• by The VRET Team

Benefits of Meeting With a Real Estate Investment Company

If you’re considering investing in real estate during the COVID-19 pandemic, you’re making the right choice. Despite the recession caused by the virus, the housing market reached its highest numbers in nearly two decades. Around 65% of American households are now occupied, and homeowners have collectively accumulated an additional $1 trillion in additional home equity.

Meeting with a real estate investment company as soon as possible should be a top priority for prospective investors. There are a plethora of benefits to working with a professional and investing in property. Read on to learn what some of them are.

What Makes Real Estate a Good Investment?

The fact that real estate is a booming market is one reason that investing now is a good choice. However, you likely are wondering why it’s a better option than other large markets. The answer lies in the fact that real estate, unlike the stock market or auto industry, has constant and consistent demand.

An Evergreen Investment

This year-round annual demand makes real estate an evergreen investment. People will always be looking for homes, and since there are so many that are currently unoccupied, you will have many opportunities to rent your property out.

When you do this, you can accrue interest on the property as you collect rent checks. You can also perform maintenance, repairs, and upgrades to increase the value of your property.

At the end of the day, the housing market will have an even bigger boom and all tenant leases will expire. You can then sell the property for more than you bought it for. Your upgrades will have risen the property value and you can turn a profit when you sell it to buyers. You then can reinvest this profit into new properties and repeat the cycle.

Prices (and Profits) Are Booming

As of 2021, the real estate market is greatly expanding. As we discussed earlier, both prices and demand are skyrocketing. This means that there are more available profits to those who choose a wise investment.

Working with a real estate pro will help you to find the houses that will be the most profitable in the long term. If a home is currently at a high price but will go out of style in a few years, experts can inform you of these projected trends. They then can point you in the direction of profitable properties.

However, it’s best to do this while the market is still at a high. Mortgage rates are currently at an all-time low, so you will have a much easier time paying off your property without needing to raise your tenant’s rent. The price of housing is expected to rise yet again after the COVID pandemic dies down, so it’s critical that you put money down while it’s still at its most profitable.

You Can Get Tax Benefits

Did you know that there are many different tax benefits that you can receive when you own real estate? 

Well, it’s true. Some of the most impactful include:

• Deductions (tax write-offs for rental properties that include costs associated with operating expenses, property tax, interest on your mortgage, repairs, and depreciation)
• Passive rental income (via the Tax Cuts and Job Act of 2018, which allows investors to get tax deductions that reduce their income tax by approximately 20%)
• Capital gains (profits that property owners make when they sell real estate property)
  • Short-term capital gains (gains on investment estate held for 12 months or shorter)
  • Long-term capital gains (gains on investment estate held for over a year- generally better for investors due to its lower tax rate)
• Self-employment tax (saves you on the income tax you get from tenants who pay rent)

These are but some of the tax breaks you can get as an investor. There are many more.

You’ll Build Wealth and Equity

Investing in real estate obviously builds wealth because of its tax breaks. However, it also benefits investors because it’s a steady source of cash. Rental income is a reliable source of money assuming that tenants stick to their lease and pay on time.

Depending on where you live, you could earn not only double the income you need to survive. You can get a lot of extra spending money, especially when you rent in urban areas. Oklahoma City is ideal because it’s a larger urban location that contains multiple universities.

Over the course of time, you will accumulate enough wealth to have long-term financial security. You eventually will also collect high equity rates. If all of the assets of your property were liquidated and all debts paid off, you would get a lot of extra money as someone who owns the building.

Your Portfolio Will Be Diversified

The final benefit of owning property is portfolio diversification. There is, however, a catch: you cannot really diversify effectively without professional assistance.

If you’re running a real estate project on your own, you’re going to put all of your time, effort, and funds into just one or two properties. You’ll be too focused on smaller goals and miss your chance to diversify with many different real estate investment opportunities.

Working with a pro lets you gain more exposure to the full market and invest in multiple properties. Because these experts manage a good chunk of your investments, you will have the time to find new properties to invest in.

Investment companies also let you invest in multiple real estate locations via a single vendor. You can purchase shares in the housing market through a single company. This spreads your investment risk across multiple projects and diversifies your assets.

Why Is Professional Help Essential?

Portfolio diversification isn’t the only thing you can’t do without a professional. Almost all of the reasons to invest in real estate are unattainable goals without a professional.

You also will not be able to take advantage of nearly as many opportunities if you don’t contact an expert since you’ll need to handle mundane tasks like paperwork.

You also won’t be able to browse all investment opportunities and compare prices and potential profits as easily as you may wish. Professionals can assist you in finding these opportunities.

Investors Handle Mundane Tasks

There are a plethora of mundane hassles that come with property management. Operational responsibilities can take many hours a week- sometimes enough to make it a full-time job. This is especially stressful for investors who aren’t experts in financial management.

If you use an investment company, they’ll perform all of these mundane tasks for you. They’ll take care of all the paperwork associated with managing each estate. They’ll also fill them out in such a way that will get you the maximum profits possible and help you obtain tax cuts.

Property management is also easy when you work with a real estate agent. They’ll help you to fill out the forms required to request maintenance on your property. This will let you be passive as you collect returns on the investment so that you can invest your energy elsewhere.

Education and Networking Benefits

The vast majority of real estate investment professionals work within groups and networks. They don’t stand alone. They generally will meet with other professional real estate investment managers and connect with new contacts.

This doesn’t only benefit their own careers, but can help you immensely. When the pros that you work with share ideas and work together, they can come up with new ways to maximize their client’s ROI. As one such client, you will be the benefactor of the new tips and tricks that they learn.

You also will become more educated on issues related to real estate investment. Experts are always happy to answer questions about how they take care of the nitty-gritty so that you can remain in the know. This helps to ensure that you understand what’s making you money and why.

Property Acquisition Is Made Easy

When you partner with a real estate investment company, you don’t just get the benefits of someone to do clerical work for you. You get access to potential returns from both rental income and property appreciation. As an investor, this gives you the chance to increase your wealth consistently.

But why work with a pro to get these benefits?

As a solitary investor, you may not be able to determine market projections for the real estate industry on your own. This is especially true since the markets in various areas of the US are different from one another. You’d need to have both expert knowledge and professional tools to create accurate projections.

Since you’re unlikely to have these tools, you need to tap into someone who does. Check out a company with a good record of successful past real estate projects. They can give you reliable information about market projections and advise you about where to make lucrative investments.

Real Estate Syndication Can Happen

Real estate syndication is a term that refers to what is essentially a group investment. Multiple investors come together and fund a project. One person doesn’t have all the capital in the investment, but they don’t assume all risks for the investment, either.

This is ideal because all investors in the group can combine their skills. They can also pool their money and resources to get a property that they individually wouldn’t be able to afford. This may sound risky, but remember that no single investor is taking on the risk alone.

A real estate investment company takes on the role of the syndicator in these situations. They’re the sponsor. You and the other investors interested in the project communicate with the sponsor to make sure that the investment is staying profitable.

In time, you may want to take on the role of the syndicator in an investment situation. Go at your own pace, but make sure that you maintain a relationship with a professional even when you choose to take on a leading role. It could greatly help you to succeed.

Professionals Can Help You Find Deals

When you first begin to meet with a real estate agent, attorney, or investment manager, you aren’t immediately going to be given deals on property. However, if you maintain good professional relationships with these people, they’re likely to tell you when they eventually find a deal on property in the area that you’re looking for.

Additionally, investing in real estate can be an expensive challenge if you don’t already know what property should cost. You don’t want to accidentally find yourself cheated out of money.

Experts can ensure that you get the best deals on property and pay a fair price for them. You minimize the chances of encountering clerical issues when you work with a pro as well, so there will be no confusion about how much you need to pay.

Meet With a Real Estate Investment Company

While getting involved with an REIC is always a good choice, the current pandemic has made investing an even better decision than ever before. Now that you know why it’s essential that you meet with a real estate investment company, it’s time to get started.

Schedule an appointment with the best virtual real estate team in the nation. Our operations are based in Oklahoma City, but we offer financial wellness advice and investment tips to people all across the US. In addition to meeting with you virtually, we’re happy to answer any lingering questions that you have before encouraging you to invest wisely.

We’re committed to getting you top-notch deals on the best American real estate, so we look forward to hearing from you soon.