Top Key Benefits of Investing in Real Estate Dave Lindahl-
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There are many ways to make m oney investing in real estate; fix an d flips, long-term rentals, vacation rentals, REITs, short-term rentals, l ong-range investing, non performi ng loans, wholesaling and your per sonal residence can all be consider ed ways to invest in real estate.
Income The investor should know going i nto the purchase that the propert y will COST money each month. hi s scenario, although not ideal, ma y be OK, only in specific instances that we will discuss later. It boils down to the risk tolerance and ab ility for the owner to fund and pa y for a negative producing asset.
Depreciat ion With investment real esta te, you are able to utilize it s depreciation for your own tax benefit. It's a non-cost accounting method to take into account the overall fin ancial burden incurred thro ugh real estate investment.
Expense s
Generally, all expenses inc urred relating to the proper ty are deductible when it co mes to your investment pro perty. The cost for utilities, the cost for insurance, the mortgage, and the interest and property taxes you pay.
Appreciatio n
Appreciation means the gr owth of value of the underlyi ng investment. It's one of th e main reasons that we inves t in the first place, and it's a powerful way to grow your n et worth.
Leverage Leverage is much more ac ceptable in the real estate w orld and inherently less risky than leverage in the stock w orld. Leverage is common in real estate. Otherwise, peop le would only buy property when they had 100% of the cash to do so.
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