Reasons to Invest in Real Estate
[blockquote align=”left” author=”Andrew Carnegie”]Ninety percent of all millionaires become so through owning real estate.[/blockquote]
There are a millions of reasons to want to invest in real estate, literally. The biggest one is that real estate has traditionally been one of, if not the largest private wealth creator. I’m sure you’ve seen the stats and heard the quotes.
The key to those who want to start to invest in real estate, is to choose one area and focus on it until you are a master of it. Maximize your benefits early on, before looking to branch out into new aspects of the business.
Creating Cash Flow
[blockquote align=”left” author=”Theodore Roosevelt”]Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.[/blockquote]
A great reason to invest in real estate is the income received from the properties that you invest in. There are just so many good uses of this cash flow. You can:
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- Invest in more real estate
- Use is to seller finance and become the bank
- Send your children to the school you’ve always wanted to
- Build your Self Directed IRA or Health Savings Account
- and the list goes on and on
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Building Equity
[blockquote align=”left” author=”Will Rogers”]Don’t wait to buy real estate, buy real estate and wait.[/blockquote]
When you invest in real estate, the value of your properties tend to increase over time, but you, the investor, are not taxed on the increase unless and until you decide to sell it. Here are a few ways that you might build equity in a property:
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- Time: Real Estate almost always tends to appreciate over time, given reasonable maintenance is up kept.
- Comparable Bump: If the prices of properties around yours start selling for more money, this will result in an increase in the value of your property.
- Renovations: You might consider upgrading or renovating one of your properties. It is important to keep in mind what is typical for the neighborhood and property when doing upgrades to receive maximum return on your investment.
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Using Wealth to Create Wealth
[blockquote align=”left” author=”Anthony Trollope”]It is a comfortable feeling to know tht you stand on your own ground. Land is about the only think that can’t fly away.[/blockquote]
Another reason to invest in real estate is that you are able to borrow cash against the equity held by you in other leases and makes use of that money as the deposit for another investment. By doing so you are rendering the costs of your interest liable for taxes.
This strategy is known as leverage and is used as one of the techniques to build your income. Through efficient use of leverage, an investor is able to keep liquid capital and achieve profits as well.
If you are interested in finding out more about why you should invest in real estate, I invite you to check out our Investor Mentoring Program.
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