need to do it the right way. Memphis CashFlow has helped thousands of people grow their investment portfolio, while building their wealth through profits from their investment properties.
Simply put, real estate investing is buying a real estate property and generating revenue through it. Real estate investing has been around since before even the stock market. It is one of the oldest and purest forms of investing and building wealth. There are several different ways to invest in real estate.
Types of Real Estate Investing
Owning a Home
By purchasing your own home, you are technically investing in real estate. However, by buying a home to use personally, you aren’t actively getting any income from owning it. Buying and paying off your home loan is one of the best long term investments you could ever make, as it will help you with investing in other properties down the road.
One of the best ways to get a long term method of bringing in income is by purchasing a house and renting it out. Not only can you add thousands of dollars to your income, but having numerous rental properties can add up to a nice retirement. If you have ten properties that rent for an average of $1000/month, that’s roughly $10,000 in your pocket each month, once the houses are paid off.
With a rental house, you obviously have to have people to live in it. Something to consider is that unless you work with a property management company, you will have to handle all aspects of renting the house out. This includes finding renters, collecting rent, handling repairs and maintenance requests, etc.
This is something that Memphis CashFlow offers with our real estate services. We have partnered with Marathon Management to handle the management of our properties. This takes the weight off of your shoulders, and you can sit back, relax, and watch your wealth grow.
Thanks to the popularity of recent TV shows, flipping houses has never been more exciting. You find an undervalued house that is in need of repairs and/or updating, then you fix it up and sell it for a profit. While this sounds amazing, it can be hard work. Sometimes you don’t know what you are getting into, as repairs and upgrades can potentially be more than you thought, taking away from your profit.
If you are looking for a quick turnaround, and you have the resources to fix up the house, this may be the best option for you. However, if you are looking for a more long-term investment, one of the other options may be better.
A REIT is a real estate investment trust. Basically, a company owns real estate investments, and they sell shares to investors, who will get a percentage of the income made.
REITs are much less conventional than purchasing real estate yourself, whether it be through rentals or house flipping. It is a very hands off approach, which might be just right for you if you don’t want to have to make any of the decisions that can come with other forms of real estate investing.
How Do I Make Money by Investing in Real Estate?
Real estate investing can be very lucrative. Just like there are numerous ways to invest in real estate, there are a number of different revenue streams that can be realized through your investment.
Property appreciation is when your property increases in value. If you buy a property for low, then you wait until you can sell it for more due to a change in the real estate market, upgrades you have made on the property, things being built nearby that increase its value, etc. This is the riskiest of all of the ways real estate investors can make money.
Cash Flow Income (Rent)
This is when a tenant pays you to live in/use your property for an agreed upon period of time. This is one of the main reasons why real estate investors buy property. By owning a rental house, you are pretty hands off, especially if you have a property management company who handles the money collecting and repairs for you. For the most part, you should have a steady stream of money coming to you every month. The only things that you will have to pay for are your property management company’s fee, any repairs or maintenance that come up, and if the house is vacant between renters.
Other Forms of Revenue
If you own property in an office building or apartment, you can potentially earn money through Ancillary Real Estate Investment Income. These are essentially things that people have to pay for in addition to rent, such as laundry facilities or vending machines. If you are a real estate broker, you can also make extra money through commissions paid to you from buying and selling a property or by performing property management services.
How Memphis CashFlow Can Help
Memphis CashFlow offers turnkey properties for sale, meaning that we have already done all of the hard work for you. We know the Memphis real estate market very well, so we are able to find undervalued properties and buy and update them. Then, we put them on the market for investors to purchase, sometimes with renters already in them. We make real estate investing easy, whether this is your first investment or fiftieth.
Let us help you grow your real estate investment portfolio, in turn growing your wealth. Our experienced team is ready to help you increase your cash flow by acquiring properties. We will be there every step of the way, from that first meeting to the closing of your new investment property.