The government cannot save you or your family, or ensure your financial freedom. Set your mind right about earning money. Start investing in real estate today! More cash = more freedom. Money itself won’t make you happy. But it will give you the power to provide a better life for yourself and your loved ones.
You must invest with income streams that give you positive cash flow. Learn to leverage your debt. And learn to handle inflation and take control of your physical assets. Are you scared to have your money in the stock market? Sick of seeing almost no return on investments at the bank? Do you like the idea of being invested in income producing real estate with results you can see?
Then real estate is the perfect choice to protect and grow your wealth. Here are eight reasons why you should start investing in real estate today:
Positive Cash Flow
One of the biggest benefits to income producing real estate is that leases secure the assets. This provides a regular income stream that is much higher than typical stock dividend yields.
Using Leverage to Multiply Asset Value
Another major thing about real estate investing is the power to place debt on the asset. This allows you to buy more assets with less money. It also allows you to greatly increase asset value and increase equity as the loans are paid down.
Low-Cost Debt Leveraged to Multiply Cash Flow
Placing “positive leverage” on an asset allows investors to increase positive cash flow from operations. They can borrow money at a lower cost than the property pays out.
Hedge on Inflation
For each dollar created, there is a matching liability. But real estate investments have shown the highest correlation to inflation when compared to other asset classes. It is vital to see the benefits of owning income producing real estate as a hedge against inflation. Generally speaking, when inflation occurs, the price of real estate will also rise.
Capitalize on the Physical Assets
Income-producing real estate is one of the few hard assets that has meaningful value. The property’s land has value. The structure itself has value. And the income it produces has value to future investors. Real estate investments do not have red and green days like the stock market. So start investing in real estate today!
Maximizing Tax Benefits
The U.S. Tax Code benefits real estate owners in many ways. These include unlimited mortgage interest deductions and depreciation accelerations. This can shield a portion of the positive cash flow generated and paid out to investors. At the time of sale, IRS also allows investors a 1031 provision. This allows investors to exchange into a like-kind instrument and defer all taxable gains into the future.
Asset Value Appreciation
More and more inflation has made it into the economy, thus, greatly reducing purchasing power. Although, income producing real estate investments have shown great appreciation in value. They have met and exceeded other investment types. Properties increase in value as the net operating income of the property improves. This happens through rent increases and more effective management of the asset.
Feeling the Pride of Ownership
Nothing feels better than the right property in the right place with the right tenants. This can produce a great pride of ownership factor that is highest among all asset classes. However, homeownership is out of reach for many people. So imagine owning thousands of rentals to give these people a place to call home!
No one can ensure the future of rental income properties’ values. But this asset class is in a place to continue to benefit from many other socio-economic issues. So now is the time. Start investing in real estate today!