SIMA Management Corporation
Image: sima.net
Jim Knell earned a degree in education at the University of California in Santa Barbara. He began his professional career as a teacher, but early on saw the potential in real estate. A decade after completing his education Jim Knell established SIMA Corporation in Santa Barbara, a real estate acquisition and management company.
Real estate appeals to investors because of its potential returns. There are several ways to earn through real estate, such as:
1. Residential property income – A residential property is often rented long-term, ensuring a stable revenue stream and a predictable return on investment. In addition, investors can also look forward to appreciation in a property’s value as the neighborhood surrounding the property is developed or restored. Investors can also increase a property’s value by making improvements.
2. Vacation rental income – Some investors purchase a home in a popular tourist location as a second home, and rent it out for short periods as well. To take full advantage of a vacation rental property, investors are advised to keep their personal use down to just a few weeks per year. Vacation property becomes a very good investment when rental income begins to cover all mortgage payments.
3. Real Estate Investment Trusts (REIT) – To fund various large projects, commercial real estate developers sell shares to real estate investors in what are known as REITs. Once the real estate project starts earning income, the REIT acts as a landlord, collects the rentals, and passes on the profits to shareholders.
James Knell (Santa Barbara) 