We ask Adam Lauber an insurance professional about hail damage which is pretty common out here in Colorado. The springs storms bring some interesting weather so its important to know about this if you purchase or own a home in the Denver area.
This is a great question I get asked all the time especially in this hot Denver market. People want to sell right now to take advantage of the prices but need time to get into their new place. Using a Post Closing Occupancy Agreement is becoming very popular. What this means is you sell your home and then set a short lease term - say 30 days for example to "lease" the home back from the new owner. Its a great option for both buyers to get the home they want and the seller to have some time to move.
3 Reasons Why Buying an Investment Property Is the Best Way to Build Your Net Worth
Whether you have recently graduated from college or are getting close to retirement, it's likely that you have given some thought as to how you can grow your net worth.
Reason #1: It Generates Passive Income
One of the best reasons to hold real estate as part of your investment portfolio is that it can generate passive income in the form of rent. Whether you buy a single-family home or an apartment block, you can almost certainly find interested tenants who will live there.
Part of the rent you receive each month will cover the costs of owning and operating the property. The rest of it is income which will continue to build over time.
Reason #2: It Increases In Value Over Time
Another great reason to invest in real estate is that in most cases, it increases in value over time. As long as you are maintaining the property and investing in its upkeep you have a decent shot at it being worth more in the coming years, should you decide to sell.
Keep in mind that real estate is cyclical and that it's not always going to be the right time to sell and realize your gains.
Reason #3: You Can Leverage Equity To Buy More Properties
Finally, our third reason that real estate is the best way to build your worth is your ability to use it as leverage to buy more real estate. For example, say you decide to purchase a house valued at $100,000 as an investment property.
Once the mortgage on that home is paid off, you have an asset valued at $100,000 that you can then borrow against. So you can go out and acquire another $100,000 home without having to sell the first. As you can see, this can scale quite nicely over time.