Making money in College Station real estate can be viewed in both the short term and long term. Consideration also includes the various types of property including land, apartment buildings, homes, commercial buildings, student housing… But with any type of real estate, how do you look at it and maximize your profits? You have many many ways!
1. Reduce your loan balance – Pay down the loan increasing your equity. Equity builds with every payment you make. Refinancing to a lower interest rate while continuing to make the same mortgage payment will apply more to your loan balance which will increase your equity substantially. A one percent reduction in your interest rate can save you hundreds of dollars!
2. Income producing property bringing in cash flow– Let the tenants pay the cost of the property each month paying down the property loan which will increase your equity. TAMU Student Housing is perfect for this! A little positive cash flow at the end of the month is great to help with unexpected expenses and times when the property is vacant.
3. Appreciation – Demand and a fast growing area often increase the value of a property building equity.
4. Depreciation – Depreciation has long been the investors friend. Depreciation allows for a reduction in taxes paid for years and year BUT we do not know what our Congress is going to do with taxes at this time so plan for other ways to help increase your net worth.
5. Buy Low – Have you ever heard the best stock advice “Buy low and sell high”? The same applies for real estate, when you “buy low” you have instant equity in your property. Look into foreclosures and short sales as potential “buy low” opportunities.
6. Sell high – Buying low enables you to sell high which is often times ‘Flipping’. This puts money in your pocket today. Do a few repairs and improvements which increase the value.
7. Offer Owner Finance– When you offer owner finance you often are able to get more for your property plus you may get a higher interest rate than you can get on your assets at the bank.
8. Break it up– Consider subdividing. Sometimes a property is worth more in small pieces than as a large one.
Now, are you ready to invest your money in a Bryan College Station buyer’s market and find ways to make a profit in real estate? Which method works best for you? Need to get a list of foreclosure properties in Brazos County? Let me know how I can help.