Big Money in Real Estate
Big Money in Real Estate. Making money in real estate is highly rewarding, largely because of the many sources of income it offers and the many advantages of real estate – invest in success!
Why invest in real estate
Out of the many different investment vehicles, real estate is the single one that offers the greatest control over how you make your money. In fact, other investments such as stocks and mutual funds are usually seen as risky mainly because they offer very little control to the investor – “Mr Market is always right!” You have little actual control over the price of the stock you invest in; you can only respond to changes in price in order to make money.
Control over Interest rates
When you invest in savings or bonds, the interest rate is determined by the bank. In real estate, however, you can usually determine the amount of interest you want to collect.
Control over Income
When you invest in stocks, bonds or mutual funds, your income is determined by the market. In real estate, however, you have the flexibility to increase or decrease your income.
Control over Taxes
When you invest in paper assets, you have little control over taxes. Real estate and business present many legal loopholes that gives you much control over when you pay your taxes and how much you pay. Tax laws at present support re-investment into your own business or real estate. Through the 1031 tax-deferred exchange, you can reinvest your capital gains in another property – without having to pay taxes.
Real estate and small business allows you to make use of ‘inside information’ to give you the largest leverage possible. In the stock market, however, insider information is usually illegal.
Control over Property value
Unlike in paper assets, where you usually have little control over the value of what you invest in, with real estate you can increase the value of your property in many ways: cosmetic improvements, converting an apartment house into a condominium, developing the land in the area, and much more.
If you buy a piece of raw land, you can even become a developer and change the zoning of a piece of land.
More Big Money in Real Estate
Ability to use leverage
Banks are more than willing to lend you money to invest in property – but you can hardly find any willing lenders if you plan to invest in stocks instead.
Real estate income is among the most stable of all the different types of investment incomes. As tenants come in and rents are gradually raised, your checks will come in every month like clockwork.
However, you do need to ensure that your real estate is well-managed. A capable management would serve you, the owner, well by helping you make cosmetic upgrades that will keep the good tenants, and ensure that the buildings are in good condition.
Real estate is also highly scalable. As you become more experienced in identifying good investments, you can easily move from buying single units to buying entire apartments or even neighborhoods.
Yes, there is big money in real estate. And the earlier you teach yourself how to make money in real estate, the better.