Every real estate investor wants to minimize their overheads whilst maximizing the price of their property. While this might seem like an uphill challenge, it can be easier than you think.
Check out our top tips on how to reduce real estate overheads and boost your property’s value:
An Investment-Grade, Long-Term Net Lease.
An investor should seriously consider investment-grade, net-leased real estate. It provides you with ownership of a commercial property, which is leased to a corporation, who will provide a long-term, stable cashflow to a landlord.
Not only that, but a tenant will also be financially responsible for the property’s operations, repairs, maintenances, taxes and improvements. Once the lease expires, you will own the property again and can lease it to another tenant.
A Holding Real Estate Investment.
Don’t make the rookie mistake of investing in real estate in your own name. The best way to protect your assets is with a holding real estate investment, such as a limited liability company or limited partnership. Whatever real estate investment option you choose, this will ensure you will are not personally liable should someone fall or slip, or if the investment fails.
Upgrade the Property.
When the time comes to sell a property, you could earn more by liquidating the building. Aim to add more value by upgrading both its functionality and appearance. For instance, you could install energy efficient appliances, remodel the bathroom, add insulation and update the windows. Little home improvements will make a big difference to a property’s market value.
Consider an Equity Loan.
A property’s equity commonly increases as an owner pays down a mortgage. While equity is often determined when you sell a property, many investors often take an equity loan for favorable loan terms and interest rates.
Find a Real Estate Deal.
The most effective way to maximize a real estate investment is by finding a value-priced property. It takes an experienced real estate professional to identify a great deal, as they will spend their time searching real estate listings, visiting properties and learning about the market. Do your homework – for example, should you invest in a property with grant deed? – know what and take advantage of a real estate opportunity when it arises.
Pay a Large Deposit.
A large down payment will allow you to enjoy a smaller mortgage fee each month, which is ideal if a tenant leaves and the property is left empty until you find a replacement. What’s more, you can also make overpayments on the property to be mortgage-free at a faster rate, but can enjoy a monthly fee that complements your finances.
There are many ways to save a considerable amount of money when investing in commercial, residential or industrial real estate. Never rush into buying a property and consider every option before you decide. A little research can help you enjoy a fantastic return on investment whilst limiting your overheads.
Do you have any real estate tips to share? Feel free to write your advice in the comment section below. We’d love to hear from you.