7 reasons why you should Invest in Real Estate

7 Major Reasons Why You Should Invest in Real Estate

Why do people invest in Real Estate?
Why is Real Estate a great investment?
What are the benefits that come with that?
What can Real Estate do for your life, your family, & generations to come?

Why do people invest in Real Estate?
Why is Real Estate a great investment?
What are the benefits that come with that?
What can Real Estate do for your life, your family, & generations to come?

1.Cash Flow

Cash Flow is what remains from the income, after you subtract your expenses & debt costs

Gross income (collected rent)
Expenses
= Net Income
Debt costs (loan)
= Cash Flow

2. Appreciation

Appreciation is How Much the property has increased in value ($) over time

Ex. You bought a property 2 years ago for $350K
Today, it’s worth $400K
That’s a $50K appreciation.
If you were to sell it today, that’s at least $50K you’re walking away with. (other calculations involved)

3. Equity

Equity is the difference between what the house is worth and what the owner owes on it.

Ex. You have a property that’s worth $400K today
You owe a total of $300K mortgage
= Equity of $100K
Leverage the equity to get more operating money.

4. Financial Leverage

Financial Leverage
●A
property is a tangible asset
●It
has a value ($) and will always have a value
(&
usually appreciates
in value
over time)
●You
can use the value of the property to
borrow money for investing
You
can use the value of the property to show
assets / net worth for other loans or
any where needed​

5. Generational Wealth

“Real estate investing has created 90% of the world’s millionaires.”
Imagine all the Cash Flow coming in from property you have
The value of your assets & the equity you have in them over time
Imagine the leverage that can allow you to multiply your success with investment property
Imagine what you can build here
What good you can do with that?
How much can you benefit others?
How much property (or liquid $) you can pass on?

6. Tax Benefits

Tax Benefits – There are many what Deductions that are applicable to Real Estate.

Depreciation
Tax Deductions for property expenses
1031 Exchanges
Passive Income & Pass Through Deduction
Tax-Deferred Retirement Accounts
* consult a good accountant

7. Necessity

Housing is a Necessity.

Real Estate will always be around.
People will always need housing.
Rent & Value increases over time.
Decreasing supply.

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