Summary: Real estate can be a great asset to invest in. This article identifies specific ways for people to get involved with investing in real estate, and highlights reasons why people should get involved as soon as possible. It also encourages readers to reach out to Sammamish Mortgage for more information.
One of the most essential points of investing is diversification. It is important for everyone to diversify their investments in order to minimize the risk of big losses. Diversification means placing your resources in multiple asset types. No matter how exactly you decide to diversify, one asset you should almost always invest in is real estate. In a healthy market, real estate should appreciate in value. In some markets, it can skyrocket in value.
Investing real estate is often less risky than investing in individual stocks; in most cases, it can provide a much higher return on investment than a typical savings account, or even a money market account. On the other hand, people often think that they require a large amount of money to even think about investing in real estate. This is not always the case.
Of course, where there is a risk for reward, there is also a risk for loss. As the housing crisis of 2008-2009 showed us, it’s possible for real estate investors to lose vast quantities of money. If you do decide to put your funds in real estate, you need to be aware that there’s still a possibility that your investment might not pan out. Fortunately, many markets in the State of Washington are currently good bets for investors. Markets such as Seattle and Bellevue, for instance, have seen big gains across a variety of different real estate types. If you’re careful and intelligent about investing in real estate in WA State, the chances are good that you’ll be able to see healthy returns.
In this post, we will discuss a few ways that people can get started with investing in real estate in Washington State. We will also discuss why it’s a good idea to start this process sooner rather than later.
Buying Property Outright
One of the most straightforward ways to get started with investing in real estate is to buy the property outright in an area that is set to appreciate in value. Then, people can rent the property out to tenants as a way to generate a steady stream of income. To do this successfully, you’ll need to conduct research on the markets in WA State which are likely to produce high returns. This is why many people think that they need a large amount of money. Buying property is expensive and purchasing buildings in cash can be prohibitively expensive. Fortunately, there are other ways to become a purchaser.
Joining A Real Estate Partnership
Aside from buying a property outright as a single buyer, another option is to join a real estate partnership. In a partnership structure, the various members pool their money together to buy large buildings. These buildings might even include individual apartments that can be rented out. Joining a real estate partnership is a more feasible option to get started in the real estate investing market. People might even be able to join for as little as a few thousand dollars.
Become a Co-owner in a TIC or DST
Another way you can become involved in real estate investing is to become a co-owner in a property that is jointly owned in either a tenancy-in-common (TIC) or Delaware statutory trust (DST) ownership structure. TICs and DSTs are structures that allow many different investors to co-own highly expensive pieces of real estate, such as apartment complexes, stadiums, large commercial centers, and so forth. Each of these structures has its own specific rules and requirements, but both follow the same basic purpose. Both provide investors an opportunity to co-own a given piece of real estate. These structures may also provide people with an excellent avenue to get involved with investing in real estate at a reasonable price. For instance, in a typical DST, an investor may be able to co-own a particular property for as little as $100,000.
Finally, there are real estate crowdfunding partnerships popping up as well. Joining a real estate crowdfunding group is similar to buying shares of a company in the stock market. This offers an opportunity for people to get involved in the real estate market for an even lower cost. This is becoming a more popular option across the United States.
Lower Interest Rates
Interest rates are lowest they have ever been. Rates have already been on a decline over the past year or so, but they have plummeted even further as a result of the coronavirus that has plagued the nation and the world as a whole.
Yet as bad as this virus is affecting many aspects of life, it is bringing interest rates lower, which is making homebuying more affordable for buyers. As of this writing, mortgage interest rates are 3.36% for 30-year fixed-rate mortgages. Lower rates can shave off tens or even hundreds of thousands of dollars over the life of a loan that otherwise would have been spent on the interest portion of a mortgage.
Invest In Real Estate
In the end, people do not necessarily require a large amount of money to invest in real estate if they know where to look and who to ask. There are plenty of ways to get started in the real estate investing market. People only need to know where to turn.
Be sure to consult with your trusted mortgage professional to discuss current financing options.
Get In Touch With Sammamish Mortgage
There are lots of ways to get involved with investing in real estate, and there are lots of reasons why you should choose to do so. In this post, we’ve gone over a few of the avenues which allow you to enter the real estate investing market. And we’ve also highlighted the primary reason why you should get involved as soon as possible: simply put, real estate can be a highly lucrative market, and it’s an asset class which every serious investor needs to consider thoughtfully. As we’ve mentioned, WA State presents many compelling opportunities for aspiring real estate investors. Many markets in WA State have high median home values, and plenty of WA markets are on the upswing. In recent years, we’ve seen Tacoma, Marysville, and other markets on the periphery of Seattle rise significantly. If you’d like to learn more about investing in WA State real estate, get in touch with Sammamish Mortgage today. The professionals at Sammamish Mortgage have a detailed knowledge of the various markets in WA State and are willing to make their expertise available to you. Sammamish Mortgage is a family-owned mortgage company with over two decades of experience. Contact us today to learn more, or View Rates now to check current rates. You can also click to obtain a Rate Quote, or Apply Now to use our automated application software.