Investment homes requires the use of a Realtor that understands
your needs and desires from an Investors standpoint. There are
two main types of investors as detailed below:
Buy and Flip:
This is the process of purchasing a home at a below market price
and doing required repairs and or improvements and then offering
the home for sale for a profit. This process has become
famous on TV shows such as "Flip this house" and others.
Often times on the TV shows the producers do not show the entire
transaction. Instead they tend to glamorize this process
and simplifying the process by eliminating such things as
purchasing cost, holding cost and selling cost.
also a favorite
of "Real Estate Investment Gurus" who often hold free seminars
to entice potential investors to come for a free seminar that
will show them how to make millions of dollars with "No Money
Down", "No Credit", "No Risk" get rich quick schemes.
Of course to really
learn how to do this they will require that you attend a "Boot
Camp" where they will teach you everything that you need to know
for somewhere between a $2,000 to $10,000 investment. Of
course this is explained as being equal to a 4 year college
level program in Real Estate Investment for the cost of only one
years cost and you can learn everything in a weekend or two. If
you can not attend the boot camp you can always buy their CD-DVD
programs for only $3,000 or so.
investors do not want to have any hassles with things such as
tenants, repairs, vacancies, etc. Therefore they try to bypass
these items and simply try "Buy and Flip".
and Hold for Rental Purposes:
is the way that most fortunes are made in Real Estate. This is
not as glamorous as "Buy and Flip" and it does have those
inherent negatives such as dealing with tenants, etc. but when
you study the philosophy behind owning rental properties this is
the prime way to "Get Rich in Real Estate" but instead of
quickly you do it slowly and methodically.
offer the investor
a vehicle to have someone other than themselves to pay for your
real estate investment. With a positive cash flow rental real
estate not only pays for itself but also generate a return on
your investment. Houston at this time offers some of the best
Real Estate Investment potentials anywhere in the United States.
Tax benefits of Real Estate
given here is to be construed as Tax Advice. You should
refer to the IRS at www.IRS.gov
or contact your tax advisor or CPA or Tax Attorney for
professional advice as to your particular situation.
Please visit our separate page on
Real Estate Tax benefits for Investors.
As always, this article is
intended to be accurate but is not intended to replace tax
advice from a competent professional.