It is very hard to lose money with real estate investing. A bad investor can make it look easy.
Real Estate Simultaneously Pays in 5 Independent Ways
A smart real estate investor can easily earn total rates of return of about 50% annually. Yes, that high! Real Estate pays in following 5 independent ways:
- Appreciation
- Cash Flow
- Loan Amortization
- Tax Benefit
- Inflation-Hedging
Let’s say you purchased a single-family rental for $100,000 by putting down $20,000 and taking out an $80,000 loan from the bank. Now let’s add up:
It’s Almost Impossible to Lose Money in Real Estate If You Follow This Simple Rule
Always buy for cash flow, never for appreciation. Let appreciation be cherry on the top, not the whole cake. Timing the market is not investing, it is gambling. The challenge most people have is that they live in a city where it’s hard to find cash-flowing properties. That’s why you need to be open to investing out-of-state with a professional property management company.
Do This Next Time You Invest in Real Estate
- Don’t try to time the market
- Invest for cash flow
- Be open to investing out of your city and state.
- Hire a property manager so that you can scale up.
P.S. High-paid professionals are always wondering where to invest their savings. They don’t want to take more risks with stocks because they already have a lot of money invested in the stock market. Not knowing where to invest, they end up with lazy money sitting in a bank.
At Wealthy Together we help high-paid professionals grow wealth by teaching Passive Real Estate Investing. Sign up for FREE E-Mail Education Series and make more money with less risk.