Why Real Estate?
How These Real Estate Advantages Explain it All?
That's the question that most people ask.
Well, I have to say that after researching
all about this subject, I have found
compelling reasons why you should start investing in real estate(NOTE: All types of investments have risks, even in real estate. So please seek financial advice and mentors before you start investing).
I hope the articles on these real estate advantages could help you.
1. To Attain Financial Freedom
Why financial freedom? Don't you want to stop working and retire for the rest of your life? Many people will think, "Is it possible to stop working from 9 to 5 and sit at your own home collecting money? You bet it is. If your goal is to make a lot of money and yet cannot help but realizing that you are also working harder for your money, then investing in real estate is the investment vehicle for you.
I have learn this from Robert Kiyosaki's book called
Rich Dad Poor Dad
This is not a book about real estate, but a story about how he learns about money, investing, and finance from his rich dad. Learn more about this book.
2. Getting the Passive Income
"Whether you work or not, the money keeps flowing". That's best describing about passive income. When you succesfully acquire a rental property, that monthly income keeps flowing into your bank account. Notice the word PASSIVE, which means receiving without initiating an action. Other forms of passive income are royalties from selling books, audios, and movies
3. Acquiring Cash Flow
Everyone knows that cash flow is the lifeblood of a business. it's even important for real estate investors because cash flow can make or break your investment. Imagine having one property that generates positive cash flow, while you go out and look for another one. That means lots of properties and lots of cash flowing into your bank account.
4. Mentors are available (you are not alone)
Today, investing in property is even possible for all people because of the available mentors(Hey, that's what this site is all about!). More and more real estate mentors are willing to teach people the secrets of successful real estate investing. These mentors are not always in the form of person. It can be books, audio, video and even games!
5. Flipping (Buy and Sell)
For those who like flipping properties(or flippers), it is a good way to buy and sell your property for a handsome profit. Let's say you bought a property for $125,000 and after 3 years it has appreciate in value, about $150,000, you decide to sell it and acquire the profits. For those specializes in flipping, it requires total hard work but the rewards are great.
6. The Principles of Leverage
What is leverage? In the dictionary, leverage is defined as the use of credit to increase the rate of return from an investment. How leverage can be powerful in real estate investing? Suppose you bought a property worth $125,000, would you pay all the amount? Sure you don't. You pay 10% and borrow the rest from the bank.
Leverage is not limited to money. it can be your agent, property manager, accountant, and lawyers. That's how the investors use leverage to become rich.
To know more about leverage, I highly recommend Robert Kiyosaki's book
Retire Young Retire Rich.
This book talks about the various types of leverage in order to retire rich. I have benefited from this book and still learning from these principles
7. Buying Below Value
Unlike stocks, buying property below its original value is Do-able. You can negotiate with the seller for the price. Most of the books i've read suggest real estate investors have the upper hand is this situation. I suggest reading Rich Dad's
Real Estate Riches
if you want to know more about this technique.
8. Becoming a Millionaire
Most of the rich or self-made millionaires invest in real estate. They either create wealth or park their money on real estate. Almost 90% of the rich are real estate investors.
One of the best books i've read about becoming a millionaire is the best-selling
One Minute Millionaire.
This book outlines the strategies and choices of becoming a millionaire.
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