• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

4 proven ways real estate will make your wealthier

January 8, 2023 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email
4 proven ways real estate wealth

If you’re thinking about buying a home, good, it’s a sound financial decision and it’s the bedrock by which most Americans in America have created wealth for themselves and their families. Here are the four pillars of owning real estate and how they all work in tandem with each other to make you wealthier as a homeowner…

Generally, houses appreciate 1 to 2% per year and have for the last forty-plus years in America. There will be peaks and valleys, and there will be times when that appreciation is not there, but by-and-large homes appreciate over the course of time.

If the property is a rental- cash flow is a driver of wealth. If the property cash flows where you can make money each month, this is going to be a good thing for you as it relates to having more income and also having the velocity of the 3rd element which is the loan pay down. The loan pa down builds your equity and you’re increasing your net worth by tiny amounts each month. So you’re paying down the loan while at the same time the house is appreciating in value thereby making you wealthier. This is a phenomenon that occurs happens for a primary home. secondary home coma or a debt-serviced rental property (meaning financed with a mortgage loan).

The last element is a tax break. You get to write off all of your mortgage interest and all of your property taxes. If you factor in the appreciation element, the loan paydown, and the cash flow the property could generate, as well as the fact that the property also gives you a benefit, comes tax time with Uncle Sam, you have a recipe for long-term wealth creation.  Own more than one property? The benefits here are doubled, on three properties the benefits are tripled, and so on and so on. Granted there are things you’ll need to budget for i.e. having enough income to sustain a mortgage payment and of course, being able to buy a property in the first place with a healthy down payment.

You can work up a financing arrangement with the seller where you can do secondary or seller-carry financing. If the seller is willing to pay points for you on the interest rate which will make the mortgage payment lower which will make the property cash flow more adding in the benefit of the appreciation and the loan pay down and your situation could augment even further. The point is here is real estate with these 4 elements on a property held over the course of time or multiple properties held over the course of time 5 to 7 years or longer almost guaranteed will make you wealthier and will give you a financial position to leverage the equity by cash-out refinancing for other purposes, or selling such property to acquire new property or even doing a 1031 tax-deferred exchange allowing you to roll the gain from one property to acquire another.

If you’re looking to buy a primary home or a rental property and need some mortgage guidance starts with a complimentary mortgage rate quote.

Related Mortgage Advice from Scott Sheldon

  • 5 Ways To Buy A Home

    With more home buyers entering the market, competition increasing, driving  prices in most pocket areas…

  • Understanding FHA Home Loans

    The two types of loans offered by a local mortgage lenders are conventional loans and…

  • Buying A Home In A Competitive Real Estate Market? Tips To Increase Your Odds

    Demand for real estate is prevalent is many markets across the country, one of the…

  • Why Cash Is king In Real Estate Negotiation
    Why Cash Is king In Real Estate Negotiation

    It is no surprise there is significantly more demand for housing than there is enough…

Filed Under: Uncategorized Tagged With: buying a house, buying your first home, Credit Markets, FHA home loans, home buying, home buying in Sonoma County, home loan refinance, how to buy sonoma county real estate, mortgage lender, qualifying for a mortgage, refinancing, sonoma county refinancing

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window