Why invest in real estate and why an agent is important to your process

Good day everyone! I hope everyone is having a fantastic day! Thank you for sharing a bit of your time with me.

Disclaimer: None of what is described within this post is meant as investment, tax, or mortgage advice. Please consult a licensed professional specialized in each topic.

Let's dive into why real estate can be a great investment both as a primary residence or as an investment property.

As a primary residence stand point

• One of the most important values for a primary residence is functionally fitting your needs and the needs of your family. This is where you recharge, where you take a break from the outside world. It is where you express yourself, where you can recover, where you can grow, and where you can be your authentic self.

• Depending on the type of mortgage product used, each payment has the ability to add to the equity stake that you hold in a property. Equity is the value you hold in the property. It can be unlocked in multiple ways. It can be taken in lump sum at the time of sale. You can use a smaller sum to finance a purchase or cover bills when an unexpected expense comes your way. It can be a nest egg that continues to appreciate with time.

  *Inflation Shield & Predictable Costs: A fixed-rate mortgage locks in your base housing cost for up to 30 years. As inflation pushes up rents and prices across the economy, your debt service stays constant while your asset value and income tend to rise.

• In certain circumstances interest, property taxes and other items may be used as deductions during tax season. Items such as utilities, internet, insurance, and maintenance may be deductible if you are self-employed or have a home office.

As an investment property

• Direct cashflow, or ongoing monthly income comes in each month. After paying the mortgage, property taxes, insurance, and maintenance reserves, any remaining rental revenue goes directly to you as net cash flow.

• If executed properly it can create a form of inflation protection. As general inflation rises, landlords can adjust rents annually to match market rates, preserving and growing purchasing power over time.

• Equity is built with each monthly payment. In an investment property however the equity is built up by tenant payments, netting the investor the equity with each payment.

• An investment property, like a primary residency can also be used to offset income when tax time comes around.

  - Depreciation: The IRS allows you to deduct the cost of the building (excluding land value) over 27.5 years. This non-cash expense lowers your taxable rental income on paper, even if the physical property is increasing in value.

  - Operating Expense Write-Offs: You can fully deduct property management fees, repairs, maintenance, insurance, advertising, legal fees, and travel expenses incurred while managing the property.

  - Pass-Through Deductions: Under US tax rules, qualifying rental income may qualify for qualified business income deductions, depending on your tax structure and income level.

Why getting an agent involved early in the process will save you time and give you valuable guidance to unlock the full potential out of your real estate purchase.

I would gather that at this point the majority of people in the early stages of their home purchase experience search tirelessly through Zillow or Redfin, etc. While this is a fun and thrilling excersize for first time home buyers, it can leave a whole section of the market untouched. Real estate agents have access to off market oportuinities and coming soon inventory. Often times by the time a property is listed on the open market hundreds of potential buyers have already had their look at a given property. Opportunity cost is something often overlooked by a large pool of buyers. The simple solution is to build a relationship with a trusted power team. If you build a power team of trusted industry professionals spanning from tax professionals to mortgage reps and yes real estate agents you put yourself in a position to unlock the full potential of the home purchase process.

Another important value in having a trusted real estate partner is that they have your back. Not all agents are the same. You need someone that you can trust to have your financial wellbeing center of mind through the entire process. I can deliver that promise. I will always have your back. I will ask the tuff questions and be available at all times to ensure as smooth a process as can be delivered. There are certain things that are out of each parties hands in regards to a transaction. A trusted partner can help navigate bumpy closes or advise on next steps if one party is not cooperating during the transaction.

Let me help you start your journey towards homeownership when you are ready to dive in!

Make it a wonderful day everyone and thank you for your time!