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The Top Five FAQs About Investing in Property

There isn’t any better investment choice today than investing in property. A real estate investment property is a powerful tool for long-term retirement planning and growing your portfolio over time.

Unlike stocks and bonds, a real estate investment is a tangible asset that allows you to see exactly where the money is going as well as to collect returns consistently in the form of monthly rent payments from tenants.

This FREE e-book shows you how to motivate yourself to invest in real estate and it outlines some common questions new investors have.

Here are the top five FAQs about investing in property you need to know

1.) I have heard that it is better to have an LLC to invest in real estate, is this true? Although it is not required, many investors do choose to register their real estate investments under an LLC as a way to mitigate personal risk and financial vulnerability. An LLC has become the most desirable option when it comes to asset protection for investment property. It is best to discuss these options with both an attorney and an accountant before making any investment decisions.

2.) What is a warranty deed and should I buy my investment with such a deed? A warranty deed is often used when a property is sold. As a document that guarantees a clear title to the buyer, it is essentially used to transfer property from one person to another. This deed will also convey any warranties or assurances that may be associated with the specified property. Investors should always get a warranty deed to ensure that the title to the house is clear.

3.) How long does the closing process take in an investment transaction versus a typical real estate transaction? The closing process describes the period of time that it takes for the property title to transfer from the seller to the buyer’s name. For a real estate transaction, this process typically takes about 30-45 days and is generally the same for real estate investment.

4.) When do I get my check? In selling turnkey properties, our homes have been renovated, marketed and tenanted. As long as tenants are in place, investors can expect to receive their rent check within the first month of a property closing. Rent is collected from our tenants on the 1st of each month and we pay the bills from the 1st until the 15th. Rent checks are then sent out to all investors on the 15th. Securing the rent each month in its entirety and on time is our priority.

5.) Why do most people invest in stocks if it is so easy to invest in real estate? Many people think of an investment in real estate as a part-time or even full-time job on their part. This isn’t necessarily true. The beauty of real estate investment lies in the ability to choose your level of personal involvement. For many investors, this is a passive form of income. With the help of a property management company, investors can be as hands off as they want to be with their real estate investment.

Remember, real estate investing is not rocket science — download your FREE e-book to learn more!

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