Did you know that, today, it is wiser to invest in real estate than it is to get into stocks? Not only can real estate investing land you the home of your dreams, as reputable owner Stephen Dowicz will attest, but it might help you get into a new office for job-related reasons. If you are largely unfamiliar with real estate investor, you have nothing to fear. Here are 4 things that you should know in order to get the most out of this endeavor.
One of the most important things to know about real estate investing is that everyone must have a plan. What are your goals as they relate to this endeavor? Whatever they may be, you should map out the time you are willing to commit and the money you would like to spend. The best way to accomplish this is by setting up a day-by-day calendar. By following said calendar, you will be able to reach the aforementioned goals when you would like.
Second, make sure that the location of a particular piece of property is researched. One of the biggest rules of real estate investing is to always consider the location. After all, no matter how nice a house looks, it will not have nearly as much value as it should if it is not in the right spot. Location is a great way to build equity. What this will do is provide the most value if, for one reason or another, a homeowner would like to sell.
Third, tax benefits should be looked into. One of the best examples, according to Stephen M. Dowicz, is the depreciation write-off. What this does is allow an investor to write off the depreciation as a tax reduction when making a purchase. Also, the IRS regards real estate investments as business, which means that more deductions have to be done. This is a situation where hiring a tax advisor might be in your best interest.
Lastly, anyone that is looking to become a real estate investor should be mindful of his or her credit score. When someone has solid credit, they are more likely to be given a loan in confidence. The same cannot be said for someone that does not have the best credit, whether it was their own fault or not. Banks will not lend money to everyone, after all. The best way to improve your chances of acquiring a loan is by making note of discrepancies and fixing them as soon as possible.
One of the most important things to know about real estate investing is that everyone must have a plan. What are your goals as they relate to this endeavor? Whatever they may be, you should map out the time you are willing to commit and the money you would like to spend. The best way to accomplish this is by setting up a day-by-day calendar. By following said calendar, you will be able to reach the aforementioned goals when you would like.
Second, make sure that the location of a particular piece of property is researched. One of the biggest rules of real estate investing is to always consider the location. After all, no matter how nice a house looks, it will not have nearly as much value as it should if it is not in the right spot. Location is a great way to build equity. What this will do is provide the most value if, for one reason or another, a homeowner would like to sell.
Third, tax benefits should be looked into. One of the best examples, according to Stephen M. Dowicz, is the depreciation write-off. What this does is allow an investor to write off the depreciation as a tax reduction when making a purchase. Also, the IRS regards real estate investments as business, which means that more deductions have to be done. This is a situation where hiring a tax advisor might be in your best interest.
Lastly, anyone that is looking to become a real estate investor should be mindful of his or her credit score. When someone has solid credit, they are more likely to be given a loan in confidence. The same cannot be said for someone that does not have the best credit, whether it was their own fault or not. Banks will not lend money to everyone, after all. The best way to improve your chances of acquiring a loan is by making note of discrepancies and fixing them as soon as possible.
About the Author:
Real Estate Mogul Stephen Dowicz is a philanthropist and successful businessman in the spa trade. He has made many charitable contributions over the course of his career and is a specialist in private equity matters.