I am often asked why I am in the business of real estate...
- First of all, Real Estate is familiar. We all live in a home and the basic maintenance and operational issues are things we already know a great deal about. Educating ourselves about other alternative investments like stocks, bonds, life insurance, etc. can feel overwhelming, but building on our real estate knowledge is a simple next step.
- Real estate is tangible and stable. It will not evaporate into thin air or become worthless. It is an investment we can purchase with a down payment and a loan from the bank, which means we can reap 100% of the benefits of ownership even though we may only have 10-25% equity. Perhaps the greatest extra benefit is that real estate historically appreciates in value over time. It is probably true that for most retired Americans, they have more wealth in their paid off home than all other investments combined. They probably wish they had bought one or two more.
- Because of the preferential tax regulations, we can build wealth with almost unbelievable reductions in taxes owed. Keeping Uncle Sam out of our cookie jar allows wealth to build and allows us to achieve our investment goals.
- We are in control. We can take action to affect the value or the return on our investment. We can improve it or clean it, add to it or take away. We all have the ability to get the front door painted, place fresh pine straw, plant flowers or schedule the property for pressure washing. In contrast, for example, what can we do to affect the price of our “Coca-Cola” stock?
- Finally, after the tenants pay off the mortgage on the property for you. The property continues to produce income each and every month. It has now become a small business providing a reliable income and an asset that continues to become more valuable as time goes by.
All that being said, real estate is not a mistake proof endeavor. The advice needed is enough to fill volumes but fortunately we are here, we believe in real estate and we want to share the techniques to help you be successful.