Frequently Asked Real Estate Investing Questions
What is a real estate investment company?
A real estate investment company works with groups and individuals, buying property and selling it for a profit. At Fox Financial, our real estate investment group does not just buy and sell, we renovate as well. We have a team that doggedly hunts for the best properties throughout Utah and beyond. Then we buy them, fix them up and flip them.
How do I become a passive investor?
As a passive investor, you provide the funding for the purchase of one or more properties. Once you invest your money with us, you get a much higher interest rate than you would with a bank account, and your money is more secure than it is in the stock market. Stocks are a gamble; real estate is safe. Contact Fox Financial of Utah to start the process of becoming a passive investor with our team.
What’s the difference between active and passive investors?
Passive investors have no input in the process of flipping a house. Like a silent partner, they simply provide funding in exchange for a good rate of return on their investment. They don’t have to worry about sales, renovations or any other part of the process. Active investors make the purchases themselves. They can be individuals, or a company, such as Fox Financial. As active investor takes on more responsibility and more risk.
Is real estate investing safe?
Investing in real estate in Utah is one of the safest ventures you can make. While nothing is 100% certain, real estate is close. That’s because when you invest online in stocks, you don’t really know how the company is doing. You can research it, but you can’t predict events such as a CEO suddenly leaving, an abrupt downturn such as in travel and tourism after COVID-19 or any other unfortunate events. Real estate is property, and very rarely does it suffer unfortunate events. When you work with an experienced real estate investment company, you can be even more sure of your ROI.
How do you determine which are the best real estate investments?
This is tricky, and the only way to get good at it is through experience. At Fox Financial, we work closely with our construction teams — we don’t just farm out the work and hope for the best. We know exactly what to look for when we inspect a property, so we never get stuck with a house that costs more to fix than it’s worth.
Is buying an investment house the same as house flipping?
No. When you buy an investment property, you own and manage it. That means you take out a second mortgage and you’re responsible for maintenance, utilities, and upkeep. Mortgage rates are higher for second homes, and you will have a bigger tax liability on an investment home as well. You will also have to manage the search for tenants, leasing, security deposits, and more. When you flip a house, you have none of that. You buy the house, fix up and sell it.