Most of today’s millionaires and billionaires come from real estate. Is that a coincidence? No, real estate investing has always been a money maker and now more than ever more and more people want to learn so they can start investing as well. You can skip all the learning and let the professionals handle it for you, or you can dive in and learn yourself, although we must warn you, there are a lot of things to learn.
Without further ado; The reasons most people choose real estate and the reason you should choose real estate are:
With any good rental property you purchase, the main goal is to bring in a profitable cash flow each month. Some properties, if bought at the right time (like today with all-time low mortgage rates) can yield around 15% cash flow.
Getting loans for values above the purchase price is a thing of the past! With cash on cash return on rental properties we can use that leverage. When buying a home that already has a tenant you can put almost nothing down. On other investment options you may need around 15-20% down
Real estate has its share of tax advantages, like the ability to depreciate a rental property or the tax-free gain. You can also release your rental property under a 1031 exchange or use an opportunity zone.
Buying below market
Buying a property below market value is another advantage to purchasing real estate. If you find a great deal you can buy a home for 30K less than the market value and that brings with it a massive advantage when building wealth.
No matter how you look at it, investing into real estate will always be the right call. Make sure you consult with a professional before you begin so they can help you navigate through the process and make sure you always end up on top!