“90% of all millionaires become so through owning real estate.” – Andrew Carnegie
Do you have a property or two that you are currently managing yourself, or that you currently have with another property management group? Have you been wanting to grow your portfolio of properties larger but can’t imagine how you would keep up with all of the work of managing a large group of tenants and expanded responsibilities for repairs and maintenance or struggling to find good, profitable properties to buy?
Maybe you are interested in diversifying your portfolio with a combination of “buy and hold” properties and “fix and flip” properties. Maybe you are ready to upgrade some smaller properties to larger estate or multi-unit residences. Whatever your real estate investment dreams may be, we have the brokerage and management know-how to make them a reality.
But is real estate investment a good choice for your wealth building and retirement goals?
Most people with extra income put that money in savings, the stock market, or real estate. Here are the seven reasons why real estate should be part of your wealth.
Building and Retirement Plan:
1. Rental properties create “cash flow.”
2. Excess cash flow can be reinvested either in mortgage pay-down or to buy more properties.
3. Your tenants pay your mortgage.
4. You can increase the value of your investment by making improvements.
5. Real estate appreciates and is a great hedge against inflation.
6. Tax benefits such as depreciation and mortgage interest deductions can reduce the taxes you pay.
7. Over time as rents increase, so does your income and cash flow.
Many investors are more comfortable with real estate investments because they are real. You can touch, feel, and inspect the property that you own. Additionally, as the property owner, you have more control over the value and use of your investment than the standard stockholder does.
Many investors reinvest cash flow while employed when extra income isn’t necessary so that as they enter retirement their real estate investments can provide monthly income without the need to “liquidate” the investment to receive it.
While both stocks and real estate are good investments over time, the real benefits of real estate over stocks is the ability to “buy equity.” Buying “undervalued” properties or “adding value” via renovations and improvements can spike returns over stocks. Here are other things to consider:
|Highly Leverageable||More Involvement/Expertise Required|
|Tax Advantages, 1301- Exchange, etc.||Illiquid|
|Substantial Cash Flow and Income|
If a concern about a lack of expertise or time is holding you back from investing in real estate, contact us. We can help with every aspect of the real estate investment process—from finding and acquiring good properties, to repairing and renovating, to financing, to leasing and managing. See if our team is the right partner for you to realizing your dream of a vibrant, appreciating real estate investment portfolio.
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