Real estate investment 101

No matter how big or small the property is, investing in real estate can be intimidating for beginners. An investor can lose big money. And it’s enough to scare him away.

The good news is, investing in real estate is not as daunting as it seems. It’s one of the safest investments, and many people make a killing out of it.

Kinds of investment

Real estate investment falls under five categories, namely:

  1. Basic rental properties
    This is the oldest, most basic way of investing in real estate. You buy property and rent it out to a tenant. As the landlord, you must pay the mortgage, maintenance, and taxes for the property. The tenant’s monthly rent takes care of these obligations.

    Best practice tip: Charge your tenant only enough to cover general maintenance costs and mortgage. Most of the rent becomes profitable once you’ve paid off your mortgage.

  2. Real estate investment group
    This one works like a small mutual fund for rental properties. A company purchases or builds an apartment block or a number of condos and puts them up for sale. You purchase one or several properties from this company and let them manage your investments. You earn through monthly rentals, a percentage of which you share with the company. Thus, you and the company share in the property’s earnings.

    Best practice tip: Generally, this is the safest way to invest in real estate. The lease under the investor’s name and all of the units are protected against losses when the property becomes vacant. This assures you of having enough funds to cover mortgage, whether your unit is rented out or not.

  3. Real estate trading
    Real estate traders buy property with the sole purpose of selling it off for a profit. They do this in two ways.

    • One, they buy undervalued properties and sell them off as is.
    • Two, they add value to the property by renovating it and selling it off at a higher price.

    Since traders have to sell the property as quickly as possible, both ways carry inherent risks.

    Best practice tip: Engage in real estate trading or “flipping” when the market is hot.

  4. Real Estate Investment Trust (REITs)
    A real estate investment trust is made when a trustee or corporation uses investors’ money to operate and purchase income properties. Options for this kind of investment are more varied. It allows the trustee or corporation, for instance, to invest in malls or office spaces. It’s also a great way of generating income on a regular basis. REITs are also highly liquid.

    Best practice tip: A trustee or corporation must pay out 90% of its taxable profits through dividends to maintain its REIT status.

  5. Leverage
    This allows you to purchase on margin. You buy the property for as little as 5% mortgage. The best part is, you control the property and the equity it holds, all for a fraction of its total price.
  6. Best practice tip: This is perfect for investors looking for a second mortgage. Leverage allows you to put down money in as many as two to three other properties. You enjoy greater freedom in deciding whether to sell the property or rent it out. You also exercise total control over these assets, having paid only a fraction of its value.

Knowing what kind of investment to make is an important step in making your money grow.

If you want more advice or help, contact us today.

Kentucky events and festivals in 2016

The Bluegrass State sure knows how to celebrate – whether it’s for a world-famous horse race, an arts and music festival, a sports event, and the century-old practice of bourbon making.

There is no shortage of interesting things to do and see in Kentucky.

And residents and tourists are saving plenty of dates for some of Kentucky’s best-loved and most-awaited celebrations this year.

  • Kentucky Derby Festival (April 18 – May 7, 2016)
    No festival can stretch the most exciting 2 minutes of a sports event into a month-long festival. After all, this annual celebration attracts 1.5 million people every year in a month-long extravaganza of horse racing, fireworks, sports competitions, concerts, and kid-friendly activities. The audience is not limited to horse racing aficionados, but people of all persuasions. Other festival highlights are hot-air balloon events, the Great Steamboat Race, and the Pegasus Parade with the country’s best marching bands and equestrians.
    Where: 1001 South Third Street. Louisville, KY
  • Hillbilly Days ( April 21 – 23, 2016)
    This two-day celebration is one of the state’s largest festivals. Most of all, it’s for a good cause. The annual event which started in 1977, raises funds for the Shriner’s Children’s Hospital in Lexington, Kentucky. You see artists and craftspeople displaying their handiwork amidst mountain music, clogging, and square dancing. Men, women, and even children in their wildest hillbilly outfits add a special flavor to the celebration.
    Where: 214 South Riverfill Drive, Pikeville, KY
  • Lower Town Arts and Music Festival ( May 13 – 1 4 , 2016)
    Admission to this celebration of culture in Paducah is free. Open studios and galleries feature the works of visual, performing, and culinary artists in the area. More than 50 booths showcase the work of visiting artists. Live music and food give locals and tourists the best the historic town of Paducah can offer.
    Where: Lower Town Arts District, Paducah, Kentucky (South)
  • Glasgow Highland Games ( June 3 – 5, 2016 )
    No other event can equal this celebration of tradition and history at the Barren River Lake Skate Resort Park in Lucas, Kentucky. Sports teams, bands, dancers, and pipers engage in friendly competition. Clan tents offer genealogy classes. You don’t need to have Scottish or Irish blood to enjoy the festivities. Just follow the sound of the bagpipes and you’re in for a wonderful time.
    Where: 119 E Main St, Glasgow, KY
  • Kentucky Bourbon Festival (September 13 – 18, 2016)
    Having originated in Kentucky in 1776, bourbon is celebrated each year in festivities centered in Bardstown, which calls itself the Bourbon Capital of the World. Visitors tour distilleries, learn more about bourbon through informative exhibits, and enjoy music and other forms of entertainment. The festival continues to attract thousands more than 20 years after it was first held.
  • 33rd Annual Salt Festival ( Oct 14 – 16, 2016)
    The site where the festival takes place was once a smelly, salty swamp that attracted herds of bisons, wild horses, mammoths, and mastodons during the Pleistocene era about 1.8 million years ago. These ancient beasts milled around the mineral and salt springs, licking their fill and betraying their location to hunters. Later, native Americans and early settlers would unearth the beasts’ big bones in the area. Today, the festival recalls those days with activities like pioneer life camps, flint knapping, salt making, weaving, spear throwing, among many others. Don’t forget to check out the Big Bone Lick State Historic Site’s bison herd.
    Where: Big Bone Lick State Historic Site, 3380 Beaver Road, Union, KY

Thinking of buying a home in Kentucky? Then, contact the local experts today. We customize and offer competitive price options.

Louisville in 2016

Louisville is a city teeming with surprises.

Long known as the home of the famous Kentucky Derby, this southern city has opened its doors to people from all walks of life. Its affordable cost of living, metropolitan vibe, and abundance of green, open spaces have attracted the upwardly mobile and the affluent alike.

These factors make moving to Louisville not just an option, but a must for those in search of an amazing life.

Here’s why:

  1. Louisville has amazing and affordable housing options

    Neighborhoods exude charm and character you don’t find elsewhere in the South. The century-old urban neighborhood of Germantown is a fine example. Its shotgun houses and bungalows make it one of the most sought-after places to own a home in. The same thing holds true for other areas in Louisville, where an abundance of affordable, quality houses make it easy even for millennials to buy their first home here.

  2. Louisville is building more apartment complexes

    Increased demand for these types of housing, which started in 2015, is expected to continue this year. That’s why a growing number of developers are rushing to build apartments in the heart of the city. No wonder you see 261-unit apartment complexes, multifamily developments, and other types of residences waiting for its rightful owners.

  3. Louisville’s downtown area is poised to be king

    The resurgence of interest in the downtown area is keeping developers busy with projects that reinvigorate the housing sector. Two projects – one under construction and another focusing on renovation – are already creating a buzz in the city. These projects are expected to give residents even more amazing rental and residential options.

  4. Louisville’s developments are expanding to the outskirts

    Derby City’s southern and eastern outskirts are on their way to becoming the city’s next hotspots. More and more investors are seeing opportunities in and around the city, and fast-rising developments are all over. The once underdeveloped Little Spring Farm, for instance, is poised to become the next exciting new community. A soon-to-rise apartment complex n the area is expected to lure professionals. A lot more big residential projects are in store this year.

  5. Louisville is experiencing a housing boom

    Horror stories about sky-high prices for broom-closet spaces in hot markets may be sending shivers down people’s spines these days, but not in Louisville. In fact, the city is experiencing a housing boom. The number of building permits has risen by 10% in 2015. This should ease the inventory and offer eager buyers even more options.

  6. Louisville’s affordable housing attracts competition from out-of-town buyers

    Competition rises when pickings are the best. So it’s a good idea to invest in Louisville real estate now, while housing is affordable and about to be on the radar. Great deals await out-of-town and institutional buyers looking for homes to invest in. So now is the best time to buy your dream home. You don’t want to get lost in the swelling ranks of competitive buyers, do you?

To learn more about housing options in Louisville, contact the local experts today. We customize and offer competitive price options.