Generating Income Through Real Estate

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.

The Value of an Appraisal to a Home Buyer

Home Appraisals
Image: realtor.com

California resident Jim Knell is a real estate executive with decades of industry experience. In addition to early career experience as an independent investor, Jim Knell is the founder and chairman of SIMA Corporation, a property management and development firm that provides comprehensive real estate management and investment services.

An important component of any real estate transaction is the property appraisal. Conducted by a professional licensed in the field, an appraisal is the process through which the value of real estate is estimated.

An appraiser will evaluate market conditions as well as the size, features, and condition of the house to determine an estimated market value. This process takes place in most real estate transactions and offers protection to the buyer. If an appraisal returns a value higher than the purchase price, the buyer is getting a bargain and will gain equity in the property. However, if the appraisal is lower, the buyer may be protected from overpaying by negotiating a lower purchase price.

Pilates Classes from Swell in Santa Barbara

Swell, Santa Barbara
Image: sbac.swellclubs.com

After launching his career as an independent investor in real estate, Jim Knell formed the SIMA Corporation in 1984 to manage his acquired properties. Now, Jim Knell serves as chairman the SIMA umbrella of companies, including Swell Athletic Clubs, which runs facilities such as the one in Santa Barbara.

The Swell Santa Barbara Athletic Club in California offers its clients a variety of opportunities ranging from regular aquatics and fitness programs to personal training services. The Earthbar Cafe on site sells power smoothies and healthy snack foods to support muscle health and overall nutritional wellness. The Santa Barbara Athletic Club also encompasses a Pilates studio.

At the Pilates studio, clients can attend group sessions, a series of 10 classes, semi-private sessions, or receive private instruction. Pilates itself is a practice that focuses on exercises to fortify the body’s core and enhance muscles surrounding the joints. Practicing the Pilates exercise regimen can help increase flexibility, balance, and structural alignment. Additional benefits include improved respiration and a greater feeling of being centered.