The end of the year is approaching, and with that comes some great opportunities to prepare to make the new year your best one yet in regards to financial independence and living the lifestyle you have always dreamed about. How is this accomplished? Buy a rental property before the end of the year – it’s that simple. In my 18 years of investing in real estate, I’ve learned how this can be easily done, just in time to ring in the new year with high hopes for a successful and bright future.
Before we dive in, here’s a quick summary of how to make your deadline of investing in real estate happen before January 1st arrives:
How to buy a rental property before the end of the year? 1) Decide to take action and move forward so you hit your goal of buying before the end of the year. 2) Have your finances sorted out to avoid any unexpected delays. 3) Utilize a full-service real estate investment company that has the experience to push a rental real estate purchase through quickly and efficiently.
Let’s take a closer look at how to invest in rental real estate before the end of 2024, and why it’s such a smart idea.
Why Buy a Rental Property Before the End of the Year?
You’re in the final stretch of the year and might be wondering if it would be wise to dive into that idea you’ve had for a while now – the idea of owning rental real estate. If you think it’s too late in the game because the deadline is approaching quickly, you may want to do a 180-degree turnaround on that thought. This time of the year is actually the best time to move forward with buying rental properties. Additionally, there are other reasons to make the final move and invest in your future.
Ok, now let’s get started. Here are four reasons why now is the time to buy a rental property before the end of the year:
1. The Chance to Achieve Your Goals Before the Year Ends
If creating passive income, leaving your day job, and building great wealth by investing in real estate has been a goal of yours for a while now, but you have never moved forward with it, now is the time! Imagine how fulfilling it would be to accomplish such a rewarding goal, and then slip into the new year with that marked off your to-do list. The best thing you could do for yourself, and your family, is to push forward on your intuition to invest in a rental property before the close of 2024.
2. Start 2025 with the Power of Monthly Cash Flow
Most individuals want to make the right decisions when it comes to their financial situation. This is especially true if they live paycheck to paycheck, have no savings, and are accumulating credit card debt. When this is the case, cash flow from a buy-and-hold property can turn their financial situation around by creating a steady stream of passive income. If you’re in a similar situation, then setting yourself up for financial success by investing in a rental property before the new year hits would be a wise decision. Regarding cash flow, be sure to bookmark our article on the topic for future reading – Maximize Cash Flow by Investing in Rental Properties that Deliver the Best Returns.
How much cash flow would you need to be financially independent? This question can be easily answered by finding your freedom number. Your freedom number is the amount of properties you would need to generate to cover all your monthly expenses so that you can quit your day job, if that’s your goal.
Download our free Freedom Cheat Sheet to find your freedom number and start planning for your future! For those who are heavily focused on becoming financially independent, you should check out our Financial Freedom Academy. It provides investors with invaluable mentorship and exceptional wealth-building tools. You can find out more by heading over to our Financial Freedom Academy website.
3. The End of the Year is the Best Time to Buy Performing Assets
The end of the year, typically November and December, are traditionally slower months for property sales. The hustle and bustle of the holiday season can distract investors, and the perception of money being tighter due to holiday spending can create a lull in investment purchases. In some states, the weather can also come into play. Smart investors know there is less competition during this time, and therefore, better purchasing power. Once December hits, the reasons above will be a big motivator for buying a rental property before the end of the year.
4. Invest in Buy and Hold Property Before January for Amazing Tax Benefits
Investing in real estate can provide you with tremendous tax benefits. Additionally, when you buy a rental property right before the end of the year, you may lower your tax burden even further because you haven’t had a chance to create any income off the property yet.
The government rewards real estate investors. This is because the investor is actually investing in the economy when buying and renting out a property. With this in mind, there are a wide variety of tax write-offs that can lower your tax burden, and also be applied to offset the taxes owed on other income sources you may have.
Here are just a few of the many tax write-off opportunities you may be eligible for:
- Interest on mortgage or credit card interest related to property purchases
- Maintenance and repairs
- Property taxes
- Home office – certain rules apply
- Meals and entertainment pertaining to business
- Travel expenses – airfare, mileage, as well as vehicle expenses
- Legal or professional services such as a CPA or a property management company
- Property insurance – we recommend utilizing NREIG Insurance Services. Also, we put together an article on the topic if you’re interested – Understanding Landlord Insurance Coverage: What Does It Cover?
- Depreciation – real estate investors keep more money in their pockets when they take advantage of the depreciation factor. Additionally, when investing in a new construction property, you can save thousands of dollars within the first year by utilizing the power of cost segregation. This allows you to depreciate items that you would not otherwise be able to when buying an existing property. You can read all about cost segregation studies to see just how much you can save on your taxes in our article – The Power of a New Construction Cost Segregation Study Can Save You Thousands.
Regarding taxes, to build up your knowledge on how to lower your tax burden, pick up this book from Amazon, Tax-Free Wealth, that I have personally read and recommend to all my friends and clients. It will reveal how to grow your wealth by lowering your taxes. The author just happens to be the tax advisor to real estate giant Robert Kiyosaki.
Easily Buy Before the End of the Year Using a Full-Service Real Estate Investment Company
Many investors set out to buy a rental property before the new year and end up missing their mark. Why is this the case? Because there are many moving parts, and it can be complicated if you don’t have enough experience. This is why, if the end of the year is soon approaching, I recommend having a full-service investment company take care of it for you.
So, if you don’t know how to buy a rental property before the end of the year, and feel there is way too much to figure out on your own, too many elements to take care of, and know it would be impossible to accomplish before 2025 hits, simply use a full-service real estate investment company such as Morris Invest. A full-service company will take care of EVERYTHING for you. This removes the stress, burden, and hassle of trying to make it happen yourself. Plus, utilizing a professional company ensures no costly mistakes are made during the process.
Morris Invest has a team of professionals with years of experience that can easily take care of all the details and quickly get you set up with a turnkey rental property. This way, you’ll be ready to receive a steady cash flow for the year 2025.
When it comes to turnkey real estate, I suggest diving into this post we put together with the CEO of the company we partnered with. It’s an amazing interview you won’t want to miss: More Than Just Turnkey — Experience Full-Service Build-to-Rent Real Estate with SDIRA Wealth. You can also check out our Team page, which discusses why we partnered with SDIRA Wealth, as well as lays out the programs we offer our clients.
Here is just a sampling of what our full-service real estate investment company can do for you:
- Perform extensive market research to ensure your property is in a location that sports a booming economy and a high demand for rentals.
- Through our bulk purchasing power and developer relationships, we offer our clients properties that are priced at or below market value.
- Our investments are designed to deliver 18+% IRR for maximum cash flow and profitability.
- Provide consultations on various funding strategies, along with offering a 1031 exchange program, setting up a self-direct IRA, and more.
- Assistance with incorporation to ensure maximum tax benefits and protect against liabilities.
- Offer new construction properties built from the ground up; this includes single-family housing and multi-family duplexes.
- A full cost segregation study is built right into our property purchases, which can save our clients thousands of dollars in taxes.
- Match up properties with excellent management teams that have already been vetted. Get an idea of how valuable this is through our post – The Ultimate Guide to Residential Property Management.
- Place a quality tenant for you so it will cash flow from the start.
- Full communication before, during, and after the rental property purchase, with ongoing education at no charge.
As you can see, investing in an income-generating performing asset such as a rental property, has a lot of moving parts to make it happen. The good news is, you really don’t have to worry about any of it. A full-service real estate investment company such as Morris Invest will take care of the details for you, making buying a rental property before the end of the year a snap!
Can You Elaborate on Some of the Main Steps Needed to Make Owning a Rental Property a Reality?
There are many steps in pushing a real estate purchase forward, but we’ll just cover a few of the main elements to give you a general idea of how the process works. Also, you can dive into the following video for additional details:
1. Decide to Take Action and Get the Ball Rolling Before the New Year Hits
One of the most important elements in buying a rental property before the end of the year is to make a decision to move forward with it. Some investors only daydream of owning a rental property, and they imagine the lifestyle they will have once that steady cash flow starts rolling in.
Unfortunately, not all take action on their thoughts or goals, and they remain stuck in their progress and current financial situation. Our thoughts and hesitations can be the biggest reason that we are held back, along with possible negativity from close friends or family. The investors who move forward and buy a property are the ones who are living out their dreams. It’s easy to make it happen, you just have to decide to take action and make it a reality.
2. Contact Morris Invest for Your Free Consultation
The second most important step is to contact a full-service real estate investment company that can handle everything involved in buying a rental property before the new year hits. Book a call with Morris Invest to get the ball rolling, and keep it rolling until you get that first rent check in your hands. This way, you can look forward to receiving steady cash flow month after month.
View our Morris Invest Testimonial page to hear from other investors who reached out to our team and now have a lucrative rental property in their portfolio. The bottom line is that you don’t have to worry about how to buy a rental property, all you have to do is give us a call, and we’ll do it for you.
3. Sort Out Your Finances to Determine the Best Way to Fund Your Year-End Investment Purchase
There are many ways to fund a rental property purchase, even when you think you have absolutely no money to contribute. Morris Invest can give you expert advice on which type of funding would be best for your situation.
Here are just a few funding ideas that other successful real estate investors have utilized:
- HELOC: It’s a common practice to take a home equity line of credit out to finance the purchase of a rental property. A HELOC is a bank loan that’s based on the equity in your home or other rental property. Read more about utilizing a HELOC in our article, which covers using a HELOC as a real estate investment tool to see if it’s right for you.
- Self-Directed IRA: This real estate funding strategy is an excellent idea if you possess a traditional IRA that you can rollover to a self-directed IRA account, or you already have an SDIRA. A traditional IRA is typically restricted to investing in stocks, bonds, and the like. In contrast, a self-directed IRA gives you more control over your fund’s buy and sell decisions, and you’re permitted to invest in real estate. Read our SDIRA Tips that Will Make You Rich article for more information. Or, for a full overview, dive into our main article on the topic – Investing in an SDIRA.
- 401(k): Most 401(k) plans allow for a loan to be taken out against it. It can provide the funds to invest in real estate, as well as maximize your retirement savings. Most individuals were taught to never touch their retirement savings, but this is not sound advice. Why? Because you most likely won’t have enough money to fully retire with your 401(k). But, if you utilize that money in a safe investment such as a rental property, it provides the opportunity to become wealthy and have more than enough to retire on. Learn about this funding strategy in our post – How to Buy Real Estate with Your 401(k).
- Unsecured Business Credit: This strategy can offer low-interest funding for your property purchases, and can be achieved through Fund & Grow, a company that has successfully raised over 25 million for Morris Invest customers. You can learn more about them by looking over our personal Fund & Grow Review article.
4. Incorporate Your Real Estate Investment Business
It’s crucial to incorporate when investing in real estate, compared to purchasing under your personal name. Placing your rental property under an LLC, for instance, will place your personal funds and properties out of reach from potential liability issues. It will also open up a host of tax benefits that you would not be eligible for if you did not incorporate.
If incorporating sounds a little intimidating, we highly recommend speaking with a few people that we trust who deal in LLCs and taxes – Scott Smith from Royal Legal Solutions, and Garret Sutton from Corporate Direct. Or, give the team at Morris Invest a call, we can answer your questions regarding incorporation and even help you set up an entity.
5. Choose a New Construction Property Type – Single-Family or Multi-Family Rentals
Morris Invest specializes in building lucrative new construction properties from the ground up, and we offer single and multi-family duplexes. Both are proven to be incredible cash flow generating assets. Feel free to schedule a complimentary call to determine which may be best for you. In the meantime, you can learn more about each investment type by heading over to the articles below:
- The Advantages of Investing in Single-Family Homes
- The Benefits of Investing in a Multi-Family Duplex – Increased Cash Flow and Reduced Risk
6. Decide if You Want to Utilize a Property Management Company
It’s recommended that a property management company is used so that your cash flow will be truly passive. This means you won’t have to be involved in the day-to-day operations of maintaining the property. Property management companies know how to run everything in such a way that your cash flow is fully maximized. Plus, they will deal with that broken heater phone call that comes in at 2 AM, not you.
You can read up on this topic by diving into our article – Why Hiring a Property Management Company Will Put More Money in Your Pocket. If you feel you would like a property manager to take care of your rentals and your tenants, know that Morris Invest assigns an experienced property manager to each rental we provide. Additionally, for those who prefer a more hands-on approach, you’ll want to check out this software that streamlines the tenant processes – it’s called the Landlord Studio. I’ve used it, and so have a large group of my clients; we all agree that it makes our lives easier. Take a look at the Landlord Studio’s website to see all its tools and features designed for real estate investors.
7. Fill Your New Investment with Quality Tenants
This is where it all comes together. Monthly rent-paying tenants are placed into your very own rental property. Morris Invest will take care of this step for you also. Your property will be filled with a reliable tenant that has been prequalified.
8. Sit Back and Receive Your Steady Cash Flow Generated from Monthly Rent Checks
Now for the exciting part, where you’re daydreaming finally becomes a reality. This is where you sit back as rent checks provide you with a steady cash flow, month after month, year after year. Morris Invest took care of making it all happen, your property manager takes care of your property and your tenant(s) moving forward, and you enjoy all the benefits of owning a rental property. You will now be on your way to building great wealth, becoming financially free, and living the life you have always dreamed of.
Additional Real Estate Articles by Morris Invest
If you’re new to the world of rental real estate, or even if you’ve been around the block a few times, you can always benefit from learning more on the topic. With that said, here are a few informative articles:
- Find out how equity is used in real estate investing
- Read up on the best investment strategies – stocks vs real estate
- Learn about estate planning and including a rental property
- Are Turnkey Properties a Good Investment?
- Learn About All the Reasons Texas Real Estate is So Affordable
- Find Out How to Buy Properties with Multiple Investors
- Read About Why a Cost Segregation Study is Worth it
- Tips for Foreign Investors Who Buy US Real Estate
Power Resources for Investors
- The Freedom Number Cheat Sheet
- Financial Freedom Academy
- The 90-Day Financial Empowerment Bootcamp
- Morris Invest & SDIRA Program Overview
Get on a Sure Path to Financial Independence by Buying a Rental Property Before the End of the Year!
Now that you know all that’s involved in purchasing a rental property, you might agree that leaving it up to the experts to handle every aspect of it, is a smart idea. This especially rings true when you would like to purchase rental real estate within the final months of the year. Our team of rental property experts has assisted hundreds of individuals in purchasing their properties by the end of the year, and they can make it happen for you as well.
We make investing in rental real estate really easy for you by building properties in exceptional rental markets, and filling these properties with qualified and reliable tenants. While we do all of this for you, you’ll be able to realize that your dream is finally coming true. Schedule a complimentary call so that you can make buying a rental property before the end of the year a reality.
For those who are still on the fence, and need some inspiration, head over to my personal story of how I left my dream job at Fox News to get in the driver’s seat of my financial future by investing in rental real estate.
Before you go, take a personal tour for a sneak peek at one of Morris Invest’s rental properties that was handed over to a real estate investor. Also, don’t forget that you can easily own a rental property in a state that you don’t live in – that’s the beauty of working with a full-service real estate company.
