20 Reasons You Should Invest In Real Estate
#TricksOfTheTrade
Real Estate … It May Not Be Shoes, But There’s Still Benefits To Owning It.
Real Estate is popular. What do I mean by that? Well, I can darn near guarantee that you know at least one person who is thinking about “getting into Real Estate” or is already an investor. Heck, you’re reading this right now, aren’t you? 😉
Maybe you’re already in The Game and you know how rewarding – both financially and mentally – it can be! Whether you flip homes, are a landlord or a Realtor, you understand what Real Estate can provide for you and your family.
I found a great article on Under 30 Wealth that included a list of 20 benefits to being a Real Estate Investor and I thought it was super interesting. The article itself has much more information than the excerpt below – to read the whole thing, click HERE.
The following is a brief snippet from “20 Reasons You Should Purchase Real Estate As An Investment”. Read it, and let me know what you think! 🙂
Why Be a Real Estate Investor?
You might be asking why someone would want to be a real estate investor so I’m going to rapid fire through a lengthy list of reasons real quickly for you:
- 90% of millionaires have become a millionaire as a result of owning real estate. It adds substantially to your net worth.
- Entrepreneurs have a greater opportunity to become wealthy through real estate than other businesses they may wish to start.
- Real estate doesn’t require a degree from college and doesn’t care what GPA you got, nor care where you went to school.
- Real estate doesn’t discriminate based on age, race, background, etc. but laws make it so that you have to be at least 18 years of age to purchase real estate as this is the age you are legally perceived as having the ability to read and understand contracts.
- Credit scores don’t matter in real estate as there are many other ways to purchase real estate besides bank financing. If you use bank financing then you will need a credit score.
- You can participate in real estate without using any of your own money
- You don’t have to be involved in real estate full time to be successful
- You can invest in real estate even if you have a full time job
- You can live in another state or country and still invest in real estate in a specific city other than the one in which you live in
- Real estate can provide you with steady monthly income
- Overtime, your tenants monthly rent payments will pay down your mortgage as well as other expenses such as maintenance, taxes, insurance, and still leave you money left over to live off of or to reinvest.
- The IRS says that the majority of tax payer wealth is held through real estate
- Real estate is more tax advantaged than other investments
- One tax advantage of real estate is depreciation because the IRS knows that overtime the structure built on the land, such as a house or apartment building, will break down thus they let you deduct depreciation expenses from your income to lower your taxes.
- The government gives you tax incentives to own real estate in order to motivate Americans to own real estate.
- Barriers to entry such as education/knowledge of real estate investing keep many people away from ever participating because they don’t understand it and don’t feel qualified enough to try it.
- Real estate uses the power of leverage which can allow you to own more real estate than money you put into the deal unlike stocks where you buy only how much you can afford and you have to have a lot of money before you start earning decent income from dividends.
- You can make money in both up and down markets. By purchasing property at the right price you can protect yourself from bad times and do very well in the good times.
- Real estate pays you based on results, not based on hourly wage or salary. Therefore, you control how much you want to earn and aren’t capped by your boss or employer
- Real estate can provide you financial freedom and allow you to live off of the passive income, no longer needing your job. Many join real estate investing to someday make enough money to quit their jobs.
There are many more reasons why you should invest in real estate but we will cap it at 20 for now.
We have a great investment opportunity listed in Auburn, CA right now. To check it out, head to our IG @norcalhomesaddevelopment 🙂