Using your Tax Refund to Invest in Real Estate
Published | Written by Jennifer Jacobs
One of the most common reasons that many people give for not getting involved in real estate investments is a lack of funding. While this can certainly be a problem, you might be surprised to discover that you may already have an easy source for funding your Tulsa real estate investment.
The solution is as simple as using your tax refund.
Obviously, your ability to use your tax refund for a real estate investment will depend on the amount of your return. One of the easiest ways to apply your tax refund toward a real estate investment is to use it as a down payment. In particular, an FHA down payment is ideal when combined with a tax refund. With the ability to put just 3.5% down on the purchase price for a property, you may be able to pick up a property in need of some repairs. If you are able to locate a property available with seller financing and flexible terms, this may be another great opportunity.
Another option would be to apply your tax refund toward private real estate investments. As a private money lender, you gain the benefit of being able to recoup your investment quickly and at a higher rate of return than is offered through most other investment options. Even if it does not seem as though your tax refund will go very far, you might be surprised to discover how many investors would be interested in working with you. Additionally, you can easily parlay the profits that you earn on your first project as a private real estate investor into a larger investment opportunity the next time.
Even if it appears your means are limited, your tax refund could be just the springboard you need to begin investing in real estate.