Tag: Real estate

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5 Reasons to Invest In Real Estate

Hi everyone! It’s Michael Gortenburg here. 

As many face financial difficulty in the wake of the pandemic, you may look for ways to boost your income. Real estate provides great benefits for those looking to diversify their portfolio and avoid riskier investments. Here are five reasons why you should invest in real estate:  

Tax Benefits 

When tax season arrives, real estate investors are able to write off fees for managing their properties. The costs of owning and operating can provide some decent tax breaks. If you’re able to sell your property for more than what you bought it for, then it won’t be counted as taxed income. 

Chance to Build Capital 

If you invest in the right properties, you’ll be able to expand your capital by selling it once its value has risen. One of the main goals of investing in real estate is to build out capital, or cash. What’s important is making sure you’re investing in the right properties and knowing the right time to sell. 

Diversification 

In times of economic turmoil, such as the one we’re currently facing, diversification can be key to protecting you from riskier financial investments. If certain stocks are facing a downturn, your real estate could still be increasing in value, protecting you from greater financial harm. 

Stable Cash Flow 

Renting out property to tenants is a good source of additional monthly income. After mortgage payments and any supplemental operating costs, the additional profit leftover is yours to take. Just make sure you’re renting out to reliable tenants. You don’t want to constantly be short of a check by the end of the month and have to cut into your own funds. 

Inflation Protection 

As inflation increases prices, property values also increase. You’ll be able to make more for higher operating expenses in order to compensate where you’re paying more in other areas. 

Figure out what kind of real estate investment is right for you. Do you want to rent out a property to families or business owners? The most important thing when investing in real estate is choosing the property that aligns with you and your goals. You’ll want to choose a property that will ideally move up in value instead of depreciating. Either way, you’ll be able to expand your financial resume and receive several financial benefits. 

If you want to learn about ways to boost the resale value of property you already own, read my blog here about home renovations I recommend. 

Michael Gortenburg, Founding Principal of Eighteen Capital Group (18CG) in Kansas City, Missouri. 

Also follow Michael on Medium, Twitter, and Xing. 

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3 Strategies to Help You Acquire Premium Real Estate Investments

Before my partner and I built the foundation for Eighteen Capital Group (18CG), I started buying and flipping residential properties around the age of 36. Flipping residential homes in the Kansas City area soon became a passion of mine, and a few years later with a couple of flips under my belt, I was ready to elevate this hobby of mine. Within the next few years, I went into the apartment building and management business where the idea for Eighteen Capital Group came to life.

My career has been shaped by making smart and informed real estate investments–as this market has the ability to bring great wealth to individuals who have a keen eye for investment, economics, and of course, risk. With the right strategies, real estate investments can generate extra income and propel your business forward.

If you have an interest in real estate ventures but are unsure of where to start, here are three of my top strategy recommendations.

1.) Fix it and Flip it

Flipping houses was my first step through the door of real estate investments, and it truly gave me a deeper appreciation for the industry as a whole. You value the time, the money, and all the details that go into each renovation. The fix and flip strategy is optimal for those who like a good challenge. The key to flipping a home is locating a property that exudes potential. You’ll want to think carefully about the location, the market, and the type of client the finished product will draw in. The fix it and flip it method is an excellent way to generate cash and support future projects.

2.) Rentals and Short-Term Buys

Holding short-term rental properties–typically one to five years–allows for property appreciation through rent prices, remodeling, and lower expenses. On the other hand, short-term buys are quite beneficial for those who invest in multi-unit apartments or have various flipping projects. Short term buys and rentals tend to work best in higher prices markets.

3.) Real Estate Investment Trusts (REIT)

For those who are interested in real estate investment, but don’t have the time to be too hands-on during the process, you may want to weigh the option if REITs. Real estate investment trusts allow individuals to invest in real estate without the need to be involved in every step of the way. But first, you have to select the type of REIT that will be most beneficial for you and your specific needs:

  • Equity REITs: property investments
  • Mortgage REITs: mortgage investments
  • Hybrid REITs: a mixture of property investments and mortgage investments.

While it’s essential to select the type of real estate investment trust that works for you, do note that each of them offers higher yields. This means you will receive a return in finances from the interest that others are paying on their mortgages.

What started off as a hobby, turned into a long-time and successful career for me. With the right strategies and mindset, the same can happen to you too. I hope you find these strategies useful in your next real estate investment endeavor.

~ Michael Gortenburg Kansas City, Missouri

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Make Moving Day Easy

They say that moving into a new home can be one of the most stressful things that a person can deal with. Maybe that’s because there are a lot of things to consider: the commute to work, the kids’ new schools, learning how to get around the general area and more…there’s a lot. In fact, some people might feel a little overwhelmed throughout the whole process.

With such a stressful time, the one thing that shouldn’t be stressful is the actual move itself. As a Founding Principal of Eighteen Capital Group (18CG) in Kansas City, Missouri, I have seen a lot of movers in my time through our work developing and managing multi-family housing.

I’d like to share a couple of quick moving tips to make your next move a lot easier.

Tip #1: Start Early

After you’ve decided to move into a new home – it’s never too early to start planning. The planning phase includes researching your new area, strategizing for commutes, boxing up all of your belongings, scheduling movers, and a million other things that have to be completed over the course of weeks.

One helpful way to handle this often-challenging phase is to break the process down into small chunks and knock out the steps at a slower pace to avoid feeling rushed or overwhelmed. Make a list of steps that must be completed before/after the move (change your addresses, inspect and childproof the new place, etc.)

As far as packing – this is a perfect opportunity to throw out or sell all of those items that have been cluttering up your closets and spare rooms. You would be shocked at how much you can actually get rid of when you take the time for an honest assessment of what you need. It’s quite a freeing feeling to drop items from your past.

Another note on packing is to start with the nonessentials. Put away as many things as you can prior to the moving date, then once the final day rolls around – you will have very little to do. When you are packing for the final move, group boxes by room so that you can easily unpack them in your new place accordingly.

Finally, avoid harder-than-necessary moving experiences by place heavier items into small boxes

Tip #2: Make All Arrangements Ahead of Time

So, it’s move-in day and you’ve finally arrived with your new things, but there’s just one little problem – there’s no power!

After managing housing units for years, I am never surprised by the amount of people who forget to notify or setup utilities for their new place prior to moving in. Ideally, you should make contact with all services to have everything squared away by the time you arrive.

You will obviously need power to move in and will want the A/C circulating to clear out any sitting air. You will also need the water on and running, as you never know what impromptu cleaning may be needed when you start to settle in. And I would be shocked to see a family that doesn’t require the internet/cable for personal or work purposes upon moving in. All of these things can be arranged ahead of your move-in to avoid any last-minute headaches.

Also, make sure you work with any moving teams in advance so that everyone is on the same page for the big day. You don’t want to be sitting around waiting to load up your things. Luckily, most moving companies are very professional and will work to ensure your experience is as smooth as can be.

Tip #3: Settling In

Once you’ve finally gotten everything moved into your new home, it’s time to start the long process of settling in.

First, I always recommend a careful walk-through of the new property just to confirm that there aren’t any lingering issues that need to be dealt with. And make sure to check cabinets and to test out things like faucets, AC units, and power switches. Never just assume that everything works perfectly, because a previous tenant/owner may have neglected maintenance.

If you’re renting, go room to room and make a list of any problems that you encounter. You should have an opportunity to alert the landlord for repair and avoid responsibility for any damages.

Once, you’ve cleared the new place and you’re ready to begin unpacking, start with the essentials first. Things like setting up your bed, stocking away any groceries that you might have, and organizing your bathroom are all great places to begin.

Then it’s really a matter of taking your time and unpacking as you go. You may wish to experiment with furniture placement, or you might want to just dive right in – but this is the part of the process where you can relax and have fun with it.

Moving In and Moving On

Moving to a new place can really be stressful. Don’t make it extra work with added difficulty. It ultimately comes down to planning. The earlier you start, the more time you have to prepare and the easier the process will be.

Hopefully by following these simple tips, you’ll be more prepared to deal with the day when it inevitably comes.

If I left anything out, feel free to drop some tips in the comments below.

Until next time.

~ Michael Gortenburg Kansas City, Missouri