INVESTORS
Did you know there are more people interested in Real Estate investing today... than at any other time in history?Â
It's True!
There are no exact numbers in yet... but all indications are that they'll be staggering. It appears as if the Baby Boomers are at a point in their lives where they want more. More money... more time... more lifestyle perks... more of everything. And, they see Real Estate as the vehicle that will allow them to obtain these benefits.
What are some of the benefits of Real Estate ownership? Well... there're plenty:
Cash Flow:Â Cash flow can be simply defined as the difference between your income and your expenses on a piece of property. This can be positive or negative. Obviously... it feels a lot better when it's positive. Depending on your goals, negative cash flow may play a part in your investment program. If you want to get to free and clear on the fast track... you'll be making some sacrifices in cash flow. A healthy positive cash flow will allow you more leeway... more room to maneuver... more options. Besides, debt is only one component of expenses. Taxes, insurance, maintenance and management never go away. Happiness is a... positive cash flow.
Appreciation:Â Appreciation is the increase in value of a property. There are two kinds of appreciation. The first is from economic conditions beyond your control, such as inflation. Since we can't control these factors it would be foolish to buy, hoping inflation will bail us out of a questionable deal, or provide us with a profit. Don't misunderstand, this stuff can make you rich... but... it can be dangerous to think it's anything more than icing on the cake.
The second kind of appreciation is forced appreciation. This kind of appreciation you can control. When you can improve a property, you are in effect forcing it's value higher. With forced appreciation, it becomes possible to purchase a piece of property in need of repair at it's "As Is" market value... bring it back up to neighborhood standards or slightly higher... and end up with a much more valuable property. The key factor here is - you control this process.
Leverage:Â Leverage is the ability to borrow a percentage of the value of a piece of property. Real Estate, in comparison to other investments, offers a very high degree of leverage. It is not uncommon for investors to buy a single family house and obtain 100% financing. It's done every day. This allows an individual to purchase Real Estate with little, if any, of their own money. What other investments offer such a high degree of leverage?
Amortization:Â With leverage, or the use of other people's money, comes a repayment schedule. Unless you're only paying the interest on a loan (interest only payments)... your outstanding balance is being reduced with every payment you make. Part of each payment goes to interest (applied first) and part of your payment goes to principal. The principal reduction is called amortization.
Tax Advantages:Â There a several sections of the Internal Revenue Code (IRC) you can use to your advantage as you assemble and disassemble your Real Estate empire. They are worth knowing and utilizing. But, don't be fooled into buying Real Estate for the Tax Advantages. Buy Real Estate because it makes economic sense to buy.
Other Real Benefits:Â The benefits described above are the standard benefits of owning investment Real Estate. There are other benefits... considered by some to be intangible... you should seriously consider. Here's a quick run-down. There are many, many ways to make money with Real Estate. Learning just one can provide you with a renewable source of income. Real Estate can provide you with a source of cash... cash flow... help you build an estate... provide you and your family with an exceptional lifestyle... provide you with shelter... help you become independent... provide a springboard for bigger and better things... and on and on. . They're portable. Allowing you to relocate and re-establish yourself in short order. You can even generate profits while on vacation And last, but not least, time is on your side. Real Estate will work for you even on those days you don't work. And with time... your skills will improve. This is an evolutionary process. As you mature and evolve... so will your profits.
By filling in the form below it will help us in providing you in a timely manner with an accurate list to meet your specific investment needs: