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Passive Income Real Estate Investing in Dallas & Fort Worth

Passive Income Real Estate Investing in Dallas

Do you want to know how to earn from passive income real estate investing in Dallas?

Well, you landed on the right page. Today, I’ll tell you all the information regarding passive income, real estate investing, and other good things in Dallas, TX!

I’ll cover the following topics:

  1. Passive Income Real Estate Investing in Dallas: Why Invest in Dallas, TX
  2. How to Buy An Investment Property in Dallas
  3. Things to Know About Investing in Turnkey Real Estate in Dallas
  4. Benefits of Passive Income Real Estate Investing in Dallas
  5. How to find a property in Dallas for Passive real estate income

Let’s start!

Passive Income Real Estate Investing in Dallas: Why Invest in Dallas, TX

Real Estate Investing pertains to purchasing a property with the intention to gain a profit.

Investing in real estate is deemed to be one of the most ‘secured ways’ of earning money. This type of investment is ‘overwhelmingly stable’ that even during times of high inflation rate, is still invulnerable.

In fact, Robert Kiyosaki, financial expert and the founder of the Rich Dad Company, said that there’s money in investing in real estate even during a major market collapse.

If you want to engage in real estate business, you don’t need to lay a huge capital. Start investing in real estate for as low as $5,000 (partnership venture) or if you have enough capital, you can start at $50,000

Aside from stability and low amount of capital, real estate business could also bring the following advantages:

7 INCREDIBLE Advantages of Real Estate Investment (as told by the EXPERTS)

  • Passive Income:

This is the edge of investing in real estate; you can earn passive income while doing nothing at all.

Let say you acquire a rental property, expect a continuous cash flow even if you are sleeping or on a vacation. The property will generate an income for you without the need for close supervision and management.

  • Building Future Equity:

Equity or shareholder’s equity refers to the money that would be reimbursed to a shareholder after liquidating all the company’s assets and paying all the outstanding debt. In other words, equity is part and parcel of your net worth.

Upon completely paying your mortgage, you also built equity. And as you keep on adding equity, you can also have the leverage to procure more properties and eventually improve your cash flow.

  • Impact on the Community:

While it is true that the main objective of investing in a real estate property is to gain profit, there’s also a noble benefit of doing this- your impact on the community.

You can help people in the community by providing them affordable housing units. You also help propel the local economy through your tax revenues.

  • Perks of Owning a Physical Asset:

Since real estate capitalizes in the physical assets, you are not affected by any market crash. This kind of stability and protection make the real estate investment far way better than engaging in stocks and bond ventures.

  • Tax Benefits:

Aside from a sure way of growing your wealth, real estate can also do the tricks of lowering your tax bracket.

  • Provides Leverage and Easy to Finance:

Real estate assets are easy to finance. You are even allowed to borrow up to 90% of the total acquisition cost. In most cases, these acquisition costs are so attractive and usually fall below the expected investment return.

This process of augmenting the investment return with external financing is called positive leverage.

  • Real Estate Value Appreciates:

Another benefit of investing in real estate is that it surely appreciates over time. The value of real estate properties mainly augments for two reasons:

  1. As the number of people who are interested to bid in a real estate venture increases, the yield or cap rate also goes up.
  2. With the rapid increase in construction cost and high demand of house rental, the rates of the real property establishments also increase.

Do you know that you can earn passive income if you invest in real estate in Dallas?

Here’s why.

Passive income is an earning from a limited partnership, rental property, or other enterprises in which a particular person is not directly involved. One of the best ways to earn passive income is through investing in real property.

Now, if you are searching for the best place to put up your real estate business and generate a passive income, you have to consider Dallas.

The population of Dallas, from 2010- 2015, exponentially grew, hence, opening rental apartments and other real property establishments in the city is a sure hit.

You can check some of the Dallas real estate investment firms if you have more questions regarding the status of the rental industry in Dallas.

Another reason why Dallas is best to set your real estate business is its financial stability. In retrospect, Dallas handled the last recession and continues to front a strong economy for the last five years.

You are also assured of the continuous influx of tenants in this city because most of the people who decided to move in Texas preferred to settle in Dallas.

Other reasons why you must invest in real estate in Dallas are the following:

  • According to a Forbes study, Dallas is the second fastest growing metropolis since 2016.
  • Dallas is the biggest city in Texas
  • Based on the Dallas real estate 2018 reports, there’s no reported case of profit loss in all of the real estate transaction in Dallas
  • Opened 661,000 new job vacancy since 2010 marking an all-time high job creation record in the entire US
  • Dallas is home to the world’s leading logistics centers
  • 26% of the total population of Dallas earns $100,000 of average annual income

With these reasons, it is safe to say that the right place to earn passive income in real estate investing is in Dallas, TX.

How to Buy An Investment Property in Dallas

Are you decided to buy an investment property in Dallas, TX? Or are you interested to engage in Dallas, Texas real estate market? The following information will make you equipped:

Based on the Dallas real estate market 2018 review, you have to perform the following preliminary measures before buying a property

  • Study the Market of Your Interest:

Study all the facets of the target market, including the ideal micro and macro investment sites. You also need to consider the A.B, C, D rating so as to fully understand the take of the people involved in your target market.

  • Create a Team:

Since you planned to earn passive income through investing in real estate, you need to build a great team. Remember, real estate is a team game so you need to recruit the brightest people in Dallas to help you win the game. These people will monitor, assess, and evaluate the performance of the business while you are away.

  • Establish Financial Stability:

While you can employ some sort of leverage (like debt) to procure a property, you still need to establish your financial stability as you go on with the business. If you want to learn how to handle debts and other financial tips, read here.

  • Save:

You need to have a stable financial portfolio if you want to succeed in real estate business. Though you can start with low capital, it would make a huge difference if early on; you already have enough backup accounts for any unprecedented events.

  • Get Leads:

Before you invest in real estate, make sure to get enough leads first. You need to research and find the best deals the market could offer for your business.

If you follow these preliminary measures, expect to get more favorable market deals. And from here, you will know the 5 steps of buying an investment property in Dallas.

5 Steps of Buying an Investment Property in Dallas, TX

1. Negotiation:

You need to negotiate with the owner or the seller of the property and offer a ‘win-win’ deal. In some cases, you might just be allowed to deal with a middleman, but still, do your best to come up with the best deal.

2. Due Diligence:

After entering a good deal, you have to observe the ‘due diligence’ time frame. Due diligence is simply the time allowance given to the buyer to inspect thoroughly the property that’s being sold. If major issues or problem is discovered, the buyer is allowed to retract the deal and void the contract.

3. Pre- Closing:

If you are fortunate enough to find no issues in the property within the due diligence period, the next step is the preparation to finally seal the deal. At this stage, you can prepare the request for a closing document and also the insurance title of the property.

4. Closing:

This includes the signing of documents, paying and receiving of funds, requesting for access keys, confirming the insurance, and taking photos to document the deal.

Things to Know About Investing in Turnkey Real Estate in Dallas

A turnkey property is deemed to be the ideal way to earn passive income in investing real property. This has something to do with purchasing a fully furnished property with an existing tenant.

You don’t need to drain yourself if you choose to invest in a turnkey property in Dallas, since majority of the people in the city are familiar with this type of arrangement.
Here are the things that you must know about investing in turnkey real estate property:

  • Before you engage to buy a turnkey property, make sure to ask the following questions: is the location convenient to the tenant? does the rate of the property match the status of the area’s market? do you want to hire a property manager or manage the tenants on your own? These questions are very important to address to check the feasibility of getting a higher return on investment.
  • Be aware that there are lots of fraudulent turnkey companies that sell a property for a low price and yet promise that you can get a high return of investment. To avoid deception, you must only deal with trusted people or those companies with a license to operate such business.

If you want to engage in turnkey investment, you must be willing to do extensive research. You need to understand the market status, also identify the areas where people are looking for turnkey properties.

If you live in Dallas, you can check the Dallas real estate analysis to get more information regarding the turnkey investment.

Benefits of Passive Income Real Estate Investing in Dallas

  • Steady Flow of Income:

Due to the financial and market stability of Dallas, investing in real estate there is a dependable source of passive income. In fact, real estate industry experts predict that Dallas will top as the best US city to put up a real estate investment.

  • Tax Benefits:

If you own a rental property, you are exempted from tax obligations. Tax exemption is the primary reason why investors preferred to align their track to real estate ventures.

Also, rental income is not taxable against the self-employment tax bracket if you engage in this type of endeavor.

  • Payment for Mortgage is Covered:

You cannot only maintain the property using the tenant’s payment, but you can settle your mortgage as well.

How to Find a Property in Dallas for Passive Real Estate Income

Investing in real estate is good, but how are you going to find a property in Dallas in which you can invest?

If you want to find the best places to invest in real estate in Dallas and eventually earn a passive income, I listed my five preferences below.

1. Dallas Properties in Coppell

  • Median Home Rate: $300,000
  • Median Rent: $1,100/month

2. Dallas University Park Properties

  • Median Home Rate: $1,000,000
  • Median Rent: $1,900/month

3. Dallas Investment Properties in Allen

  • Median Home Rate: $220,000
  • Median Rent: $1,300/month

4. Dallas Bluffview Properties

  • Median Home Rate: $600,000
  • Median Rent: $1,400/month

5. Dallas Lake Highlands Investment Properties

  • Median Home Rate: $280,000
  • Median Rent: $1,000/month

Do you find this article helpful?

Leave a comment below and let us know if you are interested to open a real estate business in Dallas soon.