Turnkey Real Estate Investments

Single family Home and Multifamily Turnkey Real Estate Investments Opportunity
Everyone wants more passive income, and turnkey real estate investments offer a tremendous opportunity to grow your passive income. We...
View More

Buy Sell Investment Property

Residential homes and commerical properties Opportunity in Dallas
We have years of expertise and local knowledge to bring to the table for buying and selling investment properties. We’ll...
View More

Investment property advice in Dallas

Educate the investor for Investment properties in Dallas
It’s important to always be learning about investment opportunities so that you can make the best investment decisions possible. We...
View More

Questions? Need Help?
Give us a call at
214-810-4DFW or Email us: info@investmentclub360.com
Learn & Grow Your Real Estate Investment Business

Property Investing Can Be Your Second Job

Some people are able to make a rapid transition to investing full time in commercial real estate; others take a safer path to investing, keeping their day jobs and supplementing these earnings by investing in real estate properties on the side.

The slow transitional path allows you to learn and grow your real estate investment business while maintaining the peace of mind resulting from a regular paycheck.

By taking the slow way, you can add smaller income-producing properties over time and gradually grow your real estate portfolio. Only when you feel you’re in the right place will you comfortably make the transition to full-time real estate investing.

As someone new to the world of real estate, you need to understand the pros and cons of investing in rental properties for a second income. There are also pros and cons of residential vs commercial real estate investing that you should have explained.

Balancing the commitments between your primary career, investments, and family can be challenging. Ultimately you will need to determine the level of time, energy, and passion you are willing to commit to your investments.

Here are some of the pros and cons of deriving a second source of income by investing in real estate:

Pros

Regular monthly income: Depending on the type of property you invest in, you can ensure a regular monthly income from property rentals while maintaining a consistent and secure income from more traditional employment. One method to stabilize your income is to invest in many smaller properties with multiple tenants.

Tax benefits: By deducting allowable expenses from your income, you can reduce the amount of tax you pay. The mortgage interest, property taxes, maintenance, insurance, and in some cases utilities that support your investment properties are all deductible expenses.

Increase your net worth: As you grow your real estate portfolio, you also grow your residual income streams, increase your equity in the properties you own, and have the ability to increase your saving levels for future investments or retirement. Your net worth should grow in proportion to your investment levels and business strategies as you extend your real estate portfolio.

Cons

Big responsibility: Being a landlord comes with responsibility. If you are just getting started in a real estate investment business, be prepared to devote a great deal of your time and energy to managing your properties.

One possibility is to have your properties overseen by a management company, but this cuts into your profits and reduces control. Think carefully about this option.

Purchase financing may be challenging: Depending on the type of property and the amount of cash that you have on hand for a down payment, you may find that financing the purchase of your investment property is a bit of a challenge. Some lenders will require a larger down payment while others may charge a higher interest rate. You can also invest in a real estate syndication with partners that will sign on the note for you.