real esate as an investment
real estate makes a great investment vehicle for almost every American! there are number of reasons real estate makes a great an investment. we believe they’re 4 major reasons we believe why everyone should consider adding real estate to their investment portfolio.
1. leverage & Accessibility
2. Law of Bigger Numbers
3. appreciation
4. principal reduction
Leverage & Accessibility
One of the best attributes to real estate as an investment is leverage and accessibility. While most investment vehicles require a lot of cash, you can invest in real estate with a relatively small down payment. The ability to finance a leverage the home as collateral allows you to invest at a larger amount than possible with other investments.
Additionally, real estate financing is widely available throughout the United States allowing anyone the opportunity to finance real estate.
Law of bigger numbers
Real estate appreciates/grows based on the value of the total investment (home), not the cash you invested (down payment).
> If you invested $50,000 in the S&P 500 10 years ago you would seen a return of 142.65% on your $50,000 and you would have made $71,325.
> If you invested $50,000 as down payment on a $500,000 home you would have seen a return of 93.37% on your $500,000 and you would have made $466,850!
Appreciation
while we all remember the “down” years, historically real estate has been one of the most stable investment vehicles. in fact, over the last 60 years home prices have increased 53 out of the 60+ years!
Home prices have increased from $17,000 in q1 of 1963 to $436,800 in q1 of 2023. in the last 10 years prices have increased $176,400. Inventory problems will continue to push home prices higher for the foreseeable future
Principal reduction
every month you make a mortgage payment you principal balance is reduced and this happens whether you are making the payment or your tenant is making the payment for you. On it’s own, principal reduction on a median priced home can increase your wealth by over $70,000 in the first 10 years!
Real Estate Finance Planning
Similar to any other investment, investing in real estate requires planning to ensure you implore the right strategy for you and your family. There are hundreds of different strategies in real estate planning, but some of the more common strategies are:
– principle residence acquisition and retention
– rental/investment properties
– vacation rental acquisition
– reverse mortgage
– college tution offset
– debt reallocation
– Multi-Family
– 2nd home
Real Estate Finance Management
We assist all of our clients manage their real estate finance projects with our regular progress monitoring, real estate wealth management tools, and semi-annual or annual meetings.
Free Consultation
Want to learn more? whether you are ready now, want to plan for a few years, or just want to see if real estate is the right investment for you. contact one of our loan officers/real estate finance planners below.
Our Real estate finance planners
Adam Fry
Loan Officers
Phone: 303.503.3767
Website
Matt Powell
Loan Officer
Phone: 720.331.2458
Website
Alexa DePaolo
Loan Officers
Phone: 720.862.5600
Website
Michelle Merritt
Loan Officer
Phone: 303.514.8907
Website
Alexis Pacheco
Loan Officer
Phone: 720.645.5641
Website
Renee Soberano
Loan Officer
Phone: 785.410.4157
Website
Liz Carrera
Loan Officer
Phone: 303.960.2678
Website
Sean Selters
Loan Officer
Phone: 720.683.1097
Website
Jonathan Bahe
Loan Officer
Phone: 720.771.1293
Website
Tiffany Quintana
Loan Officer
Phone: 720.810.2940
Website