Kevin Ortner discusses what Rent Estate is and how average Americans are able to use their current home as a rental property in order to secure retirement long term.
More Americans are renting right now and by investing in rental properties, you’re able to diversify your portfolio and take advantage of appreciation.
Mike: Welcome back to the FlipNerd.com REI Classroom where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Kevin: Hi. I’m Kevin Ortner, CEO of Renters Warehouse, and I’ll be your host today on REI Classroom.
Mike: This REI Classroom real estate lesson is sponsored by VirtualStaffNow.com.
Kevin: We’re here to talk today about what is rent estate. Rent estate is really what we like to call real estate for the rest of us or investing for ordinary, average Americans. For years, people have looked at investment real estate as something that was only attainable for the wealthy or those who have the right bank accounts or bank connections, or people who owned large apartments or commercial properties. And really today, and what we’ve seen over the last maybe 10 years is ordinary Americans turning what used to be the primary residents into rental property or going out and buying a single-family home condo or townhome to turn into investment real estate as well.
It’s really a new way of seeing your property from a one-and-done sale to a way to turn into cash flow over the long-term. So why is rent estate such a solid bet? Really, renting is the new owning. We’re seeing more and more millennials or even baby boomers turn to renting property rather than owning property as just a lifestyle choice, as a way to be more flexible, and be able to move around and not be tied down to a large mortgage payment. And we’re actually seeing one in four new households formed are renter households, and believe it or not, almost 17 million of all renter households in America today are in single-family homes. And so really, renting has changed from being in an apartment or a condo to turning to that single-family home or that it’s really a different kind of rental property.
And so really simply put, renting has become more popular than ever, which makes it a great time, as an ordinary American, to get into investment real estate or we call rent estate. It’s a win-win for everybody. Really for tenants, you’re providing, as an investor, a way for them to maintain that flexibility, have to avoid large mortgage payments and being locked out in one place. And for you, as an ordinary investor or real estate investor, rent estate really provides a different way to diversify your investment portfolio rather than just having all of your money in stocks or bonds or the bank account making no interest. You can put it into real estate, have tenants pay down your mortgage, at the same time, your property’s increasing in value. And it’s really a way to secure retirement for the long term.
So all of those things wrapped together are what we like to call rent estate. And simply put, it’s a new way to own investment properties, a new way to look at your primary home that you’re looking at moving out of and going into a new property. Rather than sell it for that one-time profit, consider renting it out for long-term rental income, and all of the tax benefits and long term retirement benefits that go along with it. And frankly, this rental market is ever changing with more and more demand makes it a great time to get into this game for rent estate. That’s all we have for you today. I look forward to seeing you again here on REI Classroom soon.
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