Why Should I Invest in Real Estate?

A brief breakdown providing insight on why so many investors consider real estate an IDEAL investment.

I - Income

Receive cash in-hand, monthly. Investors maintain control over a property's revenue stream. You make the decisions affecting the profitability of your income-producing asset. You've officially reached 'boss' status.

D - Depreciation

Earn more, pay less. Why are the wealthy taxed lightly? Phantom expenses known as tax-benefits; owners write-off property depreciation as an expense. Effectively utilizing 'loopholes', in regards to property ownership, grants flexibility. Remember the old adage, "a penny saved is a penny earned".

E - Equity

Increase ownership for free. Is this possible? Yes, with happy tenants. They pay you, you pay the mortgage. The principal balance shrinks as equity rises. Each month you own a bit more of the asset than when you initially purchased it. Get excited!

A - Appreciation

Relax as property values mature. How can assets depreciate and appreciate simultaneously? Over time; forced by the owner or the market. Owners appreciate their properties with rent increases, property repairs, home additions, etc. This is termed forced appreciation. Properties also experience market appreciation; population growth, increased employment opportunities, and area beautification. Competent investment decisions and management efforts not only maximize profit but grow asset value. It's not 1 way to do 50 things but 50 ways to do 1 thing; in this case, increase profits.

L - Leverage

Investors acquire properties through mortgages. A maximum 20% down payment for total control, an exceptional deal. Anyone can prosper from this unbalanced transfer of ownership. Investors also employ current assets to acquire additional assets by capitalizing on built-in and/or earned equity. Yet another way to take advantage of a prime investment.