Investment in real estate has been my dream since I was 12; I have always had a great interest in real estate investment due to its passive income and stable cash flow once the rooms are occupied. Investing in real estate is more secure because the property often appreciates and has huge returns on investment ( Hanisch, 2019). Therefore, I would pick real estate investment for my personal and household investment plan. My most excellent role model in the real estate industry is my father; he has been in the real estate industry for the last 20 years and has established a vast customer base and crucial networks in the industry. He has relevant experience in the industry and the ability to gather information regarding house purchases. Recently, I had my father talking with a client about a house being sold for $ 10k. I got interested and asked him about it. Even though I only had $2500 to invest in something, my father advised me to apply for a loan and purchase the house as it would have a significant return on investment.
Over the past years, I have been thinking of investing in forex trading but have held on because it seems very risky and requires enormous capital investment. For the past six months, I have been investing my money in Thrift Saving Plan (TSP), and through the savings, I was approved for a $10k loan to purchase the house. I was to repay the money with 20 percent interest based on the loan terms after three years. It would mean that the money was to be repaid at a rate of 334 dollars a month for three years. After assessing the building, I realized that I could use 2000 dollars to renovate the house, but after renovation, I can rent the house at the cost of 600 dollars a month. It means that every one month, I will make a profit of 266 dollars. In 8 months, I shall have repaid the loan and started making a profit in the ninth month after investing. In three years, I shall have made a profit margin of $9,576 in three-year time.
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To improve my monthly income, I will use various investment strategies. One way of improving my financial situation is by looking for more investment opportunities in the real estate industry. I will seek more loans and purchase more houses for rentals. Since I already have background information regarding real estate, investing in the same industry would be advisable because I shall have gained more experience in the field. Other investment strategies include reducing monthly bills, developing a monthly expenditure plan, reading materials on personal finances, paying my loan in time to avoid a penalty, and improving my credit rating (Greenlee et al., 2020). I am also planning to double my monthly investment from $ 330 to about $600. I will also continue to invest in the Thrift Saving Plan to improve my credit ratings and increase the chances of securing a bigger loan. I will also seek to increase my loan repay to reduce the loan interest and the number of months required to pay the loan altogether. I prefer these strategies over others as they will allow me to improve my business as I maintain my current financial status. In the next five years, I expect a return of $ 13, 560 in the next five years, $ 27,120 in the next ten years, and $ 54,240 in the next 20 years.
References
Greenlee, A., Kramer, K., Andrade, F., Bellisle, D., Blanks, R., & Mendenhall, R. (2020). Financial Instability in the Earned Income Tax Credit Program: Can Advanced Periodic Payments Ameliorate Systemic Stressors?. Urban Affairs Review , 1078087420921527.
Hanisch, A. T. (2019). Factors influencing the propensity of real estate investors in the UK to employ property derivatives. Journal of Property Investment & Finance .
