919 Realty
  • MAIN
  • ABOUT
    • 919 BLOG
    • TESTIMONIALS
    • SOCIAL MEDIA FEEDS
    • PREFERRED VENDORS
    • VIDEO ARCHIVES
  • BUY
  • SELL
    • HOMEVALUE
    • TOOLKIT
  • SEARCH
  • CONTACT
  • MAIN
  • ABOUT
    • 919 BLOG
    • TESTIMONIALS
    • SOCIAL MEDIA FEEDS
    • PREFERRED VENDORS
    • VIDEO ARCHIVES
  • BUY
  • SELL
    • HOMEVALUE
    • TOOLKIT
  • SEARCH
  • CONTACT
Picture
Whether you seek home buying tips, want insight on local happenings, or just ready to enjoy the random weird story, check out our blog.

SIMPLE WAYS TO INVEST IN REAL ESTATE.  PART 5 OF 5:  LEVERAGE.

2/13/2017

1 Comment

 
Picture
Buying real estate is about more than just finding a place to call home. Investing in real estate has become increasingly popular over the last 50 years and has become a common investment vehicle.

Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds. In this article, we'll go beyond buying a home and introduce you to real estate as an investment.

PART 5 of 5:  LEVERAGE

With the exception of REITs, investing in real estate gives an investor one tool that is not available to stock market investors: Leverage. If you want to buy a stock, you have to pay the full value of the stock at the time you place the buy order. Even if you are buying on margin, the amount you can borrow is still much less than with real estate.

Most "conventional" mortgages require 25% down, however, depending on where you live, there are many types of mortgages that require as little as 5%. This means that you can control the whole property and the equity it holds by only paying a fraction of the total value. Of course, your mortgage will eventually pay the total value of the house at the time you purchased it, but you control it the minute the papers are signed.

This is what emboldens real estate flippers and landlords alike. They can take out a second mortgage on their homes and put down payments on two or three other properties. Whether they rent these out so that tenants pay the mortgage or they wait for an opportunity to sell for a profit, they control these assets, despite having only paid for a small part of the total value.

​SOURCE:  http://www.investopedia.com/articles/pf/06/realestateinvest.asp
1 Comment
Agent Success link
8/5/2020 02:26:08 am

Excellent explanation, it’s simple & focus. Keep up the great work!

Reply



Leave a Reply.

    Archives

    August 2019
    July 2019
    April 2019
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    April 2016
    March 2016
    February 2016

    Categories

    All
    FIRST TIME HOME BUYERS
    GRANT PROGRAMS
    HISTORY
    HOMES
    HOMESIDE
    HOMETOWN HEROES
    HUMOR
    INSPIRATION
    INTERESTING FACTS
    INVESTING
    LENDERS
    LISTINGS
    PRICE REDUCTIONS
    REAL ESTATE
    SELLERS
    TIPS

    RSS Feed


919 Realty / Keller Williams Elite     /     245 NC Highway 54 East, Suite 101     /     Durham, North Carolina 27713     /     919.641.5819     /     919realty.com
Picture
© COPYRIGHT 2016. 919 REALTY.  ALL RIGHTS RESERVED.