Buy for Cash Flow or Appreciation

This question was most common back in 2006-2007 before the real estate market crashed. Everyone was a house flipper & was able to profit on deals. Values were going up 4-12% in a few months time & you were able to make a quick profit. That is what ultimately lead to the real estate bubble & total economic meltdown of 2009. 

Then the question presents itself, do I buy based on cash flow or appreciation. My recommendation to anyone reading this article is to always buy on cash flow. If you do, then you can typically make it through the rough patches as the property is still producing income & you are able to service the debt. If you buy based upon the value going up over the course of the next 2-3 years you could be in for a rude awakening if the market tanks. 

Cash flow is the one guarantee that you should be able to withstand any sort of economic contraction as long as you have decent tenants who are paying their rent. Establish your criteria you are looking for in properties, identify it, & don't go off the path. It is important to have a game plan in place prior to getting into real estate investing. 

If you need help or have questions on the topic please feel free to contact us! 

What Do I Expect on a Phone Call With a Cash Buyer

You inquired on our site & now you are wondering what to expect... Well, the first thing I would say is make sure to have your phone with you as Carter always tries to reach out right away to chat on the phone. But what will that phone conversation consist of? 

Questions from a Cash Home Buyer

In a typical conversation I like to get an idea of what you are wanting to sell the property. If there is absolutely no motivation to sell & you are just looking to get numbers thrown your way there is a good chance we will not be willing to help with that. Along those lines, it is also important to know why you reached out to a company like ours that buys houses for cash in Appleton WI. 

Typically, most people know that we buy houses companies can't pay retail value for a home in the area. Why is this? It is due to the fact that we need to make some sort of profit & also that we have to typically spend thousands of dollars on remodeling the property. Sure, you can always list it with a Realtor. 

But, then you will deal with 10-20 showings, inspections, repairs, & the list will keep going. 

Another question we like to ask is how did you hear about us. This one is pretty straight forward as we could have either reached out to you directly or you may have been searching for we buy houses Appleton wi. 

How can we help?

Wrapping up this article, a typical phone conversation will last anywhere from 5-15 minutes depending upon the situation. If we can be a resource in selling your Appleton wi house fast for cash please give us a call on our office line 920-215-4201. 

Using a Self Directed IRA to Invest in Real Estate

Something that is rarely talked about at the financial advisor or the brokerage level is the ability to invest in actual real estate with your retirement account. Most brokerage services such as e-trade, or fidelity, or vanguard will not allow you to do it. However, there are "custodian" brokerage services that grant you this ability. 

The custodian is essentially the watcher of your IRA account & they will grant you the permission to invest in an alternative investment other than your typical stock, bond, or mutual fund. It is achievable through the process of rolling over some or all of your IRA into one of their programs. 

Don't worry, if you have a ROTH IRA it will still remain in that category as well as a normal IRA. 

Now, the biggest stipulation with a SDIRA is that it needs to be completely passive or hands-off for your the owner. This means that you can't go buy a vacation house with the money & have it as an AirBNB. You need to invest your money in some sort of real estate asset that is either part of a syndication or that is managed by a property manager & they take care of everything. If the rules are not followed the IRS could target your entire IRA & tax you on the total amount. 

Of course that is the worst-case scenario. But, the reason behind people investing in real estate with their IRA is the following reasons: 

1) Real Estate is a Physical Asset that will NEVER go down to $0 in value

2) In most cases the "right" real estate will outperform the returns of the stock market. 

3) Real Estate appreciates in value over time

4) Rental real estate provides monthly cash flow

If you are wondering how you can diversify your portfolio reach out to us & we can set up a video or phone call. 920-215-4201