The Best Ways to Save Money on Your First Rental Property

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Investing is a key strategy for growing your money by taking a risk (return is not guaranteed). Good news: real estate is an area of ​​choice for those who want to put the odds on their side. The options are numerous in the medium or long term, with immediate or delayed results. Here are the best strategies for a profitable Financial Real Estate investment.

How to grow your money quickly in real estate?

Investing in real estate is not a sprint but a marathon: in other words, this operation requires patience, time... and a good knowledge of the terrain. Indeed, to generate an interesting capital gain, you need to plan an investment horizon of 5 years (minimum)... and, ideally, one or two decades! Therefore, choosing an agency like VP Capital that provides the best Real estate finance services in the USA is a good decision.



There are also several categories of rental property to choose from:

  • Bare rental 
  • Furnished rental
  • Micro-rental (local, parking, cellar, box)

To prepare your real estate project well, consider all these parameters. They will optimize the profitability of the property but also reduce your taxes, provided you target the right devices.

Bare Rental

Bare rental is one of the simplest to set up because you don't have to furnish your property. So, you rent your apartment without furniture, and the tenant arrives with his own. But, on the other hand, the income you will be able to draw from this type of rental will be lower than if you had furnished the property. You can take real estate loan from a reliable firm like VP Capital Lending to buy a property and rent it out.

Furnished rental

In this type, you rent your property with the furniture, and the tenant will only have to enter the apartment. It is advisable to rent your property to young professionals or students because they move regularly and are less subject to life changes, i.e., loss of job, divorce, etc. There are many categories in this field. It can be a professional rental, an apartment building, or a studio room.

 

Short-term rental and Micro-rental

You just rent your property by night, like a hotel. Thanks to Airbnb, for example, you will be able to rent your accommodation. With a short-term rental, you will triple your income compared to a bare rental.

Micro-rental is easy to implement: you buy a parking space/box, and you rent it; you don't have to do anything.

However, there are shortcuts. Contacting a Real estate finance services in the USA can help.

To grow your money quickly, you have three options:

1. Choose a short-term investment with a rapid return on investment,

2. Choose an investment that generates interest from the first months.

3. Real estate crowdfunding

This type of crowdfunding works as follows: individuals contribute to initiating a real estate project. When the construction is completed, each investor is refunded their initial investment, plus interest. 

Real estate crowdfunding promises an attractive return of around 10%. It also allows you not to block your contribution for too long: the investment period is 1 to 3 years. However, in return, you have to accept higher risks: you can lose all or part of your funding if the project does not succeed.

How to invest money that brings in every month in real estate? | Financial Real Estate

Another way to make your money grow is classic rental real estate. Unlike REITs, rental real estate allows you to pilot your project alone. You generate additional income every month thanks to your collected rent.

As with any investment, the profitability of a rental project is not guaranteed. Do you wonder if buying Rental Property is profitable? It largely depends on the rental property you choose:

Is the gross return sufficient (between 5% and 10%)?

Can your rental income amortize management and maintenance costs?

Is the property located in an area with sufficient rental demand?


The Wrap

You can save extra costs on your real estate property by implementing tips and tricks provided by lending gurus in the industry. VP Capital Lending is one of the leaders in the market of Real estate finance services in the USA. They helped a lot of real estate investors with the whole process. VP Capital Lending is a Commercial real estate lender that simplifies the process of getting a real estate loan and starting to make more money from your property. 

 

 

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