Your Dedicated Expert To Help You Find Your Next Investment Property!
Sams Realty Group Offers A Wide Variety Of Real Estate Support Services To Include the Following:
Real Estate Investing
Are you looking to begin investing in real estate, or to add to your existing rental portfolio? Are you seeking a property that you can flip? Let us serve as your dedicated agent to assist you in the area of real estate investing!
WHY INVEST IN REAL ESTATE?
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Both residential and commercial real estate can generate a steady and long-term stream of rental income.
While not guaranteed, there is historical evidence supporting that the value of residential and commercial real estate increases over time in most instances.
Real estate is a distinct asset class that can balance the risk of other investments like cryptocurrencies, stocks and bonds, making a portfolio more resilient.
As a tangible asset, both residential and commercial real estate can hold its value and act as a hedge against rising consumer prices.
Investors can benefit from tax deductions for mortgage interest, property taxes, repairs, depreciation, and other operating expenses associated with owning and operating the property.
As time elapses while paying down the mortgage, you build equity in the property, which can either be leveraged for other investments or loans, or to put you in position to own the property free and clear while generating additional cash flow.
Unlike stocks, bonds, or cryptocurrency, real estate gives you a tangible asset that you can control by deciding what to buy, when to buy it, and how to manage it.
Real estate allows you to use other people's money (through a mortgage and other loans) to finance the purchase of an asset, which can magnify returns.
WAYS TO ACTIVELY INVEST IN REAL ESTATE
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As a real estate investor, you can purchase residential or commercial properties to rent out to tenants, generating cash flow income from rent and gaining potential property appreciation.
As a real estate investor, you can purchase distressed homes in need of repair, renovate them to increase their value, and then sell them for a potential profit.
As a real estate investor, you can buy a multi-unit property (up to 4 units), and live in one unit while renting out the others to cover your mortgage and other operating expenses.
WAYS TO PASSIVELY INVEST IN REAL ESTATE
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You have the option to buy shares in companies that own and manage income-producing real estate. You can buy publicly traded REITs on stock exchanges, similar to stocks, and receive dividends.
As a real estate investor, you can use online platforms to pool money with other investors to fund large-scale projects, or join a group to invest in a property, with the group handling the management and you receiving a share of the income.
You have the ability to lend money to other investors seeking capital for investment projects, or to offering financing to homeowners seeking to purchase a home.
WHERE TO OBTAIN CAPITAL FOR REAL ESTATE INVESTING
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You can apply to secure conventional loans with competitive interest rates and terms from traditional banks and credit unions.
- Purpose: Finances the purchase and renovation of a home with one mortgage.
- Down payment: Requires a 3.5% down payment with a 580 credit score or a 10% down payment with a 500 credit score. Some lenders may have higher requirements, so it is best to shop around.
- Credit score: A minimum score of 500 is required with a 10% down payment, or 580 with a 3.5% down payment.
- Renovation types: Can be used for a wide range of repairs, from cosmetic fixes to some major structural changes.
- Process: More complex than a standard mortgage, requiring more paperwork, inspections, and oversight, including contractor bids and project plans.
- Costs: May involve higher upfront fees, interest rates, and closing costs due to the more complicated process.
- Income qualification: The loan is based on the rental income potential of the property, making it ideal for real estate investors who may have fluctuating or non-traditional income.
- No personal income verification: Borrowers often do not need to submit tax returns or pay stubs.
- Focus on cash flow: The primary requirement is that the property must generate positive cash flow to cover the debt.
- Streamlined process: The qualification and approval process can be faster than traditional loans because it focuses on the property's financial data instead of the borrower's personal income.
- Property restrictions: DSCR loans are for investment properties, not for primary residences.
You can apply to borrow against the equity you've built in your current home.
You have the ability to borrow from your whole life insurance policy if applicable.
You have the ability to borrow from your 401(k) if applicable.
You have the ability to utilize your self directed retirement accounts to invest in real estate if applicable.
You have the ability to obtain access to capital faster through private money and hard money non-traditional lenders, which are often more flexible but may have higher interest rates.
You can ask the owner of the residential or commercial property to finance the sale of their property to you. Key points for negotiation consist of the following:
- Sale Price
- Down Payment Amount
- Length of Loan (5 yr - 10 yr - 15 yr - 20 yr - 30 yr - 50 yr)
- Interest Rate
- Type of Loan (adjustable rate mortgage or fixed)
- Closing Costs
- Will There Be a Balloon Payment?
- Will There Be A Pre-Payment Penalty?
LET'S DEVELOP A RELATIONSHIP!
I would be very interested in speaking or meeting with you to discuss how I can assist you in the areas of real estate, insurance, business consulting, or government contracting support. Feel free to either send me an email at aaron@samsonestop.com, or call me at (210) 788-1034, and I would be more than glad to schedule a face to face meeting or phone conversation accordingly. I hope this helps, and I look forward to speaking with you soon!
Important Forms and Notices
Link To Information About Brokerage Services (IABS): IABS Form - Aaron Sams
Link To Consumer Protection Notice (CPN): CN 1-5_0