Lee Morof's Real Estate Blog

Now is a great time to get into the investment real estate market. Not only does investment property give you a real tangible asset for your portfolio, investors in Michigan real estate can also get investments at great prices right now.

Here are four ways investors in Michigan real estate can make money from potential investments that you might want to consider.

• Rental properties.  Not everyone enjoys owning rental property, but it is one of the most profitable ways to make money from real estate.  Rental properties give you a constant residual income that lasts as long as you keep the property.

• Flipping. While the house flipping craze of the 80s and 90s cooled down with the current mortgage and housing crunch, for serious investors who take the time to know what they are doing, it is still a viable means of making money in real estate.  This is typically a shorter term method of real estate investing.

• Rehabbing. Buying a house to live in while you fix it up and resell it is similar to flipping, except that most rehabbers take longer to renovate the home, and use it as their primary residence while doing the work. There are three reasons this is a more comfortable way to flip real estate investments. First, you have a place to live and don’t have to pay a mortgage on another property.  Second, you don’t have to feel as pressured to sell in a short period of time the way you do a flip.  Third, you may receive all the homeowner benefits like tax breaks and no capital gain tax.

• Subdivide. This form of investment requires a little advance preparation and investigation. When you discover a sizeable piece of land at a good price, find out if it is zoned so you can subdivide it.  If it is, you can profitably sell off individual parcels to those who want to build on it.

If you are one of the investors in Michigan real estate and would like more information on investment tips that makes sense for you, I can help. Contact me at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
Associate Broker/Attorney  
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

With rising real estate sales, many investors in Michigan real estate are starting to wonder if Real Estate Investment Trusts are once again a potential opportunity. Home sales have gone up for the past six months in a row, homebuilding price indexes are rising and investors are turning optimistic. Is it really a good time, though?

What are REITs?
REITs are Real Estate Investment Trusts. These trusts invest in property then sell shares to people or businesses. If the REITs make a profit, that profit is split between shareholders as dividends. Many investment trusts cover a full portfolio of Southeast Michigan real estate and other real property, rather than just one property. In the past, they’ve been incredibly popular because they trade like stock and dividend yields are normally at the top of the market.

Not All REITs Are Created Equal
It’s important to remember that real estate investment trusts come in different shapes and sizes. As well, REITs report rental income, rather than sales, as revenue. Keeping rental income in mind, it becomes obvious REITS with long-term leases and high occupancy rates are generally better than others to invest in. Also, the higher the occupancy, the easier it is to raise rental rates (although this is probably not good business at this time due to the current real estate market).

Investing in REITs Now
If you’re thinking of investing in REITs now, don’t forget that they may only benefit in a particular market. For instance, many individual investors in Michigan real estate are purchasing unfinished homes at steep discounts, investing a little more to finish the homes and then renting them out. As most real estate agents, blogs, articles and magazines will tell you, the rental market is doing quite well, so this may be a viable option for you.

No matter what type of Southeast Michigan real estate you’re thinking of investing in, remember that any type of investment is risky. Is it time to invest? Ultimately, only you can make that decision. Do your research, check your funding, then – and only then – make an informed decision.

If you’re one of the investors in Michigan real estate and are interested in finding good Southeast Michigan real estate investments, I can help. Call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640