“90% of all millionaires became millionaires through Real Estate” -Andrew Carnegie
Real Estate has made hundreds of thousands of people millionaires since the early 19th century. Real Estate investing has four main streams of income that has the ability to build wealth unlike any other investment in the world.
Cash Flow
Cash flow is the money left over after all expenses are paid. For instance, if you own a property and the rental value is $1200 a month and the expenses in order to maintain and operate the property is $1000, the money remaining after all expenses are paid is $200.00. This is called cash flow.
Appreciation
Over time most properties will increase in value. The average increase in home value is 3-5% depending on the market and area. For instance, if the value of a property is $100,000 with an appreciation rate of 3% every year, after 12 months the value of the home is projected to be worth $103,000.
Depreciation (Loan Pay down)
Depreciation is the decrease of the amount of money owed to the bank. Usually the tenant in the property pays down your mortgage owed to the bank every month from the rent.
Tax Benefits
Real Estate has the best tax benefits than any other investment across the globe. It is very important to consult with a Certified Public Accountant who specialize in Real Estate to enjoy the tax write offs and benefits from the IRS. Find a great accountant to help you with the process! Some common tax write-offs from owning rental real estate includes depreciation, interest, property taxes, maintenance, repairs and many more!
Talking Real Estate Investing in Single Family Homes! 