Being a real estate investor might not always be glamorous, but as many investors claim, it’s a great investment opportunity and a real occasion to get that cash flow going. For those with an entrepreneurial mind and with financial goals for the long-haul, this opportunity is an amazing one that you should take this year. From plenty of spare time for yourself, to a decent and in some cases, even generous income, and diverse investment methods, make sure to turn your attention to this amazing investment method. Below are some reasons why you should do this.
Many investors that chose this path, claim that the cash flow that remains after all the bills have been paid is more than generous. Especially if your investment in properties with a great potential, you will have a continuous income which is mostly passive. If you don’t mind collecting the monthly rental fees, you can consider yourself settled for quite some time. Also, this income will repeat itself on a monthly basis, which makes real estate investment a solid investment option. Cash-flow generated by real estate has quite of a predictable and repetitive pattern.
Especially if you invest the right way (managed commercial real estate under the 1031 Section are tax deferred) you will certainly enjoy very favourable tax advantages. For making 1031 real estate investments you simply have to identify a replacement property for your current one (the properties should be estimated at the same market value and have a commercial purpose). But finding a reliable advisor and letting them handle your entire process is a considerably more advantageous option.
When you buy a mortgage for a rental property, the tenants are those that are actually paying your mortgage. This way, your net worth is increasing on a monthly basis. This turns your property into a savings account and keep in mind that it automatically grows as time passes.
Appreciation is one of the biggest advantages of this type of investments. While you pay your loan at its initial value, your property is very likely to appreciate which makes it even more profitable. If you take into account the fact that you aren’t paying the mortgage yourself, this is a great benefit. Your tenants are paying your mortgage while you enjoy the financial advantages of your property being appreciated.
If you plan to invest in a real estate property, you must know that this type of entrepreneurship allows you to have more control over your life, mainly time and finances. This is an advantage that not many can claim that they have. Regardless, real estate investors seem to have more time for themselves, an increased income and a stress-free life knowing that even if your properties or the market is depreciating you can still wait for a favourable circumstance to sell your property and have your money cash.