Things cost you what they cost, right? That much seems obvious. If you want to buy 1000 dollars worth of stock, you’re putting 1000 of your own dollars out of your own pocket into that investment. There’s no getting around it- stocks, bonds, mutual funds, gold… whatever your investment is, you’re going to have to pay what the market asks of you.
Except, that’s not the case with real estate. When you purchase a property, a bank will typically finance between 75 and 85 percent of the cost. Your responsibility is only for the remaining percentage, which you put in as a down payment. And yet, 100 percent of the investment (the property) is under your control.
A bank would laugh in your face if you asked them to cover 85 percent of the cost of a few ounces of gold. But if your investment is in real estate, they’re singing a different tune. If you have good credit and are able to make that 15-25 percent down payment, the bank will cover it.
Banks love helping people invest in real estate, and that’s a fantastic thing for investors. By having a bank finance the vast majority of the cost of the investment, investors can minimize the amount of money they have to put into the deal. From there on out, they see all the profits from the property. And remember, real estate has many profit centers!
There are so many possibilities at every step of the way, from the leverage and instant equity we can find when you initially purchase the property, to the profits we make from renting out units, to the value the property gains, all the way out to the potential for reinvesting the money you’ve made off of a property. That’s the great versatility of real estate, and it all begins with making that initial investment.
The simple fact that a bank will be willing to finance an enormous part of the cost of a real estate investment, while still allowing the investor to reap all the rewards, is part of the reason real estate is such a great choice. With the help of a bank, investors can minimize how much of their own money they have to spend, while maximizing what they’re able to make in profit. You don’t have to dump all of your own money into the transaction- the bank can help make it happen. What’s not to love about that?
Robb and Penny are owners of a real estate investment company, Mountain View Investors. We have been actively involved in Albuquerque, NM for our Fix and Flip projects. In Kansas City, MO area for our Buy and Holds properties. We have been investing in Albuquerque, NM for 9 years.
Our mission is to provide quality housing for first-time home buyers and owner-financed buyers, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!
Robb and Penny offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Robb and Penny.
For more information about Robb and Penny and their investment program,
please call (505) 404-1131, or visit https://robbkrautbauer.com/