In todays world most everyone works a nine to five and most everyone wants to be able to leave their nine to five behind. So, people spend a lot of time trying to plan their retirement, save what they can, and some really smart people invest.
The question that these people face though are what to invest in. What is the best investment vehicle to be able to get free of a nine to five? There are many types of investment from starting a business, to the stock market. The most common I would say is people investing in a 4o1k. There is one investment though that is responsible for a good majority of millionaires today, and that is real estate. There are many kinds of real estate and different ways to invest in real estate.
However, for now it is important that you understand why real estate investing the best way is to invest and get out of what call the preverbal rat race aka your nine to five. Most people can’t get rich selling their time so you need something that will work for you while you are at work or better yet while you sleep. There are many good reasons to invest in real estate. I want to go over my personal top five and by the end of this it is my hope that you to understand why you should learn how to invest in real estate.
First, real estate has a predictable cash flow. Cashflow is the net income made after all operating expenses have been paid. In my opinion a good investment property should provide you with a cashflow of 6% or better. The point of investing in real estate is to be able to make a profit after all operating expenses allowing you to make extra income outside of a nine to five.
Second, Real estate appreciates in value. For quite some time now real estate has appreciated at 6 percent a year. This includes the market crash in 2007, according to the National Association of Realtors. Real estate is a great investment for short term but especially long term. Many investors will hold their property for twenty years and double to money that they invested into the deal. Meaning that some who invest in a 5-million-dollar property can sell it for ten million dollars.
The third reason is that real estate can be improved as a quick what some people call value add. This is a good way to improve the deal if you want to sell the property fast and flip it for a quick profit. As well, by providing a value add you can raise rent increasing the money that you make monthly and annually. That is just another great benefit of real estate investing you have the ability to make a profit in the long or the short run.
The fourth reason is that real estate is tax deductible. Tax codes allow various deductions for the normal expenses incurred in owning real estate, such as interest paid on the mortgage. Taking advantage of these tax deductions can offset income and reduce your taxes overall.
The last reason one should invest in real estate is the gains are deferable. Basically, what that means is that the gain on the sale of an investment property to be transferred from the property being sold to a new property being purchased, meaning that payment of any tax on the sale of the property has be deferred.
With all of those reasons it is clear that investing in real estate is the best way to get free of you nine to five a build wealth that will provide for you and your family for many years better than any other investment. Of course, this is just my opinion and yours may differ so please feel free to leave a comment and tell me if you agree or what your opinion is.
BirchKey RealEstate 