5 Things People Should Know About Real Estate

    If you’re thinking about getting into real estate, you can congratulate yourself on doing the right thing. Owning assets that increase in value over time is one of the most recommended things one can do. If you ask an athlete or a celebrity or anyone that has made a fortune, you’ll find out that within their financial portfolio is some real estate ownership. This doesn’t mean each and everyone has a portfolio of which real estate makes up 100% or 75% of it, all we’re saying is that they all own real estate in some form or another; big or small.


    Understanding Appreciation

    Now the most important word as mentioned in the paragraph above is appreciation. Appreciation is the increase of value in a real estate property over a period of time. This could be from local development or local growth nearby in the city or just a stronger performance in the market. Be aware real estate doesn’t always go the way you want it to and appreciate just like that. The increase is and will always be challenging to foresee, otherwise everyone would put their money in real estate. With that being said, most professionals insist to leave appreciation out of the real estate equation and expectations.


    Pick Your Strategy

    What you’ll want to do is focus on the different strategies that are applicable when investing. There are a few strategies that have been around since before your grandmother was born, such as taking the rental property approach or the traditional fix and flip. You can also provide a leasing option and even a rent-to-own strategy. Whatever direction you go, it’s important to plan out what might be the best strategy for you so you can accomplish what you are after.


    Real Estate Math Metrics

    Another important thing to be aware of is real estate math. There are tons different real estate math metrics for understanding and analyzing your investment. You’ll need to be analyze and do the math for different opportunities, understand different values, understand profitability and what those will mean in your plan going forward. Some terms to be aware of are ROI (return on investment), cap rate and cash on cash return for example. All terms are equally important and must be noted when investing in real estate! There are many free guides online on how to calculate them!

    Understanding Laws & Taxes

    It’s extremely important as an investor to understand that laws and taxes play a huge role in your process. One of the biggest mistakes people make is the lack of knowledge when it comes to the laws and taxes. Mistakes could mean that you lost money on an investment or even a loss on a property altogether. The easiest way to avoid a simple loss is to reach out to any legal or financial advisor that is experienced with taxes to help you plan things out appropriately.



    Most people think in order to invest in real estate that you have to have all this money, but what you’ll find is that most everybody borrows money from a lender. This is called financing. It is important when you get to this step that you’re aware of all the different options one may have. Some of these small details can actually make or break successful deals. It is important to know and understand them so you can see the highest return on your investment! Become knowledgeable today.

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    Real Estate Solutions Group aka RESG is Washington’s most innovative real estate team. Serving the greater Seattle Metro for luxury homes, residential home buyers, home sellers, real estate investors, new construction, land, and land development.

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