Top 5 Reasons to invest in real estate

Here’s my list of the Top 5 Reasons to Own Real Estate as an investment:

1.  Easy to get into: own your own house first!  Did you know that the average net worth is about 50, that’s five zero, times greater than that of someone who rents their home.  You need to live somewhere, so you may as well build equity while you do it.  Do you already own your home?  Think of the impact that it has had on you financially, and now think of what that would look like if you had two, or five, or ten!

2.  There are two ways to make money: cash flow and equity.  Depending on your goals of which one is more important to you then you approach it differently, but both are possible in real estate!

3.  The power of leverage: make money from the bank’s money.  When you buy an asset for cash, and it increases in value by 5%, then you just made a 5% return on your money.  But, Let’s say you buy a $100,000 house and put down 20%, or $20,000.  If that asset goes up 5%, that is $5,000.  However, since your investment was $20,000 then the return on your money is 25% rather than 5%.  You do need to make payments on the money that you borrowed of course, but that’s why we do that with income generating assets.  Meaning, we use rent money to cover our payment.

4.  You make money when you buy it - Keeping your eyes open for something that is priced low either due to condition or they have a financial need allows you to buy things where you have equity from the moment you purchase it.  We also look for opportunities to add value and cause it to be worth more like adding a bathroom or bedroom or making the kitchen layout more functional.

5.  You are providing a meaningful service - Everyone needs housing.  To be part of a need that is so common to us all is something that I find very satisfying!

Need even more reasons?  No, I don't think you do.  Let's get you on the path to financial independence!