BY JARVIS MARCUS

This article is somewhat akin to the October 2007 article. A lot of people get into Real Estate Investing (“REI”) to increase their wealth. The focus of this article is on residential REI both rehabbing property for resale and also rehabbing and using the property as a rental property.

One way to become financially independent is through REI. As immigrants a lot of us form non-profit organizations, so that we can help our families back in our respective country. Sometimes we ask for donations and/or get involved in other fundraising activities, but most time it is very difficult to raise enough money that way. I am recommending that if an individual wants to be wealthy or if you want to really have money to help your community, you should get into real estate investing.
 
The key to be a successful real estate investor is to perform due diligence on each and every property before you purchase the property. You have to buy the property right. You have to buy the property so as to make your profit going into the deal. You have to buy property in the right location, location, location. You have to look at yourself as a buyer and as a seller at the same time. You must know the market, and you should not pay too high a price for the property.
 As stated earlier, you can purchase a property, fix up the property and resell it, or you could fix up the property and keep it as a rental property. 

 Investing in real estate can provide you with a steady stream of income. The property could appreciate, so that when it is sold later on it gives you a huge profit. The interest you pay on any loan that is against the property can be used to off-set any income you may earn from you 9-5 job. The property taxes you pay could be an off-set to the income from your 9-5 job. In a lot of cases you get to depreciate the property (not the land) over a period of time.

  “Depreciation” means that you are allowed to take a “paper loss” against the income that you may make from the property. Be careful here because there could be a recapture if and when the property is sold. There are ways around this: 1) you could demolish the property and rebuild or 2) you could also exchange the property for a property of higher value.
 If there is enough equity in the property, you may be able to borrow that equity and use the equity for future real estate purchase. You say you used leverage to purchase more property.

Real estate investing can be relatively simple if you have various consultants like an accountant, a realtor, an attorney, a person who can fix up of the property, an inspector, a person with deep pockets to lend money, and/or a bank to loan you money. JARVIS & ASSOCIATES, LLC PROVIDES REAL ESTATE INVESTING CONSULTATION. 

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Each factual situation is different and this article is very general in nature. You should always seek the help of a competent lawyer to assist you with your legal issues. This article has not established an Attorney-Client Relationship between the reader and the author of this article. To establish an Attorney-Client Relationship, there has to be a written and signed contract by both the author and the reader. Marcus A. Jarvis, Esq. 763 425 5447. jarvislawfirm@msn.com. www.marcusjarvislaw.com