We don’t support this browser version anymore. Using an updated version will help protect your accounts and provide a better experience.
Update your browser
Please update your browser.
We don’t support this browser version anymore. Using an updated version will help protect your accounts and provide a better experience.
Update your browser
Home
Sign in
Free credit score
News & Stories
OPEN AN ACCOUNT
CONNECT WITH CHASE
Customer Service
Give feedback
Schedule a meeting
Find ATM & branch
It appears your web browser is not using JavaScript. Without it, some pages won’t work properly. Please adjust the settings in your browser to make sure JavaScript is turned on.
This article is for educational purposes only. JPMorgan Chase Bank N.A. does not offer this type of product. Any information described in this article may vary by lender.
Real estate investing and investment properties typically go hand in hand. Real estate investing can mean many things. It can be something you take on in your personal life or it can turn into your new career path. There are entire companies based on real estate investing alone!
Whether you’re looking to get involved or just looking to learn, there’s something here for you. This article will take you through the basics of what real estate investing means, how it could benefit you and why it’s powerful knowledge to have.
Real estate investing is the purchase of property with the goal of returning profit. Profit can come from the management, rental and/or sale of the investment property. This can be a short or long term strategy, depending on which avenue you take.
Real estate development is the improvement of an investment property to drive up its value and desirability. Development is a common practice in real estate investing.
Investing in a rental property could be a good way to bring in some extra cash. The caveat is that you are now a landlord. If this is something you’re interested in full-time, that may not be a problem. But if you’re looking to make passive income, this may not be for you. Your responsibilities include overseeing tenants and taking care of issues that arise. You can hire a manager to do so, but you’ll need to pay them.
Investing in rental properties can be broken down even further. It can mean investing in a vacation home and renting out, or it can mean becoming the landlord of various properties in a city and renting to numerous tenants. It could also mean purchasing an even bigger piece of real estate, like an office building, and then renting the space out to other businesses.
Overall, there’s a lot of opportunity in the rental space. But that comes with many responsibilities, legal requirements and restrictions and often a lot of capital is required to finance such an undertaking.
Investing in a rental property is an enticing option for many people. Here are some of the reasons why:
Real estate investment trusts (REITs) are companies that own, finance or manage real estate that generate profit. REIT companies accept investments from other companies or individuals and invest that capital in real estate. The investors recoup their money via dividends from the real estate investments made by the company, without having to manage the property or do any of the heavy lifting.
Real estate investment funds are like REITs in that they both use capital from investors to invest in real estate. The biggest difference is that REITs must distribute 90 percent of their taxable income to investors to remain an REIT in the eyes of the IRS. Real estate funds, on the other hand, don’t need to do this. They return money to investors through real estate appreciation rather than dividends.
Another popular real estate investment strategy is house flipping. In simple terms, house flipping is when someone purchases real estate with the intention of fixing it up and selling it for profit. Buying low and selling high is the idea. House flippers will usually buy a fixer-upper in a popular neighborhood, make substantial improvements and then attempt to sell for a large profit.
House flipping can be a tricky game. Many people make the mistake of underestimating how much time, resources, and skill it takes to flip a house. If you aren’t well prepared for this undertaking you risk losing a lot of money.
Buying land is a real estate investment strategy exclusive to people with a lot of capital or individuals who are looking to invest in an exchange traded fund (ETF). Investing in an ETF is usually more realistic and often comes with less risk.
Overall, buying land is a limited, high risk investment but has many opportunities. Here are some common land investments:
When you think about it, almost anywhere you go there’s a piece of land or property that is owned by someone, somewhere. Whether its apartment buildings, office buildings or your local farm.
As you can see, there’s an overwhelming amount of opportunity in real estate investing. Real estate investing can mean buying another home, a rental property, or even a farm. It can also mean finding a real estate ETF for your portfolio. Even if you aren’t looking to get involved, it’s a good thing to keep in mind for the future.
Whether you want to lower your monthly payment, reduce the total amount you pay for your home or use your home’s equity to take cash out, refinancing can be a great option to meet your financial goals. No matter your reason, it’s important to find the option that works best for you.
If you are looking to have smaller mortgage payments, refinancing could be the right choice for you.
Buying a second home can be tricky, but with preparation and some help from experts, you can make an informed decision that’s right for your situation.
Choose the checking account that works best for you. See our Chase Total Checking® offer for new customers. Make purchases with your debit card, and bank from almost anywhere by phone, tablet or computer and 16,000 ATMs and more than 4,700 branches.
It’s never too early to begin saving. Open a savings account or open a Certificate of Deposit (see interest rates) and start saving your money.
Choose from our Chase credit cards to help you buy what you need. Many offer rewards that can be redeemed for cash back, or for rewards at companies like Disney, Marriott, Hyatt, United or Southwest Airlines. We can help you find the credit card that matches your lifestyle. Plus, get your free credit score!
Get a mortgage or refinance your home with Chase. See today’s mortgage rates, figure out what you can afford with our mortgage calculator before applying for a mortgage.
You might be able to use a portion of your home’s value to spruce it up or pay other bills with a Home Equity Line of Credit. To find out if you may be eligible for a HELOC, use our HELOC calculator and other resources before you apply.
Chase Auto is here to help you get the right car. Apply for auto financing on a new or used car with Chase. Use the payment calculator to estimate monthly payments.
“Chase,” “JPMorgan,” “JPMorgan Chase,” the JPMorgan Chase logo and the Octagon Symbol are trademarks of JPMorgan Chase Bank, N.A. JPMorgan Chase Bank, N.A. is a wholly-owned subsidiary of JPMorgan Chase & Co.
Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.
J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment advisor, member FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.
"Chase Private Client" is the brand name for a banking and investment product and service offering, requiring a Chase Private Client Checking account.
© 2022 JPMorgan Chase & Co.
Chase’s website and/or mobile terms, privacy and security policies don’t apply to the site or app you’re about to visit. Please review its terms, privacy and security policies to see how they apply to you. Chase isn’t responsible for (and doesn’t provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the Chase name.
About Author
