The Top Five Reasons to Invest in Real Estate

Number 1

Other People’s Money – There is plenty of money out there for you to use to buy real estate. You just need to go out and find other peoples money to buy discounted property. This is a great reason to invest you are not using your own money.

Number 2

Tax Breaks – Owning property gives you serious write offs and depreciation on your property. At tax time this will definitely help in lowering taxes paid.

Number 3

Equity – Buying property at huge discounts can give you a ton of equity in property. The best part is once you pay off the property you can keep it for cash flow or sell to withdraw your equity.

Number 4

Its Not That Hard – Everyone says they do not want to fix toilets at midnight when a tenant calls. You should have contractors that can take care of this for you so you do not have to do it. Landlording or investing is only as hard as you make it. In all honesty it is probably just as hard as the job you are currently working.

Number 5

Cash Flow – This should be your top reason to invest. In real estate you can build up enough property to create a residual income for you and your family.
Lets look at some numbers:

You own 10 rentals free and clear at a value of $100,000 each. The rent on each property is $1,000 a month. We will calculate vacancy, taxes, insurance and repairs at 40% just to be safe. That would give you $6,000 a month cash flow not including the taxes you have to pay on that income. This is not bad with just owning 10 properties free and clear, what if you got the number up to 20 properties owned.

Owning 10 to 20 properties require work but would not be a full time job at most it would take 2 or 5 hours a week to manage the properties.