Building wealth through real estate
Real estate can be a great way to build wealth, but it takes a completely different mindset. While buying your primary home is largely an emotional decision (does it fit the needs of your family?), investing in real estate is purely logical and numbers-driven. Some prefer this aspect, and others don’t! There are many different real estate investing strategies out there, though arguably the most common method is buy and hold investing - purchasing a property, maybe doing some small renovations, and then renting it out to collect rental income.
With over a decade of experience investing in the Triangle, Tiffany has amassed a real estate portfolio including single family homes, multifamily, office, and retail. She also has experience with short term rentals.
If you’re interested in investing in real estate, feel free to book a call with Tiffany to discuss more.
Things to consider when investing in real estate:
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Borrowing money (leverage) is one of the main ways to juice your returns in real estate. However, it does come at a cost. Do you want to use traditional bank financing to purchase your property? Or will you fund it with cash, HELOC, or private money?
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Your return on investment is very important… otherwise, what is the point!? Does your property cash flow once you subtract all expenses from rent? Do you make a profit? How does that ROI compare to other investment vehicles you could be putting your money in?
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Owning rental properties can also be very beneficial on your taxes, as you can typically deduct property expenses from the rental income received. And if you’re a real estate professional, you could deduct those expenses against your earned income! Before taking the leap, consult with your CPA to make sure you’re aware of all the tax implications.
