Select Page

When it comes down to it, real estate investing is all about your return on investment. If you choose the right property, manage it well, and learn how to increase its value without spending a fortune, you can quickly build your real estate portfolio. 

Many people don’t realize the potential their homes have to bring their financial profiles to the next level. Once you’ve paid off your home or other property, you can begin to act on its investment potential. Even if you don’t have your home completely paid off, use these tips to help you begin building your real estate empire. 

Acquire Passive Income Generators

Passive income generators (PIGs) are properties you pay off and ultimately lease out to earn an income. It can be anything from a mobile home, a big house in the suburbs, a condo, or a tiny home in your backyard. PIGs allow you to have monthly income with minimal effort and costs on your part. Once you have enough capital to buy more properties, your monthly income has the potential to continuously increase as you buy more properties and rent them out. As long as they have tenants, they can continually earn you income. 

Take Small Steps Before A Giant Leap When Investing In Real Estate

As with any skill, it’s important to learn the basics by starting small. Make sure you have a solid understanding of the foundational aspects of real estate investing, leasing, and being a landlord before you buy multiple large properties at once. Become an expert in managing one property and slowly expand to prevent burnout and big mistakes that could cost you thousands of dollars in the future. 

Save up enough to buy a small property and use the income to make improvements and pay off that property. Then, buy another investment property. Contend with the unexpected issues that arise on a small scale before you take on the challenges of the larger ones. 

Account For Closing Costs

It would be easy to count the total sale of your property as profit, but before you start looking for your next investment property, it’s important to account for closing costs. These can range from 1%-10% depending on the area and everything involved. Realtor commissions, court and attorney fees, and title transfers all play a role in the costs you’ll have to pay in seller’s fees. To reduce costs, try to sell the home or property without a realtor, if possible. That could save you several thousand dollars. 

Increase Your Property’s Value

You don’t have to completely remodel your home. In fact, it’s much more profitable to make necessary changes or minor aesthetic changes that will improve upon the existing appeal of the property. Apply a new coat of paint, build a DIY patio, add solar power, or upgrade some smaller appliances or finishings. These small changes can add major value to the home without a massive monetary commitment from you. 

Maximize Your Property’s Potential

Real estate is a long-term strategy used for earning extra income. It’s important to start small with the basics and gain expertise from there. By learning how to invest wisely, increase the value of your property without spending a fortune, and learning how to generate income from your properties, you can yield impressive results and major returns on your hard work and investments. 

Ready to get started on your first real estate rental investment? Schedule a consultation with Morris Invest today and let the experts lead the way!